# EDGAR Filing Document

**Accession Number:** 0002077810
**File Stem:** 0001133228-26-005848
**Filing Date:** 2026-4
**Character Count:** 1352352
**Document Hash:** be1c9619b4e5edae80220f596919a8cc
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001133228-26-005848.hdr.sgml**: 20260420

**ACCESSION NUMBER**: 0001133228-26-005848

**CONFORMED SUBMISSION TYPE**: 485BPOS

**PUBLIC DOCUMENT COUNT**: 6

**FILED AS OF DATE**: 20260420

**DATE AS OF CHANGE**: 20260420

**EFFECTIVENESS DATE**: 20260501

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Pruco Life Insurance Co (RILA/MVA)
- **CENTRAL INDEX KEY:** 0002077810

**ORGANIZATION NAME:**
- **EIN:** 221944557
- **STATE OF INCORPORATION:** AZ
- **FISCAL YEAR END:** 1231
- **LEGAL ENTITY IDENTIFIER:** WD1VLJACN4N8BKI6YK62

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-288852
- **FILM NUMBER:** 26875824

**BUSINESS ADDRESS:**
- **STREET 1:** 213 WASHINGTON STREET
- **CITY:** NEWARK
- **STATE:** NJ
- **ZIP:** 07102
- **BUSINESS PHONE:** 973-802-7333

**MAIL ADDRESS:**
- **STREET 1:** 213 WASHINGTON STREET
- **CITY:** NEWARK
- **STATE:** NJ
- **ZIP:** 07102

## Series and Classes Contracts Data

### Pruco Life Insurance Co (RILA/MVA) (Series ID: S000095790)

| Class ID   | Class Name                                                                                                                                      | Ticker Symbol   |
|:---|:---|:---|
| C000264555 | PRUDENTIAL PREMIER RETIREMENT VARIABLE ANNUITY ("X,B,L,C Series") (Applicable to contracts with applications signed from 03/15/2010-02/24/2013) |  |

Filed with the Securities and Exchange Commission on April 20, 2026<br>REGISTRATION NO. 333-162673; 333-288852<br>INVESTMENT COMPANY ACT NO. 811-07325

**UNITED STATES**<br>**SECURITIES AND EXCHANGE COMMISSION**<br>**WASHINGTON, D.C. 20549**

**FORM N-4**

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933<br>POST-EFFECTIVE AMENDMENT NO. 44 (333-162673)<br>and<br>REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940<br>AMENDMENT NO. 221 (811-07325)

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933<br>POST-EFFECTIVE AMENDMENT NO. 1 (333-288852)

**PRUCO LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT**<br>(Exact Name of Registered Separate Account)

**PRUCO LIFE INSURANCE COMPANY**<br>(Name of Insurance Company)

213 WASHINGTON STREET<br>NEWARK, NEW JERSEY 07102-2992<br>(Address of Insurance Company's principal executive offices)

(973) 802-7333<br>(Insurance Company's telephone number, including Area Code)

CT CORPORATION SYSTEM<br>3800 NORTH CENTRAL AVENUE, SUITE 460<br>PHOENIX, ARIZONA 85012<br>(Name and address of agent for service)

COPIES TO:<br>Elizabeth L. Gioia<br>VICE PRESIDENT<br>PRUCO LIFE INSURANCE COMPANY<br>ONE CORPORATE DRIVE<br>SHELTON, CONNECTICUT 06484<br>(203) 402-1624

Approximate Date of Proposed Public Offering: Continuously on and after the effective date of this Registration Statement

**It is proposed that this filing become effective: (check appropriate box)**

□ immediately upon filing pursuant to paragraph (b) of Rule 485

⊠ on May 1, 2026 pursuant to paragraph (b) of Rule 485

□ 60 days after filing pursuant to paragraph (a)(i) of Rule 485

□ on __________ pursuant to paragraph (a)(i) of Rule 485

**If appropriate, check the following box:**

□ This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

------

**Check each box that appropriately characterizes the Registrant:**

□ New Registrant (as applicable, a Registered Separate Account or Insurance Company that has not filed a Securities Act registration statement or amendment thereto within 3 years preceding this filing)

□ Emerging Growth Company (as defined by Rule 12b-2 under the Securities Exchange Act of 1934 ("Exchange Act"))

□ If an Emerging Growth Company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of Securities Act

⊠ Insurance Company relying on Rule 12h-7 under the Exchange Act

□ Smaller reporting company (as defined by Rule 12b-2 under the Exchange Act)

**PRUCO LIFE INSURANCE COMPANY**<br>Pruco Life Flexible Premium Variable Annuity Account<br>A Prudential Financial Company<br>751 Broad Street, Newark, NJ 07102-3777

**PRUDENTIAL PREMIER RETIREMENT VARIABLE ANNUITY X SERIES ("X SERIES")**<br>**PRUDENTIAL PREMIER RETIREMENT VARIABLE ANNUITY B SERIES ("B SERIES")**<br>**PRUDENTIAL PREMIER RETIREMENT VARIABLE ANNUITY L SERIES ("L SERIES")**<br>**PRUDENTIAL PREMIER RETIREMENT VARIABLE ANNUITY C SERIES ("C SERIES")**<br>(Applicable to contracts with applications signed from 03/15/2010 – 02/24/2013)<br>

**Flexible Premium Deferred Annuities**<br>**Prospectus Dated:** **May 1, 2026**

This prospectus describes the Prudential Premier Retirement Variable Annuity X Series, B Series, L Series, and C Series, four different flexible premium deferred variable annuity classes offered by Pruco Life Insurance Company ("Pruco Life", "we", "our", "the Company", or "us"). The Annuity provides for the potential accumulation of retirement savings through investment in the Contract's investment options during the Savings Stage and retirement income through annuitization during the Payout Period. The Contract is intended for retirement or other long-term investment purposes.

The types of investment options currently offered under the Annuity include variable investment options with underlying mutual funds ("Variable Options"), Market Value Adjustment Options, and Dollar Cost Averaging ("DCA") Market Value Adjustment Options that offer a fixed rate of interest for a set period of time called a "Guarantee Period." **See** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_956) **for additional information about each investment option.**

If you are receiving this prospectus, it is because you currently own one of these Annuities. These Annuities are no longer offered for new sales. Each of the B Series, L Series, C Series and X Series is a class within a single annuity contract, rather than a separate annuity contract under State insurance law. For convenience in this prospectus, we sometimes refer to each of these annuity classes as a "Contract" or "Annuity", and to the annuity classes collectively as the "Contracts" or "Annuities." We also sometimes refer to each class by its specific name (e.g., the "B Series"). **Because the X Series** **Annuity grants Purchase Credits with respect to certain Purchase Payments you make, the expenses of the X Series Annuity may be higher** **than expenses for an Annuity without a Purchase Credit. In addition, the amount of the Purchase Credits that you receive under the X Series** **Annuity may be more than offset over time by the additional fees and charges associated with the Purchase Credit.**

This prospectus describes all the investment options, features, and benefits that we make available under the Annuity. **The availability of investment** **options, features and benefits described in this prospectus may vary depending on the broker-dealer through which the Contract is sold** **("financial intermediary variations")**. We have identified all such financial intermediary variations that are known or reasonably available to us, **See** **"**[**<u>Appendix J</u>**](#chapter_27-sect1_1_956)**", "Financial Intermediary Variations."** Financial intermediary variations may be imposed by some broker-dealers without our knowledge. For example, your Financial Professional may not recommend a particular investment option or benefit to you because of a decision by the Financial Professional's broker-dealer not to offer that investment option or benefit to its customers. Taking into consideration the breadth of our distribution network, we are unable to obtain information about all financial intermediary variations without unreasonable effort or expense. **You should** **discuss with your Financial Professional any limitations, restrictions, or other variations related to the investment options, benefits or other** **features available to you through your Financial Professional**.

The Annuity or its Investment Options and/or features may not be available in all states. **See** [**<u>"Appendix B"</u>**](#chapter_19-sect1_1_956) **for additional information about state** **variations.**

This prospectus sets forth information about the Annuity that you should know before investing. Please read this prospectus and keep it for future reference. The Annuity is a complex investment that involves risks, including potential loss of principal.

The Annuity is not a short-term investment and is not appropriate for an investor who needs ready access to cash. Withdrawals may reduce the level of various optional benefit guarantees and could result in taxes and tax penalties. In addition, premature withdrawals from a Market Value Adjustment Option and DCA Market Value Adjustment Option will result in a Market Value Adjustment. **In extreme circumstances, the maximum potential loss** **resulting from a negative Market Value Adjustment is 100% of the amount invested in a Market Value Adjustment Option and DCA Market** **Value Adjustment Option.**

The Company's obligations under the Annuity are subject to its financial strength and claims-paying ability.

In compliance with U.S. law, we deliver this prospectus to Annuity Owners that currently reside outside of the United States. However, we may not market or offer benefits, features or enhancements to prospective or current Annuity Owners while outside of the United States.

This Annuity provides a Credit which can be recaptured in certain circumstances described in this prospectus. This Credit may be more than offset by fees and charges in this Annuity, which are also described in this prospectus. These fees and charges may be higher than other, similar products that do not offer a Credit.

------

These Annuities are NOT deposits or obligations of, or issued, guaranteed or endorsed by, any bank, and are NOT insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board or any other agency.

------

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

------

Additional information about certain investment products, including variable annuities and market value adjusted annuities, has been prepared by the Securities and Exchange Commission's staff and is available at <u>www.investor.gov</u>.

FOR FURTHER INFORMATION CALL 1-888-PRU-2888 OR VISIT: <u>WWW.PRUDENTIAL.COM/ANNUITIES</u>

PPRT2PROS

------

**Table of Contents**

------

---

| | |
|:---|:---|
| [**GLOSSARY OF TERMS** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_2_956) | [**1**](#chapter_2_956) |
| [**OVERVIEW OF THE CONTRACT** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_3_956) | [**4**](#chapter_3_956) |
| [**KEY INFORMATION** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_4_956) | [**5**](#chapter_4_956) |
| [**FEE TABLE** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_5_956) | [**9**](#chapter_5_956) |
| [**PRINCIPAL RISKS OF INVESTING IN THE CONTRACT** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_6_956) | [**13**](#chapter_6_956) |
| [**DESCRIPTION OF INSURANCE COMPANY, REGISTERED SEPARATE ACCOUNT, AND INVESTMENT OPTIONS** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_7_956) | [**16**](#chapter_7_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHO IS PRUCO LIFE?....................................................................................](#chapter_7-sect1_2_956) | [16](#chapter_7-sect1_2_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [WHAT ARE THE SEPARATE ACCOUNTS?.....................................................................](#chapter_7-sect1_3_956) | [16](#chapter_7-sect1_3_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [INVESTMENT OPTIONS...................................................................................](#chapter_7-sect1_4_956) | [17](#chapter_7-sect1_4_956) |
| [**CHARGES AND ADJUSTMENTS** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_8_956) | [**20**](#chapter_8_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [MARKET VALUE ADJUSTMENT OPTION CHARGES.............................................................](#chapter_8-sect1_2_956) | [23](#chapter_8-sect1_2_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ANNUITY PAYMENT OPTION CHARGES......................................................................](#chapter_8-sect1_3_956) | [23](#chapter_8-sect1_3_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [EXCEPTIONS/REDUCTIONS TO FEES AND CHARGES...........................................................](#chapter_8-sect1_4_956) | [23](#chapter_8-sect1_4_956) |
| [**GENERAL DESCRIPTION OF CONTRACTS** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_9_956) | [**24**](#chapter_9_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [CHANGE OF OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS.............................................](#chapter_9-sect1_2_956) | [24](#chapter_9-sect1_2_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TRANSFER AND REBALANCING PROGRAMS..................................................................](#chapter_9-sect1_3_956) | [25](#chapter_9-sect1_3_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [MARKET VALUE ADJUSTMENT OPTIONS.....................................................................](#chapter_9-sect1_4_956) | [27](#chapter_9-sect1_4_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [MARKET VALUE ADJUSTMENT.............................................................................](#chapter_9-sect1_5_956) | [27](#chapter_9-sect1_5_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [RESTRICTIONS ON TRANSFERS BETWEEN INVESTMENT OPTIONS...............................................](#chapter_9-sect1_6_956) | [27](#chapter_9-sect1_6_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [FINANCIAL PROFESSIONAL PERMISSION TO FORWARD TRANSACTION INSTRUCTIONS...............................](#chapter_9-sect1_7_956) | [28](#chapter_9-sect1_7_956) |
| [**ANNUITY PERIOD** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_10_956) | [**30**](#chapter_10_956) |
| [**BENEFITS AVAILABLE UNDER THE CONTRACT** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_11_956) | [**31**](#chapter_11_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [OPTIONAL LIVING BENEFITS..............................................................................](#chapter_11-sect1_2_956) | [33](#chapter_11-sect1_2_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY LIFETIME INCOME v2.1 BENEFIT..............................................................](#chapter_11-sect1_3_956) | [34](#chapter_11-sect1_3_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SPOUSAL HIGHEST DAILY LIFETIME INCOME v2.1 BENEFIT......................................................](#chapter_11-sect1_4_956) | [46](#chapter_11-sect1_4_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY LIFETIME INCOME v2.1 WITH HIGHEST DAILY DEATH BENEFIT......................................](#chapter_11-sect1_5_956) | [54](#chapter_11-sect1_5_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SPOUSAL HIGHEST DAILY LIFETIME INCOME v2.1 WITH HIGHEST DAILY DEATH BENEFIT..............................](#chapter_11-sect1_6_956) | [64](#chapter_11-sect1_6_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [GUARANTEED RETURN OPTION PLUS II (GRO PLUS II)..........................................................](#chapter_11-sect1_7_956) | [73](#chapter_11-sect1_7_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HIGHEST DAILY GUARANTEED RETURN OPTION II (HD GRO II)...................................................](#chapter_11-sect1_8_956) | [77](#chapter_11-sect1_8_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TRIGGERS FOR PAYMENT OF THE DEATH BENEFIT............................................................](#chapter_11-sect1_9_956) | [82](#chapter_11-sect1_9_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [EXCEPTIONS TO AMOUNT OF DEATH BENEFIT................................................................](#chapter_11-sect1_10_956) | [82](#chapter_11-sect1_10_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [BASIC DEATH BENEFIT...................................................................................](#chapter_11-sect1_11_956) | [83](#chapter_11-sect1_11_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SPOUSAL CONTINUATION OF ANNUITY......................................................................](#chapter_11-sect1_12_956) | [83](#chapter_11-sect1_12_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [PAYMENT OF DEATH BENEFITS............................................................................](#chapter_11-sect1_13_956) | [84](#chapter_11-sect1_13_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [BENEFICIARY CONTINUATION OPTION......................................................................](#chapter_11-sect1_14_956) | [85](#chapter_11-sect1_14_956) |
| [**PURCHASES AND CONTRACT VALUE** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_12_956) | [**87**](#chapter_12_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [REQUIREMENTS FOR PURCHASING THE ANNUITY.............................................................](#chapter_12-sect1_2_956) | [87](#chapter_12-sect1_2_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [DESIGNATION OF OWNER, ANNUITANT, AND BENEFICIARY......................................................](#chapter_12-sect1_3_956) | [88](#chapter_12-sect1_3_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [PURCHASE CREDITS UNDER THE X SERIES..................................................................](#chapter_12-sect1_4_956) | [90](#chapter_12-sect1_4_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SCHEDULED PAYMENTS DIRECTLY FROM A BANK ACCOUNT....................................................](#chapter_12-sect1_5_956) | [92](#chapter_12-sect1_5_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SALARY REDUCTION PROGRAMS..........................................................................](#chapter_12-sect1_6_956) | [92](#chapter_12-sect1_6_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [VALUING THE VARIABLE OPTIONS..........................................................................](#chapter_12-sect1_7_956) | [92](#chapter_12-sect1_7_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [VALUING THE MARKET VALUE ADJUSTMENT OPTIONS.........................................................](#chapter_12-sect1_8_956) | [92](#chapter_12-sect1_8_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [PROCESSING AND VALUING TRANSACTIONS.................................................................](#chapter_12-sect1_9_956) | [92](#chapter_12-sect1_9_956) |
| [**SURRENDERS AND WITHDRAWALS** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_13_956) | [**95**](#chapter_13_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TYPES OF DISTRIBUTIONS AVAILABLE TO YOU...............................................................](#chapter_13-sect1_2_956) | [95](#chapter_13-sect1_2_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [TAX IMPLICATIONS FOR DISTRIBUTIONS FROM NONQUALIFIED ANNUITIES.........................................](#chapter_13-sect1_3_956) | [95](#chapter_13-sect1_3_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [FREE WITHDRAWAL AMOUNTS............................................................................](#chapter_13-sect1_4_956) | [95](#chapter_13-sect1_4_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SYSTEMATIC WITHDRAWALS..............................................................................](#chapter_13-sect1_5_956) | [96](#chapter_13-sect1_5_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SYSTEMATIC WITHDRAWALS UNDER SECTIONS 72(t)/72(q) OF THE INTERNAL REVENUE CODE.........................](#chapter_13-sect1_6_956) | [97](#chapter_13-sect1_6_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [REQUIRED MINIMUM DISTRIBUTIONS.......................................................................](#chapter_13-sect1_7_956) | [97](#chapter_13-sect1_7_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [SURRENDER VALUE.....................................................................................](#chapter_13-sect1_8_956) | [98](#chapter_13-sect1_8_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [MEDICALLY-RELATED SURRENDERS.......................................................................](#chapter_13-sect1_9_956) | [98](#chapter_13-sect1_9_956) |
| [**TAXES** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_14_956) | [**100**](#chapter_14_956) |

---

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [NON-QUALIFIED ANNUITIES...............................................................................](#chapter_14-sect1_2_956) | [100](#chapter_14-sect1_2_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [QUALIFIED ANNUITIES...................................................................................](#chapter_14-sect1_3_956) | [104](#chapter_14-sect1_3_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ADDITIONAL CONSIDERATIONS............................................................................](#chapter_14-sect1_4_956) | [110](#chapter_14-sect1_4_956) |
| [**LEGAL PROCEEDINGS** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_15_956) | [**111**](#chapter_15_956) |
| [**FINANCIAL STATEMENTS** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_16_956) | [**112**](#chapter_16_956) |
| [**ADDITIONAL INFORMATION** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_17_956) | [**113**](#chapter_17_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW WILL I RECEIVE STATEMENTS AND REPORTS?...........................................................](#chapter_17-sect1_2_956) | [113](#chapter_17-sect1_2_956) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [HOW TO CONTACT US...................................................................................](#chapter_17-sect1_3_956) | [113](#chapter_17-sect1_3_956) |
| [**APPENDIX A – INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_18_956) | [**A-1**](#chapter_18_956) |
| [**APPENDIX B – SPECIAL CONTRACT PROVISIONS FOR ANNUITIES ISSUED IN CERTAIN STATES** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_19_956) | [**B-1**](#chapter_19_956) |
| [**APPENDIX C – HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT, HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT WITH** **LIFETIME INCOME ACCELERATOR, AND SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT – NO LONGER AVAILABLE** **FOR NEW ELECTIONS** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_20_956) | [**C-1**](#chapter_20_956) |
| [**APPENDIX D – HIGHEST DAILY LIFETIME INCOME, HIGHEST DAILY LIFETIME INCOME WITH LIA AND SPOUSAL HIGHEST DAILY** **LIFETIME INCOME – NO LONGER AVAILABLE FOR NEW ELECTIONS** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_21_956) | [**D-1**](#chapter_21_956) |
| [**APPENDIX E – HIGHEST DAILY LIFETIME INCOME 2.0, HIGHEST DAILY LIFETIME INCOME 2.0 WITH LIFETIME INCOME ACCELERA** **TOR, SPOUSAL HIGHEST DAILY LIFETIME INCOME 2.0, HIGHEST DAILY LIFETIME INCOME 2.0 WITH HIGHEST DAILY DEATH BEN** **EFIT, AND SPOUSAL HIGHEST DAILY LIF** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_22_956) | [**E-1**](#chapter_22_956) |
| [**APPENDIX F – OPTIONAL DEATH BENEFITS** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_23_956) | [**F-1**](#chapter_23_956) |
| [**APPENDIX G – FORMULA FOR GRO PLUS II** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_24_956) | [**G-1**](#chapter_24_956) |
| [**APPENDIX H – FORMULA FOR HIGHEST DAILY GRO II FORMULA FOR ELECTIONS OF HIGHEST DAILY GRO II MADE PRIOR TO** **JULY 16, 2010** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_25_956) | [**H-1**](#chapter_25_956) |
| [**APPENDIX I – FORMULA FOR HIGHEST DAILY LIFETIME INCOME V2.1 SUITE, HIGHEST DAILY LIFETIME INCOME 2.0 SUITE, HIGH** **EST DAILY LIFETIME INCOME SUITE AND HIGHEST DAILY LIFETIME 6 PLUS SUITE OF LIVING BENEFITS** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_26_956) | [**I-1**](#chapter_26_956) |
| [**APPENDIX J – FINANCIAL INTERMEDIARY VARIATIONS** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.** **.**](#chapter_27_956) | [**J-1**](#chapter_27_956) |

---

------

[Back to **Table of Contents**](#TOC_956)

**GLOSSARY OF TERMS**

------

We set forth here definitions of some of the key terms used throughout this prospectus. In addition to the definitions here, we also define certain terms in the section of the prospectus that uses such terms.

**Account Value:** The total value of all allocations to the Variable Options and/or the Market Value Adjustment Options on any Valuation Day. The Account Value is determined separately for each Variable Option and for each Market Value Adjustment Option, and then totaled to determine the Account Value for your entire Annuity. The Account Value of each Market Value Adjustment Option will be calculated using a Market Value Adjustment factor, if applicable.

**Accumulation Period:** The period of time from the Issue Date through the last Valuation Day immediately preceding the Annuity Date.

**Adjusted Purchase Payments:** Purchase Payments we receive increased by any Credits applied to your Account Value, less any fees, charges or Tax Charges we deduct prior to allocation to the Variable Option(s) you select.

**Annual Income Amount:** This is the annual amount of income for which you are eligible for life under the optional benefits.

**Annuitant:** The natural person upon whose life annuity payments are based.

**Annuitization:** Annuitization is the process by which you direct us to apply the Unadjusted Account Value to one of the available annuity options to begin making periodic payments.

**Annuity Date:** The date on which we apply your Unadjusted Account Value to the applicable annuity option and begin the payout period. As discussed in the "[<u>Annuity Period</u>](#chapter_10-sect1_1_956)" section, there is an age by which you must begin receiving annuity payments, which we call the "Latest Annuity Date."

**Annuity Year:** The first Annuity Year begins on the Issue Date and continues through and includes the day immediately preceding the first anniversary of the Issue Date. Subsequent Annuity Years begin on the anniversary of the Issue Date and continue through and include the day immediately preceding the next anniversary of the Issue Date.

**Beneficiary(ies):** The natural person(s) or entity(ies) designated as the recipient(s) of the Death Benefit or to whom any remaining period certain payments may be paid in accordance with the annuity payout options section of this Annuity.

**Beneficiary Annuity:** You may purchase an Annuity if you are a Beneficiary of an account that was owned by a decedent, subject to the requirements discussed in this prospectus. You may transfer the proceeds of the decedent's account into one of the Annuities described in this prospectus and continue receiving the distributions that are required by the tax laws. This transfer option is only available for purchase of an IRA, Roth IRA, or a Non-qualified Beneficiary Annuity.

**Free Withdrawal Amount:** The Free Withdrawal amount is the amount that can be withdrawn from your Annuity each Annuity Year without the application of any CDSC.

**Code:** The Internal Revenue Code of 1986, as amended from time to time and the regulations promulgated thereunder.

**Contingent Annuitant:** The natural person named to become the Annuitant upon the death of Annuitant prior to the Annuity Date. A Contingent Annuitant may be named only in limited circumstances involving an Annuity issued to a Custodial Account or to a tax-qualified retirement plan.

**Contingent Deferred Sales Charge ("CDSC"):** This is a sales charge that may be deducted when you make a surrender or take a partial withdrawal from your Annuity. We refer to this as a "contingent" charge because it is imposed only if you surrender or take a withdrawal from your Annuity. The charge is a percentage of each applicable Purchase Payment that is being surrendered or withdrawn. The CDSC may also be referred to as a Surrender Charge in this prospectus.

**Custodial Account:** A trust or Custodial Account that qualifies as an individual retirement account as defined in Section 408(a) of the Code, including a Roth IRA that satisfies the definitions in Sections 408(a) and 408A of the Code.

**Dollar Cost Averaging ("DCA") Market Value Adjustment Option:** An Investment Option that offers a fixed rate of interest for a specified period. The DCA Market Value Adjustment Option is used only with our 6 or 12 Month Dollar Cost Averaging Program, under which the Purchase Payments that you have allocated to that DCA Market Value Adjustment Option are transferred to the designated Variable Options over a 6 month or 12 month period. Withdrawals or transfers from the DCA Market Value Adjustment Option will be subject to a Market Value Adjustment if made other than pursuant to the 6 or 12 Month DCA Program.

**Due Proof of Death:** Due Proof of Death is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claims forms from at least one Beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary.

**Excess Income:** All or a portion of a Lifetime Withdrawal that exceeds the Annual Income Amount for that benefit year is considered excess income ("Excess Income"). Each withdrawal of Excess Income proportionally reduces the Annual Income Amount for future benefit years.

------

[Back to **Table of Contents**](#TOC_956)

**Good Order:** Good Order is the standard that we apply when we determine whether an instruction is satisfactory. An instruction will be considered in Good Order if it is received at our Service Center: (a) in a manner that is satisfactory to us such that it is sufficiently complete and clear that we do not need to exercise any discretion to follow such instruction and complies with all relevant laws and regulations; (b) on specific forms, or by other means we then permit (such as via telephone or electronic submission); and/or (c) with any signatures and dates as we may require. We will notify you if an instruction is not in Good Order.

**Guarantee Period:** The period of time during which we Credit a fixed rate of interest to a Market Value Adjustment Option.

**Investment Option:** A Variable Option or Market Value Adjustment Option available as of any given time to which Account Value may be allocated.

**Issue Date:** The effective date of your Annuity.

**Key Life:** Under the Beneficiary Continuation Option, or the Beneficiary Annuity, the person whose life expectancy is used to determine the required distributions.

**Lifetime Withdrawals:** Amounts withdrawn under the optional living benefits that provide the Annual Income Amount each year until the death of the Annuitant (or the death of two spouses, if a spousal benefit is elected), regardless of the performance of your Account Value subject to our rules regarding the timing and amount of withdrawals.

**Market Value Adjustment:** A positive or negative adjustment used to determine the Account Value in a Market Value Adjustment Option.

**Market Value Adjustment Options:** Investment Options to which a fixed rate of interest is Credited for a specified Guarantee Period and to which a Market Value Adjustment may apply. The Market Value Adjustment Options consist of (a) the DCA Market Value Adjustment Option used with our 6 or 12 Month DCA Program and (b) the "Long-Term Market Value Adjustment Options", under which Guarantee Periods of different yearly lengths are offered.

**Maturity Date:** With respect to a Market Value Adjustment Option, the last day in a Guarantee Period.

**Owner:** With an Annuity issued as an individual annuity contract, the Owner is either an eligible entity or individual named as having ownership rights in relation to the Annuity. In certain states, with an Annuity issued as a certificate under a group annuity contract, the "Owner" refers to the person or entity that has the rights and benefits designated to the "participant" in the certificate. Thus, an Owner who is a participant has rights that are comparable to those of the Owner of an individual annuity contract.

**Portfolio:** An underlying mutual fund in which a Variable Option of the Registered Separate Account invests.

**Protected Withdrawal Value:** In connection with an optional living benefit, the amount to which the Withdrawal Percentage is applied to determine your Annual Income Amount, which initially equals your Unadjusted Account Value. The Protected Withdrawal Value is also used to determine your optional living benefit fee. It is separate from your Account Value and not available as cash or a lump sum withdrawal.

**Purchase Credit:** Under the X Series only, an amount that we add to your Annuity when you make a Purchase Payment during the first four Annuity Years. We are entitled to recapture Purchase Credits under certain circumstances. See "[<u>Purchase Credits under the X Series</u>](#chapter_12-sect1_4_956)," for more details.

**Purchase Payment:** A cash consideration in currency of the United States of America given to us in exchange for the rights, privileges, and benefits of the Annuity.

**Registered Separate Account:** (Separate Account) Pruco Life Flexible Premium Variable Annuity Account, which holds the assets supporting the Variable Options. Assets held in the Registered Separate Account are kept separate from all of our other assets and may not be charged with liabilities arising out of any other business we may conduct.

**Service Center:** The place to which all requests and payments regarding the Annuity are to be sent. We may change the address of the Service Center at any time, and will notify you in advance of any such change of address. Please see "[<u>How to Contact Us</u>](#chapter_17-sect1_3_956)" in this prospectus for the Service Center address.

**Surrender Value:** The Account Value (which includes the effect of any Market Value Adjustment) less any applicable CDSC, any applicable tax charges, any charges assessable as a deduction from the Account Value for any optional benefits provided by rider or endorsement, and any Annual Maintenance Fee.

**Unadjusted Account Value:** The Unadjusted Account Value is equal to the Account Value prior to the application of any Market Value Adjustment.

**Unit:** A share of participation in a Variable Option used to calculate your Unadjusted Account Value prior to the Annuity Date.

**Unit Value:** Each Variable Option has a separate value for its Units (this is analogous to, but not the same as, the share price of a mutual fund).

**Valuation Day:** Every day the New York Stock Exchange is open for trading or any other day the Securities and Exchange Commission requires mutual funds or unit investment trusts to be valued, not including any day: (1) trading on the NYSE is restricted; (2) an emergency, as determined by the SEC, exists making redemption or valuation of securities held in the Separate Account impractical; or (3) the SEC, by order, permits the suspension or postponement for the protection of security holders.

**Variable Option:** A division of the Registered Separate Account. The Variable Option also may be referred to in this prospectus and the Annuity as a Variable Sub-account or Sub-account.

------

[Back to **Table of Contents**](#TOC_956)

**we, us, our, the Company:** Pruco Life Insurance Company.

**Withdrawal Percentage:** The percentage applied to your Protected Withdrawal Value to determine your Annual Income Amount. The applicable Withdrawal Percentage will depend on the age at which you take your first Lifetime Withdrawal.

**you, your:** The Owner(s) shown in the Contract.

------

[Back to **Table of Contents**](#TOC_956)

**OVERVIEW OF THE CONTRACT**

------

**PRUDENTIAL PREMIER RETIREMENT VARIABLE ANNUITY X SERIES ("X SERIES")**<br>**PRUDENTIAL PREMIER RETIREMENT VARIABLE ANNUITY B SERIES ("B SERIES")**<br>**PRUDENTIAL PREMIER RETIREMENT VARIABLE ANNUITY L SERIES ("L SERIES")**<br>**PRUDENTIAL PREMIER RETIREMENT VARIABLE ANNUITY C SERIES ("C SERIES")**

**The Annuity referenced in this prospectus and applicable riders is no longer available for new sales or re-elections.**

**Purpose of the Contract**

The Annuity is a long-term investment designed for long-term retirement purposes because it allows you to accumulate retirement savings and also offers annuity payment options when you are ready to begin receiving income. This Annuity is a "flexible premium deferred annuity." It is called "flexible premium" because you have considerable flexibility in the timing and amount of premium payments. Generally, investors "defer" receiving annuity payments until after an Accumulation Period. This Annuity may be appropriate for investors accumulating retirement savings on a tax deferred basis and would seek guaranteed income through an annuity payment option.

**Phases of the Contract**

Each Annuity features two distinct phases—the Accumulation Period and the payout period. During the Accumulation Period your Account Value is allocated to one or more Investment Options. See "Investment Options" below. During the Payout Period (after Annuitization), you can elect to receive annuity payments (1) for life with a guaranteed minimum number of payments or (2) for a guaranteed number of payments. We currently make annuity payments available on a fixed basis. After Annuitization, the Death Benefits and optional benefits described in this prospectus will no longer apply. We reserve the right to make available other annuity options. See the [<u>"Annuity Period"</u>](#chapter_10-sect1_1_956) section of this prospectus.

**Investment Options**

*Variable Options:* The Variable Options we make available each invest in an underlying Portfolio whose share price generally fluctuates each day. The Variable Options do not provide any level of protection against negative returns. You are at risk of losing principal and any earnings if you allocate funds to a Portfolio.

*Market Value Adjustment Options:* The DCA Market Value Adjustment Options and Market Value Adjustment Options ("MVA Options") provide a fixed rate of return for a set period of time called a "Guarantee Period." An investment in the MVA Options may be appropriate for investors who seek a fixed rate of return on either all or a portion of their Account Value and do not need access to their money before the end of the Guarantee Period.

If you withdraw or transfer assets from an MVA Option more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested. You could lose a significant amount of money due to a negative Market Value Adjustment. The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals, Required Minimum Distributions, and withdrawals under any Optional Living Benefit), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled DCA transfers), and (v) the deduction of fees.

**Additional information about the Investment Options is provided in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **to the prospectus.**

**Contract Features**

*Credits:* Under the Premier Retirement X Series, we apply a "Purchase Credit" to your Annuity's Account Value with respect to certain Purchase Payments you make. The Purchase Credit is equal to a percentage of each Purchase Payment. The amount of the Purchase Credit depends on your age at the time the Purchase Payment is made and the number of years that the Annuity has been in force. Because the X Series Annuity grants Purchase Credits with respect to your Purchase Payments, the expenses of the X Series Annuity are higher than expenses for an Annuity without a Purchase Credit. In addition, the amount of the Purchase Credits that you receive under the X Series Annuity may be more than offset over time by the additional fees and charges associated with the Purchase Credit.

*Death Benefits:* The Annuity offers a basic Death Benefit that could protect your retirement savings if you die during a period of declining markets, depending on when you die. The Annuity also offers an optional death benefit that increases the level of protection for your Beneficiaries for an additional fee.

*Living Benefits:* We offered optional living benefits, for an additional charge, that guarantee your ability to take withdrawals for life as a percentage of an initial guaranteed benefit base, even if your Account Value falls to zero (unless it does so due to a withdrawal of Excess Income). We also offer optional benefits for an additional fee that guarantee your Account Value to a certain level after a period of years. As part of these benefits, you are required to invest only in certain permitted Investment Options. **For more information, please see** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_956)**.**

*Withdrawals:* You are allowed to withdraw a limited amount of money from your Annuity on an annual basis without any charges.

------

[Back to **Table of Contents**](#TOC_956)

**KEY INFORMATION**

------

---

| | |
|:---|:---|
| **Important Information You Should Consider About the Contract** | **Important Information You Should Consider About the Contract** |
| **Fees, Expenses, and Adjustments** | **Fees, Expenses, and Adjustments** |
|  Are there Charges or Adjustments for Early Withdrawals? | **Yes.**<br>Contingent Deferred Surrender Charges for B Series: If you withdraw money from the Contract within 7 years following your last Purchase Payment, you may be assessed a surrender charge. The maximum surrender charge is 7.0% of the Purchase Payment, and a surrender charge may be assessed up to 7 years after the last Purchase Payment under the Contract. If you make an early withdrawal, you could pay a surrender charge of up to $7,000 on a $100,000 withdrawal.<br>Contingent Deferred Surrender Charges for C Series: None.<br>Contingent Deferred Surrender Charges for L Series: If you withdraw money from the Contract within 4 years following your last Purchase Payment, you may be assessed a surrender charge. The maximum surrender charge is 7.0% of the Purchase Payment, and a surrender charge may be assessed up to 4 years after the last Purchase Payment under the Contract. If you make an early withdrawal, you could pay a surrender charge of up to $7,000 on a $100,000 withdrawal.<br>Contingent Deferred Surrender Charges for X Series: If you withdraw money from the Contract within 9 years following your last Purchase Payment, you may be assessed a surrender charge. The maximum surrender charge is 9.0% of the Purchase Payment, and a surrender charge may be assessed up to 9 years after the last Purchase Payment under the Contract. If you make an early withdrawal, you could pay a surrender charge of up to $9,000 on a $100,000 withdrawal. Credits may also be recaptured if you take an Early Withdrawal.<br>*Market Value Adjustments* for X, B, L, & C Series: If you withdraw or transfer assets from a Market Value Adjustment Option or DCA Market Value Adjustment Option more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested. You could lose up to 100% of your investment in a Market Value Adjustment Option or DCA Market Value Adjustment Option as a result of a negative Market Value Adjustment. For example, if you allocate $100,000 to a DCA Market Value Adjustment Option with a 12 month Guarantee Period and later withdraw the entire amount before the 12 months have ended, you could lose up to $100,000 of your investment. This loss will be greater if you also have to pay taxes and tax penalties. The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals and Required Minimum Distributions), (ii) surrenders, (iii) exercise of the right to cancel, and (iv) transfers (other than scheduled DCA transfers).<br>For more information on early withdrawal charges and Market Value Adjustments, please refer to the [<u>"Charges and</u> <u>Adjustments"</u>](#chapter_8-sect1_1_956) section of this prospectus. |
|  Are there Transaction Charges? | **Yes.**<br>In addition to surrender charges and Market Value Adjustments, charges may be applied to transfers (if more than 20 in a Contract Year), to requests for duplicate reports, or if state or local premium taxes are assessed.<br>For more information on transaction charges, please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_956) section of this prospectus. |

---

------

[Back to **Table of Contents**](#TOC_956)

---

| | | | |
|:---|:---|:---|:---|
| **Important Information You Should Consider About the Contract** | **Important Information You Should Consider About the Contract** | **Important Information You Should Consider About the Contract** | **Important Information You Should Consider About the Contract** |
| **Fees, Expenses, and Adjustments**  | **Fees, Expenses, and Adjustments**  | **Fees, Expenses, and Adjustments**  | **Fees, Expenses, and Adjustments**  |
|  Are there Ongoing Fees and Expenses? | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. | **Yes.**<br>The table below describes the fees and expenses that you may pay each year, depending on the Investment Options and optional benefits you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. |
|  Are there Ongoing Fees and Expenses? | **Annual Fee** | **Minimum** | **Maximum** |
|  Are there Ongoing Fees and Expenses? | **Base Contract Fees**<br>B Series<br>C Series<br>L Series<br>X Series | After 9<sup>th</sup> Contract Year<br>1.300%\*<br>1.300%\*<br>1.300%\*<br>1.300%\* | During first 9 Contract Years<br>1.332%\*<br>1.786%\*<br>1.731%\*<br>1.886%\* |
|  Are there Ongoing Fees and Expenses? | **Portfolio Company fees and** **expenses** | 0.28%\* | 4.77%\* |
|  Are there Ongoing Fees and Expenses? | **Optional benefits available for an** **additional charge**<br>(for a single optional benefit, if elected) | 0.40%\*<sup>1</sup> | 1.60%<sup>2</sup> |
|  Are there Ongoing Fees and Expenses? | \*Charge based on average daily net assets allocated to the Variable Options. Please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_956)section and [<u>"Appendix A"</u>](#chapter_18-sect1_1_956) for more information.<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options. This charge is the current charge for the Highest Anniversary Value Death Benefit, the least expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on a percentage of the greater of the Unadjusted Account Value and the Protected Withdrawal Value. This charge is the current charge for the Spousal Highest Daily Lifetime Income v2.0 with Highest Daily Death Benefit & the Spousal Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit, the most expensive optional benefits with an additional charge. | \*Charge based on average daily net assets allocated to the Variable Options. Please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_956)section and [<u>"Appendix A"</u>](#chapter_18-sect1_1_956) for more information.<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options. This charge is the current charge for the Highest Anniversary Value Death Benefit, the least expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on a percentage of the greater of the Unadjusted Account Value and the Protected Withdrawal Value. This charge is the current charge for the Spousal Highest Daily Lifetime Income v2.0 with Highest Daily Death Benefit & the Spousal Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit, the most expensive optional benefits with an additional charge. | \*Charge based on average daily net assets allocated to the Variable Options. Please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_956)section and [<u>"Appendix A"</u>](#chapter_18-sect1_1_956) for more information.<br><sup>1</sup>Charge based on a percentage of the net assets allocated to the Variable Options. This charge is the current charge for the Highest Anniversary Value Death Benefit, the least expensive optional benefit with an additional charge.<br><sup>2</sup>Charge based on a percentage of the greater of the Unadjusted Account Value and the Protected Withdrawal Value. This charge is the current charge for the Spousal Highest Daily Lifetime Income v2.0 with Highest Daily Death Benefit & the Spousal Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit, the most expensive optional benefits with an additional charge. |
|  Are there Ongoing Fees and Expenses? | Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges.<br>**This estimate assumes that you do not take withdrawals from the Contract, which could add surrender charges** **that substantially increase costs.** | Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges.<br>**This estimate assumes that you do not take withdrawals from the Contract, which could add surrender charges** **that substantially increase costs.** | Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges.<br>**This estimate assumes that you do not take withdrawals from the Contract, which could add surrender charges** **that substantially increase costs.** |
|  Are there Ongoing Fees and Expenses? | **Lowest Annual Cost**<br>**B Series -** **$1,618**<br>**C Series -** **$2,079**<br>**L Series -** **$2,028**<br>**X Series -** **$2,181** | **Highest Annual Cost**<br>**B Series -** **$8,958**<br>**C Series -** **$9,394**<br>**L Series -** **$9,346**<br>**X Series -** **$9,491** |  |
|  Are there Ongoing Fees and Expenses? | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Least expensive Portfolio fees and expenses<br> No optional benefits<br> No sales charges<br> No additional Purchase Payments, transfers or withdrawals | &nbsp;&nbsp;&nbsp; Assumes:<br> Investment of $100,000<br> 5% annual appreciation<br> Most expensive combination of optional benefits and Portfolio fees and expenses<br> No sales charges<br> No additional Purchase Payments, transfers or withdrawals |  |
|  Are there Ongoing Fees and Expenses? | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_956)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_956)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_956)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_956)sections of this prospectus. | For more information on ongoing fees and expenses, please refer to the "[<u>Fee Table</u>](#chapter_5-sect1_1_956)" and [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_956)sections of this prospectus. |

---

------

[Back to **Table of Contents**](#TOC_956)

---

| | |
|:---|:---|
| **Risks** | **Risks** |
|  Is there a Risk of Loss from Poor Performance? | **Yes.**<br>You can lose money by investing in the Contract. You can also lose value from Credits if they are recaptured by us.<br>For more information on the risk of loss from poor performance, please refer to the "[<u>Principal Risks of Investing in the Contract</u>](#chapter_6-sect1_1_956)" section of this prospectus. |
|  Is this a Short-Term Investment? | **No.**<br>The Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. The Contract is designed to provide benefits on a long-term basis. Because of the long-term nature of the Contract, you should consider whether the Contract is consistent with your financial situation and objectives.<br>Withdrawals may generally reduce the level of various optional benefit guarantees provided and may be subject to federal and state income taxes, as well as a 10% additional tax. If you withdraw or transfer assets from the Market Value Adjustment Options or DCA Market Value Adjustment Options more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested.<br>For more information on the short-term investment risks, please refer to the "[<u>Principal Risks of Investing in the Contract</u>](#chapter_6-sect1_1_956)" section of this prospectus. |
|  What are the Risks Associated with the Investment Options? | An investment in the Contract is subject to the risk of poor investment performance and can vary depending on the performance of the Investment Options you select. Each of the Investment Options available under the Contract, including the Variable Options and the Market Value Adjustment Options, has its own unique risks. You should review the Investment Options before making an investment decision. The Market Value Adjustment Options may be subject to a Market Value Adjustment, which can be negative, causing you to lose money.<br>For more information on the risks associated with Investment Options, please refer to the "[<u>Principal Risks of Investing in the Contract</u>](#chapter_6-sect1_1_956)" section of this prospectus. |
|  What are the Risks Related to the Insurance Company? | An investment in the Contract is subject to the risks related to the Company. Any obligations (including under any fixed allocation), guarantees, or benefits are subject to the claims-paying ability of the Company. More information about the Company, including its financial strength ratings, is available upon request. Such requests can be made toll-free at 1-888-PRU-2888.<br>For more information on the insurance company risks, please refer to the "[<u>Principal Risks of Investing in the Contract</u>](#chapter_6-sect1_1_956)" section of this prospectus. |
| **Restrictions** | **Restrictions** |
|  Are there Restrictions on the Investment Options? | &nbsp;&nbsp;&nbsp; **Yes.**<br>There are restrictions that may limit the investment options that you may choose, and there are limitations on the transfer of Account Value among investment options.<br> You may make twenty (20) free transfers between Investment Options each Contract Year. After the twentieth transfer in each Contract Year, we will charge $10 for each additional transfer.<br> You may only allocate Purchase Payments to the DCA Market Value Adjustment Options. You may not transfer Account Value into this program.<br> If you select an optional benefit, your selection of Investment Options may be limited.<br> The 6 or 12 Month DCA Program is not available in the States of Illinois, Iowa and Oregon.<br> The DCA Market Value Adjustment Options may not be available through all firms.<br> You may not have a 6 Month DCA Program running simultaneously with a 12 Month Program.<br> We reserve the right to:<br> Remove or substitute Portfolios as Investment Options or to close Variable Options to subsequent Purchase Payments on existing Annuities or Annuities purchased on or after specified dates,<br> Impose limitations on an investment professional's or investment advisor's ability to request financial transactions on your behalf,<br> Limit the number of transfers you may make or to impose a minimum transfer amount, and<br> Limit, suspend or reject any additional Purchase Payment at any time on a non-discriminatory basis. If we do so, you may no longer be able to increase the values associated with an optional living benefit or increase the amount of the death benefit under an optional death benefit through subsequent Purchase Payments. This would also impact your ability to make annual contributions to certain qualified Annuities.<br> Certain Investment Options may not be available through certain financial intermediaries. **See** [**<u>Appendix J</u>**](#chapter_27-sect1_1_956)**, "Financial Intermediary** **Variations" and the** [**<u>Cover Page</u>**](#chapter_1-sect1_1_956) **for additional information**.<br>**For more information on investment and transfer restrictions, please refer to the** [**<u>"Charges and Adjustments"</u>**](#chapter_8-sect1_1_956) **section,** [**<u>"Appendix A"</u>**](#chapter_18-sect1_1_956)**, the** [**<u>"Restrictions on Transfers Between Investment Options"</u>**](#chapter_9-sect1_6_956) **section, the** [**<u>"Principal Risks of Investing in the</u>** **<u>Contract"</u>**](#chapter_6-sect1_1_956) **section, the** [**<u>"General Description of Contracts"</u>**](#chapter_9-sect1_1_956) **section, and the** [**<u>"Financial Professional Permission to Forward</u>** **<u>Transaction Instructions"</u>**](#chapter_9-sect1_7_956) **section of** **this prospectus.** |

---

------

[Back to **Table of Contents**](#TOC_956)

---

| | |
|:---|:---|
| **Restrictions** | **Restrictions** |
|  Are there any Restrictions on Contract Benefits? | &nbsp;&nbsp;&nbsp; **Yes.**<br>There are restrictions and limitations relating to benefits offered under the Contract. Except as otherwise provided, Contract benefits may not be modified or terminated by the Company.<br> You may be able to obtain optional benefits, which may require additional charges. If you elect to purchase one or more optional benefits, we will deduct an additional charge on a daily or quarterly basis from your Account Value allocated to the Variable Options. The charge for each optional benefit is deducted in addition to the insurance charge due to the increased insurance risk associated with the optional benefits.<br> Any withdrawals that exceed limits specified by the terms of an optional benefit may affect the availability of the benefit by reducing the benefit by an amount greater than the value withdrawn, and/or could terminate the benefit.<br> For more information on optional benefits under the Contract, please refer to the "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)" section of this prospectus.<br>Certain Contract Benefits may not be available through certain financial intermediaries. **See** [**<u>Appendix J</u>**](#chapter_27-sect1_1_956)**, "Financial Intermediary** **Variations" and the** [**<u>Cover Page</u>**](#chapter_1-sect1_1_956) **for additional information**. |
| **Taxes** | **Taxes** |
|  What are the Contract's Tax Implications? | You should consult with a tax professional to determine the tax implications of an investment in and payments received under the Contract. There is no additional tax benefit if you purchase the Contract through a tax-qualified plan or individual retirement account (IRA). Withdrawals will be subject to ordinary income tax, and may be subject to a 10% additional tax for distributions taken prior to age 59½.<br>For more information on tax implications, please refer to the "[<u>Taxes</u>](#chapter_14-sect1_1_956)" section of this prospectus. |
| **Conflicts of Interest** | **Conflicts of Interest** |
|  How are Investment Professionals Compensated? | Investment professionals may receive compensation for selling the Contract to investors and may have a financial incentive to offer or recommend the Contract over another investment. This compensation is paid in the form of commissions, based on your investment in the Contract.<br>For more information on investment professional compensation, please refer to the Statement of Additional Information. |
|  Should I Exchange My Contract? | Some investment professionals may have a financial incentive to offer you a new Contract in place of the one you already own. You should only exchange your Contract if you determine after comparing the features, fees, and risks of both contracts, and any fees or penalties to terminate the existing Contract, that it is preferable to purchase the new Contract, rather than continue to own your existing Contract. This Contract is no longer sold.<br>For more information on exchanges, please refer to the Statement of Additional Information. |

---

------

[Back to **Table of Contents**](#TOC_956)

**FEE TABLE**

------

**The following tables describe the fees, expenses, and adjustments that you will pay when buying, owning, and surrendering or making** **withdrawals from an Investment Option or from the Annuity. Please refer to your Contract specifications page for information about the** **specific fees you will pay each year based on the options you have elected.**

**The first table describes the fees and expenses that you will pay at the time you buy the Contract, surrender or make withdrawals from the** **Contract, transfer Account Value between Investment Options, or request duplicate reports. State premium taxes may also be deducted.** **These fees and charges are described in more detail within this prospectus in the** [**<u>"Charges and Adjustments"</u>**](#chapter_8-sect1_1_956) **section.**

**For charges specific to contracts issued in Connecticut, please refer to** [**<u>Appendix B</u>**](#chapter_19-sect1_1_956) **- Special Contract Provisions for Annuities Issued in** **Certain States.**

---

| | |
|:---|:---|
|  **Transaction Expenses** | **Maximum** |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales Charge Imposed on Purchases |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred Sales Charge (as a percentage of each Purchase Payment)<sup>1</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B Series | 7.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; L Series | 7.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; X Series | 9.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; C Series |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Maximum Transfer Fee<sup>2</sup> | $10 |
| &nbsp;&nbsp;&nbsp;&nbsp; Additional Copies of Reports<sup>3</sup> | $50 |

---

1. The
 Deferred Sales Charges, if applicable, are assessed as a percentage of each applicable Purchase Payment and deducted upon surrender or
 withdrawal. For purposes
 of calculating this charge, we consider the year following the date of each Purchase Payment as Year 1. Purchase Payments are withdrawn
 on a "first-in,
 first-out" basis.

2. Currently,
 we deduct the fee after the 20 <sup>th</sup> transfer each Annuity Year. Transfers in connection with one of our systematic programs (such as rebalancing or the formula
 used with optional living benefits) and transfers we make to or from the Secure Value Account due to the election or termination of an
 optional living benefit
 do not count toward the 20 free transfers in an Annuity Year.

3. We
 do not currently assess this fee. However, we reserve the right to charge up to $50 for each additional report (i.e., confirmation statement
 or quarterly statement)
 you request.

The following Deferred Sales Charge percentages apply based on the year of the surrender or withdrawal:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Less than**<br>**1 Year** | **1 Year or** **more but** **less than**<br>**2 Years** | **2 Years or** **more but** **less than**<br>**3 Years** | **3 Years or** **more but** **less than**<br>**4 Years** | **4 Years or** **more but** **less than**<br>**5 Years** | **5 Years or** **more but** **less than**<br>**6 Years** | **6 Years or** **more but** **less than**<br>**7 Years** | **7 Years or** **more but** **less than**<br>**8 Years** | **8 Years or** **more but** **less than**<br>**9 Years** | **9 Years or** **more** |
| **B Series** | 7.0% | 7.0% | 6.0% | 6.0% | 5.0% | 5.0% | 5.0% | 0.0% |  |  |
| **L Series** | 7.0% | 7.0% | 6.0% | 5.0% | 0.0% |  |  |  |  |  |
| **X Series** | 9.0% | 9.0% | 9.0% | 9.0% | 8.0% | 8.0% | 8.0% | 5.0% | 2.5% | 0.0% |
| **C Series** | There is no CDSC for this Annuity | There is no CDSC for this Annuity | There is no CDSC for this Annuity | There is no CDSC for this Annuity | There is no CDSC for this Annuity | There is no CDSC for this Annuity | There is no CDSC for this Annuity | There is no CDSC for this Annuity | There is no CDSC for this Annuity | There is no CDSC for this Annuity |

---

**The next table describes the adjustments, in addition to any transaction expenses, that apply if all or a portion of the Account Value is** **removed from a Market Value Adjustment Option or DCA Market Value Adjustment Option before the expiration of a specified period.**

---

| | |
|:---|:---|
|  **Adjustments** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Market Value Adjustment Maximum Potential Loss (as a percentage of Unadjusted Account Value in the Market Value Adjustment Option or DCA Market Value Adjustment Option)<sup>1</sup> | 100% |

---

1. The
 following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment:
 (i) partial withdrawals (including systematic
 withdrawals and Required Minimum Distributions and withdrawals under any Optional Living Benefit), (ii) surrenders, (iii) exercise of
 the right to cancel, (iv) transfers (other than scheduled
 DCA transfers), and (v) the deduction of fees.

------

[Back to **Table of Contents**](#TOC_956)

The next table describes the maximum fees and expenses that you will pay each year during the time that you own the Annuity (not including Portfolio fees and expenses). Your current fees and expenses may be less than the maximum.

If you choose to purchase an optional benefit, you will pay additional charges, as shown below.

---

| | |
|:---|:---|
|  **Annual Annuity Expenses** | **Maximum** |
|  **Administrative Expenses<sup>1</sup>**<br>*(assessed annually on the Annuity's anniversary date or upon surrender)* | Lesser of $50 or 2% of Unadjusted Account Value<sup>2</sup> |
|  **Base Contract Expenses<sup>3</sup>**<br>*(based on the average daily net assets of the Variable Options) (excluding Settlement Service Charge):* <br>B Series<br>C Series<br>L Series<br>X Series | 1.30%<br>1.75% in Annuity Years 1-9; 1.30% in Annuity Years 9+<br>1.70% in Annuity Years 1-9; 1.30% in Annuity Years 9+<br>1.85% in Annuity Years 1-9; 1.30% in Annuity Years 9+ |
|  **Optional Benefit Fees and Charges** | **Optional Benefit Fees and Charges** |
|  **HIGHEST DAILY LIFETIME INCOME v2.1<sup>4</sup>**<br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value)  | 2.00% |
|  **SPOUSAL HIGHEST DAILY LIFETIME INCOME v2.1**<sup>4</sup><br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value)  | 2.00% |
|  **HIGHEST DAILY LIFETIME INCOME v2.1 WITH HIGHEST DAILY DEATH BENEFIT**<sup>4</sup><br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value)  | 2.00% |
|  **SPOUSAL HIGHEST DAILY LIFETIME INCOME v2.1 WITH HIGHEST DAILY DEATH** **BENEFIT**<sup>4</sup> <br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value) | 2.00% |
|  **HIGHEST DAILY LIFETIME INCOME 2.0**<br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value) | 2.00% |
|  **SPOUSAL HIGHEST DAILY LIFETIME INCOME 2.0<sup>5</sup>**<br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value)  | 2.00% |
|  **HIGHEST DAILY LIFETIME INCOME 2.0 WITH LIFETIME INCOME ACCELERATOR**<sup>5</sup><br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value) | 2.00% |
|  **HIGHEST DAILY LIFETIME INCOME 2.0 WITH HIGHEST DAILY DEATH BENEFIT**<sup>5</sup><br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value)  | 2.00% |
|  **SPOUSAL HIGHEST DAILY LIFETIME INCOME 2.0 WITH HIGHEST DAILY DEATH BENEFIT**<sup>5</sup><br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value) | 2.00% |
|  **HIGHEST DAILY LIFETIME INCOME<sup>6</sup>**<br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value) | 1.50% |
|  **SPOUSAL HIGHEST DAILY LIFETIME INCOME**<sup>6</sup><br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value) | 1.50% |
|  **HIGHEST DAILY LIFETIME INCOME WITH LIFETIME INCOME ACCELERATOR**<sup>6</sup><br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value)  | 2.00% |
|  **HIGHEST DAILY LIFETIME 6 PLUS INCOME<sup>7</sup>**<br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value)  | 1.50% |
|  **HIGHEST DAILY LIFETIME 6 PLUS INCOME WITH LIFETIME INCOME ACCELERATOR**<sup>7</sup><br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value) | 2.00% |
|  **SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS INCOME**<sup>7</sup><br>(based on greater of Unadjusted Account Value and Protected Withdrawal Value)  | 1.50% |
|  **GUARANTEED RETURN OPTION PLUS II (GRO PLUS II)**<br>(assessed as a percentage of the daily net assets of the Variable Options)  | .60% |
|  **HIGHEST DAILY GUARANTEED RETURN OPTION II (HD GRO II)**<br>(assessed as a percentage of the daily net assets of the Variable Options)  | .60% |
|  **HIGHEST ANNIVERSARY VALUE DEATH BENEFIT ("HAV")**<br>(assessed as a percentage of the daily net assets of the Variable Options)  | .40% |
|  **COMBINATION 5% ROLL-UP AND HAV DEATH BENEFIT**<sup>8</sup><br>(assessed as a percentage of the daily net assets of the Variable Options)  | .80% |

---

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

1. The
 Administrative Expense is referred to as "Annual Maintenance Fee" elsewhere in this Prospectus. The Administrative Expense
 is only applicable if the sum of the
 Purchase Payments at the time the fee is due is less than $100,000.

2. The
 Administrative Expense for the Beneficiary Continuation Option is the lesser of $30 or 2% of Unadjusted Account Value and is only applicable
 if Unadjusted Account
 Value is less than $25,000 at the time the fee is assessed.

3. The
 Base Contract Expense is referred to as the "insurance charge" elsewhere in this Prospectus. The Base Contract Expense does
 not apply if you are a Beneficiary
 under the Beneficiary Continuation Option. The Settlement Service Charge only applies if your Beneficiary elects the Beneficiary Continuation
 Option and is expressed
 as an annual charge. Beneficiaries are assessed a Settlement Service Charge equal to 1.00% which is an annual charge assessed on a daily basis against the
 assets allocated to the Variable Options. Please refer to the [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_956) section in this prospectus for more information about the
 Settlement Service Charge.

4. These
 benefits are no longer available for new business or post-issue election.

5. This
 benefit was offered from August 20, 2012 to February 24, 2013.

6. This
 benefit was offered from January 24, 2011 to August 19, 2012.

7. This
 benefit was offered from March 15, 2010 to January 23, 2011.

8. This
 benefit was offered from March 15, 2010 to August 19, 2012.

The next item shows the minimum and maximum total operating expenses charged by the Portfolios that you may pay periodically during the time that you own the Annuity. **Expenses shown may change over time and may be higher or lower in the future.** **A complete list of Portfolios available** **under the Annuity, including their annual expenses, may be found at** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **of this prospectus.**

---

| | | |
|:---|:---|:---|
|  **Annual Portfolio Expenses** | **Annual Portfolio Expenses** | **Annual Portfolio Expenses** |
|  (expenses that are deducted from Portfolio assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | *<u>Minimum</u>* | *<u>Maximum</u>* |
|  (expenses that are deducted from Portfolio assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | 0.28% | 4.77% |

---

**Example**

**This Example is intended to help you compare the cost of investing in the Variable Options with the cost of investing in other annuity** **contracts that offer variable options. These costs include Transaction Expenses, Annual Annuity Expenses, and Annual Portfolio Expenses.**

**The Example assumes all Account Value is allocated to the Variable Options. The Example does not reflect the Market Value Adjustment. Your** **costs could differ from those shown below if you invest in the Market Value Adjustment Options or DCA Market Value Adjustment Options.**

**The Example assumes that you invest $100,000 in the Variable Options for the time periods indicated. The Example also assumes that your** **investment has a 5% return each year and assumes the most expensive combination of Annual Portfolio Company Expenses and optional** **benefits available for an additional charge, which includes the Spousal Highest Daily Lifetime Income v2.0 benefit and Combo 5% Roll-Up &** **HAV Death Benefit. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **X SERIES** | **X SERIES** | **X SERIES** | **X SERIES** | **X SERIES** | **X SERIES** | **X SERIES** | **X SERIES** | **X SERIES** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $18491 | $36726 | $53006 | $84055 | $14040 | $24414 | $34194 | $54501 |
|  If you annuitize your Contract at the end of the applicable time period: | $9491 | $27726 | $45006 | $84055 | $5040 | $15414 | $26194 | $54501 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $9491 | $27726 | $45006 | $84055 | $5040 | $15414 | $26194 | $54501 |

---

------

[Back to **Table of Contents**](#TOC_956)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **C SERIES** | **C SERIES** | **C SERIES** | **C SERIES** | **C SERIES** | **C SERIES** | **C SERIES** | **C SERIES** | **C SERIES** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $9394 | $27470 | $44636 | $83614 | $4938 | $15119 | $25719 | $53741 |
|  If you annuitize your Contract at the end of the applicable time period: | $9394 | $27470 | $44636 | $83614 | $4938 | $15119 | $25719 | $53741 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $9394 | $27470 | $44636 | $83614 | $4938 | $15119 | $25719 | $53741 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **L SERIES** | **L SERIES** | **L SERIES** | **L SERIES** | **L SERIES** | **L SERIES** | **L SERIES** | **L SERIES** | **L SERIES** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $16346 | $33342 | $44450 | $83391 | $11887 | $20971 | $25481 | $53358 |
|  If you annuitize your Contract at the end of the applicable time period: | $9346 | $27342 | $44450 | $83391 | $4887 | $14971 | $25481 | $53358 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $9346 | $27342 | $44450 | $83391 | $4887 | $14971 | $25481 | $53358 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **B SERIES** | **B SERIES** | **B SERIES** | **B SERIES** | **B SERIES** | **B SERIES** | **B SERIES** | **B SERIES** | **B SERIES** |
|  | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming maximum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit | Assuming minimum fees and expenses of any of the portfolios available with the benefit |
|  | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs | 1 Yr | 3 Yrs | 5 Yrs | 10 Yrs |
|  If you surrender your Contract at the end of the applicable time period: | $15958 | $32313 | $47947 | $81572 | $11481 | $19783 | $28559 | $50231 |
|  If you annuitize your Contract at the end of the applicable time period: | $8958 | $26313 | $42947 | $81572 | $4481 | $13783 | $23559 | $50231 |
|  If you do not surrender or annuitize your Contract at the end of the applicable time period: | $8958 | $26313 | $42947 | $81572 | $4481 | $13783 | $23559 | $50231 |

---

------

[Back to **Table of Contents**](#TOC_956)

**PRINCIPAL RISKS OF INVESTING IN THE CONTRACT**

------

The risks identified below are the principal risks of investing in the Annuity. The Annuity may be subject to additional risks other than those identified and described in this prospectus.

**Risk of Loss:** You could lose money by investing in the Annuity, including your principal investment. An investment in the Annuity is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

**Risks Associated with Variable Options:** You take all the investment risk for amounts allocated to one or more of the Variable Options, which invest in Portfolios. If the Variable Options you select increase in value, then your Account Value goes up; if they decrease in value, your Account Value goes down. How much your Account Value goes up or down depends on the performance of the Portfolios in which your Variable Options invest. We do not guarantee the investment results of any Portfolio. An investment in the Annuity is subject to the risk of poor investment performance, and the value of your investment can vary depending on the performance of the selected Portfolio(s), each of which has its own unique risks. You should review the Portfolios before making an investment decision. We reserve the right to add, eliminate, substitute or combine Variable Options as Investment Options available under the Annuity or to close Variable Options to subsequent Purchase Payments on existing Annuities or for Annuities purchased on or after specified dates.

**Risks Associated with the Market Value Adjustment Options and DCA Market Value Adjustment Options:** We determine the interest rates credited to the Market Value Adjustment Options and DCA Market Value Adjustment Options in our sole discretion, subject to guaranteed minimums, and we may change the rates for new Guarantee Periods at any time. Any change in interest rates do not affect Guarantee Periods that began before the date of the change. There is a risk that the interest rates for new Guarantee Periods will be lower than the rates that were previously in effect. In addition, if you withdraw or transfer assets from a Market Value Adjustment Option or DCA Market Value Adjustment Option more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested. **You could lose up to 100%** **of your investment in a Market Value Adjustment Option or DCA Market Value Adjustment Option as a result of a negative Market Value** **Adjustment.** Generally, if yields are higher at the time of Market Value Adjustment application than they were at the beginning of the Guarantee Period, the Market Value Adjustment will be negative.

**Early Withdrawal Risk:** The Annuity is not a short-term investment vehicle and is not an appropriate investment for an investor who needs ready access to cash. The Annuity is designed to provide benefits on a long-term basis. Because of the long-term nature of the Annuity, you should consider whether the Annuity is consistent with your financial situation and objectives. Withdrawals under the Annuity, including partial withdrawals and a full surrender, may be subject to negative Market Value Adjustments and negative tax consequences. If you have elected certain Optional Benefits, a withdrawal may reduce the amount of your Benefit on more than a dollar-for-dollar basis. While the Annuity provides a Death Benefit, the amount of that benefit is subject to investment gains and losses and is reduced for any withdrawals you take.

**Insurance Company Risk:** No company other than Pruco Life has any legal responsibility to pay amounts that Pruco Life owes under the Annuity, including amounts allocated to the fixed allocations, which are supported by our general account and are subject to our claims-paying ability. Assets in the general account are not segregated for the exclusive benefit of any particular contract or obligation. General account assets are also available to our general creditors and for conducting routine business activities, such as the payment of salaries, rent and other ordinary business expenses. You should look to the financial strength of Pruco Life for its claims-paying ability. Pruco Life is also subject to risks related to disasters and other events, such as storms, earthquakes, fires, outbreaks of infectious diseases (such as COVID-19), utility failures, terrorist acts, political and social developments, and military and governmental actions. These risks are often collectively referred to as "business continuity" risks. These events could adversely affect Pruco Life and our ability to conduct business and process transactions. Although Pruco Life has business continuity plans, it is possible that the plans may not operate as intended or required and that Pruco Life may not be able to provide required services, process transactions, deliver documents or calculate values. It is also possible that service levels may decline as a result of such events.

**Possible Adverse Tax Consequences:** The tax considerations associated with the Annuity vary and can be complicated. The tax considerations discussed in this prospectus are general in nature and describe only federal income tax law (not state, local, foreign or other federal tax laws). Before making a Purchase Payment or taking other action related to your Annuity, you should consult with a qualified tax advisor for complete information and advice. For example, distributions from your Annuity are generally subject to ordinary income taxation on the amount of any investment gain unless the distribution qualifies as a non-taxable exchange or transfer. In addition, if you take a distribution prior to the taxpayer's age 59½, you may be subject to a 10% additional tax in addition to ordinary income taxes on any gain.

**Possible Fees on Access to Account Value:** We may apply fees if you access your Account Value during the Accumulation Period or surrender your Annuity. For example, in addition to possible tax consequences discussed above, you may incur fees for accessing your Account Value such as a Contingent Deferred Sales Charge, Annual Maintenance Fee, Tax Charge, and/or a charge for any optional benefit. In addition, we may assess a Market Value Adjustment for withdrawals from a fixed allocation.

**Credit Recapture:** For X Shares, in certain circumstances we may recapture any Credits applied to your Contract if you access your Account Value during the Accumulation Period or surrender your Annuity.

**Annuity Changes Risk:** We reserve the right to limit the number of transfers you may make or to impose a minimum transfer amount. We also reserve the right to add, eliminate, substitute or combine Variable Options as Investment Options available under the Annuity or to close Variable Options to subsequent Purchase Payments on existing Annuities or for Annuities purchased on or after specified dates. We may limit, suspend or reject any

------

[Back to **Table of Contents**](#TOC_956)

additional Purchase Payment at any time on a non-discriminatory basis. If we do so, you may no longer be able to increase the values associated with an optional living benefit or increase the amount of the death benefit under an optional death benefit through subsequent Purchase Payments. This would also impact your ability to make annual contributions to certain qualified Annuities. In addition, we may impose limitations on an investment professional's or investment advisor's ability to request financial transactions on your behalf.

**Cyber Security and Business Continuity Risks:** With the increasing use of technology and computer systems in general and, in particular, the Internet to conduct necessary business functions, the Company is susceptible to operational, information security and related risks. These risks, which are often collectively referred to as "cyber security" risks, may include deliberate or malicious attacks, as well as unintentional events and occurrences. These risks are heightened by our offering of increasingly complex products, such as those that feature automatic asset transfer or reallocation strategies, and by our employment of complex investment, trading and hedging programs. Cyber security is generally defined as the technology, operations and related protocol surrounding and protecting a user's computer hardware, network, systems and applications and the data transmitted and stored therewith. These measures ensure the reliability of a user's systems, as well as the security, availability, integrity, and confidentiality of data assets.

Deliberate cyber attacks can include, but are not limited to, gaining unauthorized access (including physical break-ins) to computer systems in order to misappropriate and/or disclose sensitive or confidential information; deleting, corrupting or modifying data; and causing operational disruptions. Cyber attacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites (in order to prevent access to computer networks). In addition to deliberate breaches engineered by external actors, cyber security risks can also result from the conduct of malicious, exploited or careless insiders, whose actions may result in the destruction, release or disclosure of confidential or proprietary information stored on an organization's systems.

The Company is also subject to risks related to disasters and other events, such as storms, earthquakes, fires, outbreaks of infectious diseases (such as COVID-19), utility failures, terrorist acts, political and social developments, and military and governmental actions. These risks are often collectively referred to as "business continuity" risks. These events could adversely affect the Company and our ability to conduct business and process transactions. Although the Company has business continuity plans, it is possible that the plans may not operate as intended or required and that the Company may not be able to provide required services, process transactions, deliver documents or calculate values. It is also possible that service levels may decline as a result of such events.

Cyber security events, disasters and similar events, whether deliberate or unintentional, that could impact the Company and Contract owners could arise not only in connection with our own administration of the Annuity, but also with entities operating the Annuity's Portfolios and with third-party service providers. Cyber security and other events affecting any of the entities involved with the offering and administration of the Annuity may cause significant disruptions in the business operations related to the Annuity. Potential impacts may include, but are not limited to, potential financial losses under the Annuity, your inability to conduct transactions under the Annuity and/or with respect to a Portfolio, an inability to calculate unit values with respect to the Annuity and/or the net asset value ("NAV") with respect to a Portfolio, and disclosures of your personal or confidential account information.

In addition to direct impacts to you, cyber security and other events described above may result in adverse impacts to the Company, including regulatory inquiries, regulatory proceedings, regulatory and/or legal and litigation costs, and reputational damage. Costs incurred by the Company may include reimbursement and other expenses, including the costs of litigation and litigation settlements and additional compliance costs. Considerable expenses also may be incurred by the Company in enhancing and upgrading computer systems and systems security following a cyber security failure or responding to a disaster or similar event. The rapid proliferation of technologies, as well as the increased sophistication and activities of organized crime, hackers, terrorists, and others continue to pose new and significant cyber security threats. In addition, the global spread of COVID-19 has caused the Company and its service providers to implement business continuity plans, including widespread use of work-from-home arrangements. Although the Company, our service providers, and the Portfolios offered under the Annuity may have established business continuity plans and risk management systems to mitigate risks, there can be no guarantee or assurance that such plans or systems will be effective, or that all risks that exist, or may develop in the future, have been completely anticipated and identified or can be protected against. Furthermore, the Company cannot control or assure the efficacy of the cyber security and business continuity plans and systems implemented by third-party service providers, the Portfolios, and the issuers in which the Portfolios invest.

The military invasion of Ukraine initiated by Russia in February 2022 and the resulting response by the United States and other countries have led to economic disruptions, as well as increased volatility and uncertainty in the financial markets. It is not possible to predict the ultimate duration and scope of the conflict, or the future impact on U.S. and global economies and financial markets.

**Artificial Intelligence Risk:** In addition to the cyber security risks described above, the development, adoption and use of AI, including generative artificial intelligence ("Generative AI"), by us and by third parties on whom we rely may increase existing operational risks or create new operational risks that we are not currently anticipating. AI technologies offer potential benefits in areas such as customer service personalization and process automation, and we expect to use AI and Generative AI to help deliver products and services and support critical functions. We also expect third parties on whom we rely to do the same. There are significant risks involved in developing and deploying AI, and there can be no assurance that its use will enhance our products or services or be beneficial to our business, including our efficiency or profitability. The risk that AI and Generative AI may be misused is increased by the relative newness of the technology, the speed at which it is being adopted, and the lack of laws, regulations or standards governing its use. Such misuse could expose the Company to legal or regulatory risk, damage customer relationships or cause reputational harm. Further, our ability to continue to develop and efficiently deploy AI technologies depends on access to specific third-party equipment and other physical infrastructure, such as processing hardware and network capacity, the availability and pricing of which is difficult to control, especially in a highly competitive environment. Our competitors may also adopt AI or Generative AI more quickly or more effectively than we do, which could cause competitive harm. Because the

------

[Back to **Table of Contents**](#TOC_956)

Generative AI technology is so new, some of the potential risks of Generative AI are currently unknowable.

------

[Back to **Table of Contents**](#TOC_956)

**DESCRIPTION OF INSURANCE COMPANY, REGISTERED SEPARATE ACCOUNT, AND INVESTMENT** **OPTIONS**

------

**WHO IS PRUCO LIFE?**

The Contract is issued by Pruco Life Insurance Company located at 751 Broad Street, Newark, NJ 07102-3777. Pruco Life is obligated to pay all amounts promised to investors under the Contract, subject to its financial strength and claims-paying ability.

Pruco Life is a stock life insurance company organized in 1971 under the laws of the State of Arizona. It is licensed to sell life insurance and annuities in the District of Columbia, Guam and in all states except New York. Pruco Life is a wholly-owned subsidiary of The Prudential Insurance Company of America ("Prudential"), a New Jersey stock life insurance company that has been doing business since 1875. Prudential is a direct wholly-owned subsidiary of Prudential Financial, Inc. ("Prudential Financial"), a New Jersey insurance holding company. No company other than Pruco Life has any legal responsibility to pay amounts that Pruco Life owes under its annuity contracts. Among other things, this means that where you participate in an optional living benefit or death benefit and the value of that benefit exceeds your current Account Value, you would rely solely on the ability of Pruco Life to make payments under the benefit out of its own assets. As Pruco Life's ultimate parent, Prudential Financial, however, exercises significant influence over the operations and capital structure of Pruco Life.

Pursuant to the delivery obligations under Section 5 of the Securities Act of 1933 and Rule 159 thereunder, we deliver this prospectus to current contract owners that reside outside of the United States. In addition, we may not market or offer benefits, features or enhancements to prospective or current contract owners while outside of the United States.

**Rule 12h-7**

With respect to the offering of Index Strategies, the Company relies on the exemption provided by Rule 12h-7 under the Securities Exchange Act of 1934 from the requirement to file reports pursuant to Section 15(d) of that Act.

**Claims of Creditors**

To the extent permitted by law, no payment or value under this Annuity is subject to the claims of your creditors or those of any other Owner, any Annuitant, or any Beneficiary.

**Deferral of Transactions**

We may defer any annuity payment for a period not to exceed the lesser of 6 months or the period permitted by law. If we defer a distribution or transfer from any annuity payout for more than thirty days, we will pay interest as required by state law. We may defer any distribution from any Allocation Option or any transfer from Allocation Options for a period not to exceed seven calendar days from the date the transaction is affected.

**WHAT ARE THE SEPARATE ACCOUNTS?**

The Separate Accounts are where Pruco Life sets aside and invests the assets supporting the Annuity. The assets of each Separate Account are held in the name of Pruco Life, and legally belong to us. We will maintain assets in each Separate Account with a total market value at least equal to the cash Surrender Value and other liabilities we must maintain related to the Annuity obligations supported by such assets. The obligations under the Annuity are those of Pruco Life, which is the issuer of the Annuity and the depositor of the Separate Accounts. More detailed information about Pruco Life, including its audited financial statements, is provided in the Statement of Additional Information.

**Pruco Life Insurance Company Flexible Premium Variable Annuity Account**

The assets supporting obligations based on allocations to the Variable Options are held in sub-accounts of Pruco Life Insurance Company Flexible Premium Variable Annuity Account, also referred to as "Pruco Life Variable Annuity Account". Pruco Life Variable Annuity Account assets that are held in support of the Variable Option are kept separate from all our other assets and may not be chargeable with liabilities arising out of any other business we may conduct. Thus, income, gains and losses from assets allocated to Pruco Life Variable Annuity Account are credited to or charged against Pruco Life Variable Annuity Account, without regard to other income, gains or losses of Pruco Life or any other of our Separate Accounts.

Pruco Life Variable Annuity Account was established by us pursuant to Arizona law on June 16, 1995. Pruco Life Variable Annuity Account also holds assets of other annuities issued by us with values and benefits that vary according to the investment performance of Pruco Life Variable Annuity Account.

Pruco Life Variable Annuity Account consists of multiple Variable Options. Each Variable Option invests only in a single mutual fund or mutual fund portfolio. The name of each Variable Option generally corresponds to the name of the Portfolio. Each Variable Option in Pruco Life Variable Annuity Account may have several different Unit Prices to reflect the Insurance Charge, Distribution Charge (when applicable) and the charges for any optional benefits that are offered under the Annuity issued by us through Pruco Life Variable Annuity Account. Pruco Life Variable Annuity Account is registered with the SEC under the Investment Company Act of 1940 ("Investment Company Act") as a unit investment trust, which is a type of investment company.

------

[Back to **Table of Contents**](#TOC_956)

The SEC does not supervise investment policies, management or practices of Pruco Life Variable Annuity Account. We may offer new Variable Options, eliminate Variable Options, or combine Variable Options at our sole discretion. We may also close Variable Options to subsequent Purchase Payments on existing annuities or close Variable Options for annuities purchased on or after specified dates.

In addition to rights that we specifically reserve elsewhere in this prospectus, we reserve the right to perform any or all of the following:

• offer
 new Variable Options, eliminate Variable Options, substitute Variable Options or combine Variable Options;

• close
 Variable Options to subsequent Purchase Payments on existing Annuities or close Variable Options for Annuities purchased on or after
 specified dates;

• combine
 the Separate Account with separate accounts;

• deregister
 the Separate Account under the Investment Company Act of 1940;

• manage
 the Separate Account as a management investment company under the Investment Company Act of 1940 or in any other form permitted
 by law;

• make
 changes required by any change in the federal securities laws, including, but not limited to, the Securities Act of 1933, the Securities Exchange Act of 1934,
 the Investment Company Act of 1940, or any other changes to the Securities and Exchange Commission's interpretation
 thereof;

• establish
 a provision in the Annuity for federal income taxes if we determine, in our sole discretion, that we will incur a tax as the result of the operation of
 the Separate Account;

• make
 any changes required by federal or state laws with respect to annuity contracts; and

• to
 the extent dictated by any underlying Portfolio, impose a redemption fee or restrict transfers within any Variable Option

We will first notify you and receive any necessary SEC and/or state approval before making such a change. If an underlying mutual fund is liquidated, we will ask you to reallocate any amount in the liquidated fund. If you do not reallocate these amounts, we will reallocate such amounts only in accordance with SEC pronouncements and only after obtaining an order from the SEC, if required. If investment in the Portfolios or a particular Portfolio is no longer possible, or in our discretion becomes inappropriate for purposes of the Annuity, or for any other rationale in our sole judgment, we may substitute another portfolio or investment Portfolios without your consent. The substituted portfolio may have different fees and expenses. Substitution may be made with respect to existing investments or the investment of future Purchase Payments, or both. However, we will not make such substitution without any required approval of the SEC and any applicable state insurance departments. In addition, we may close Portfolios to allocation of Purchase Payments or Account Value, or both, at any time in our sole discretion. We do not control the underlying mutual funds, so we cannot guarantee that any of those funds will always be available.

***Values and benefits based on allocations to the Variable Options will vary with the investment performance of the underlying mutual funds or*** ***fund Portfolios, as applicable. We do not guarantee the investment results of any Variable Option. Your Account Value allocated to the Variable*** ***Options may increase or decrease. You bear the entire investment risk. There is no assurance that the Account Value of your Annuity will*** ***equal or be greater than the total of the Purchase Payments you make to us.***

**The General Account:** Our general obligations and any guaranteed benefits under the Annuity are supported by our General Account and are subject to our claims paying ability. Assets in the General Account are not segregated for the exclusive benefit of any particular contract or obligation. General Account assets are also available to our general creditors and for conducting routine business activities, such as the payment of salaries, rent and other ordinary business expenses. The General Account is subject to regulation and supervision by the Arizona Department of Insurance and to the insurance laws and regulations of all jurisdictions where we are authorized to do business.

**INVESTMENT OPTIONS**

**Market Value Adjustment (MVA) Options**

We offer MVA Options of different durations during the Accumulation Period. When you allocate your Account Value to an MVA Option, you earn a fixed rate of interest as long as you remain invested for a set period of time called a Guarantee Period. Amounts in MVA Options are supported by our general account and subject to our claims paying ability.

The two types of MVA Options we offer are the Long-Term MVA Options and the DCA MVA Options. Currently, the Guarantee Periods we offer under the Long-Term MVA Options are 3, 5, 7, and 10 years. The DCA MVA Options are used with our 6 or 12-Month DCA Program. Under the Long-Term MVA Option, you earn interest over the Guaranteed Period selected. Under the DCA Market Value Adjustment Options, you earn interest over a 6 month or 12-month period, depending on the DCA MVA Option you select, while your Account Value in that option is systematically transferred monthly over the 6 or 12- month period to the Variable Options you have designated. A Guarantee Period begins when all or part of a Purchase Payment is allocated to a particular Guarantee Period. The MVA Options may not be available through all firms.

We credit interest to amounts held within the MVA Options at the applicable declared rates in effect when the Guaranteed Period begins. Under the DCA MVA Options, we credit such interest daily until the earliest of the following: (a) the date the entire amount in the DCA MVA Option has been transferred out; (b) the date the entire amount in the DCA MVA Option is withdrawn; (c) the date as of which any Death Benefit payable is determined, unless the Annuity is continued by a spouse Beneficiary (in which case we continue to credit interest under the program); or (d) the Annuity Date. Please note that the interest we credit is applied against a balance that declines as amounts are systematically transferred from the DCA MVA Option to the Variable

------

[Back to **Table of Contents**](#TOC_956)

Options. As a result, the dollar amount of interest you receive will decrease as transfers are made periodically to the Variable Options, you do not earn interest on the full amount you allocated initially to the DCA MVA Options for the 6-month or 12-month period, and the effective interest rate will therefore be less than the declared interest rate. The rates are an effective annual rate of interest.

The interest rate declared for an MVA Option will be no less than the minimum guaranteed interest rate. The minimum guaranteed rate that applies to you may vary depending on the state in which your Annuity was issued, but it will be shown on your Annuity specifications page and will never be less than (a) 1% for the MVA Options, or (b) the minimum rate required under state law or regulation; whichever is greater. Any change in interest rates does not affect MVA Options that were in effect before the date of the change. At the time that we confirm the allocation of your Purchase Payment to an MVA Option, we will advise you of the interest rate in effect. To inquire as to the current rates, please contact our Annuity Service Center at 1-888-PRU-2888 or at www.prudential.com/annuities.

If you withdraw or transfer assets from an MVA Option more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may be positive or negative. You could lose a significant amount of money due to a negative Market Value Adjustment. The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals, and Required Minimum Distributions), (ii) surrenders, (iii) exercise of the right to cancel, and (iv) transfers (other than scheduled DCA transfers), and (v) the deduction of fees. For more information about Market Value Adjustments, see [<u>"Charges and</u> <u>Adjustments"</u>](#chapter_8-sect1_1_956). A dollar cost averaging program does not assure a profit or protect against a loss. For a complete description of our 6 or 12- Month DCA Program, see the applicable section of this prospectus within [<u>"General Description of Contracts"</u>](#chapter_9-sect1_1_956).

**Variable Options**

Each Variable Option invests exclusively in a single Portfolio. The Account Value allocated to a Variable Option will vary based on the investment experience of the corresponding Portfolio in which it invests. There is a risk of loss of the entire amount invested. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for** **certain information regarding each Portfolio, including (i) its name, (ii) its type (e.g., money market fund, bond fund, balanced fund, etc.), (iii)** **its investment advisor and any sub-advisor, (iv) current expenses, and (v) performance.** There is no guarantee that any underlying Portfolio will meet its investment objective. Each Portfolio has issued a prospectus that contains more detailed information about the Portfolio. The prospectuses for the Portfolios can be found online at <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>. You can also request this information at no cost by calling 1-888- PRU-2888.

Each underlying Portfolio is registered as an open-end management investment company under the Investment Company Act. Shares of the underlying Portfolios are sold to Separate Accounts of life insurance companies offering variable annuity and variable life insurance products. The shares may also be sold directly to qualified pension and retirement plans.

**Voting Rights**

We are the legal owner of the shares of the underlying Portfolios in which the Variable Options invest. However, under current SEC rules, you have voting rights in relation to Account Value allocated to the Variable Options. If an underlying Portfolio requests a vote of shareholders, we will vote our shares based on instructions received from Owners with Account Value allocated to that Variable Option. Owners have the right to vote an amount equal to the number of shares attributable to their Annuity. If we do not receive voting instructions in relation to certain shares, we will vote those shares in the same manner and proportion as the shares for which we have received instructions. This voting procedure is sometimes referred to as "mirror voting" because, as indicated in the immediately preceding sentence, we mirror the votes that are actually cast, rather than decide on our own how to vote. We will also "mirror vote" shares that are owned directly by us or an affiliate (excluding shares held in the Separate Account of an affiliated insurer). In addition, because all the shares of a given Portfolio held within the Separate Account are legally owned by us, we intend to vote all of such shares when that underlying Portfolio seeks a vote of its shareholders. As such, all such shares will be counted towards whether there is a quorum at the underlying Portfolio's shareholder meeting and toward the ultimate outcome of the vote. Thus, under "mirror voting," it is possible that the votes of a small percentage of Owners who actually vote will determine the ultimate outcome.

We may, if required by state insurance regulations, disregard voting instructions if they would require shares to be voted so as to cause a change in the sub-classification or investment objectives of one or more of the available Variable Options or to approve or disapprove an investment advisory contract for a Portfolio. In addition, we may disregard voting instructions that would require changes in the investment policy or investment advisor of one or more of the Portfolios associated with the available Variable Options, provided that we reasonably disapprove such changes in accordance with applicable federal or state regulations. If we disregard Owner voting instructions, we will advise Owners of our action and the reasons for such action in the next available annual or semi-annual report.

We will furnish those Owners who have Account Value allocated to a Variable Option whose underlying Portfolio has requested a "proxy" vote with proxy materials and the necessary forms to provide us with their voting instructions. Generally, you will be asked to provide instructions for us to vote on matters such as changes in a fundamental investment strategy, adoption of a new investment advisory agreement, or matters relating to the structure of the underlying Portfolio that require a vote of shareholders. We reserve the right to change the voting procedures described above if applicable SEC rules change.

------

[Back to **Table of Contents**](#TOC_956)

**Similar Funds**

The Portfolios are not publicly traded mutual funds. They are only available as investment options in variable annuity contracts and variable life insurance policies issued by insurance companies, or in some cases, to participants in certain qualified retirement plans. However, some of the Portfolios available as Variable Options under the variable annuity contracts and variable life insurance policies are managed by the same advisor or subadvisor as a retail mutual fund of the same or similar name that the Portfolio may have been modeled after at its inception. Certain retail mutual funds may also have been modeled after a Portfolio. While the investment objective and policies of the retail mutual funds and the Portfolios may be substantially similar, the actual investments will differ to varying degrees. Differences in the performance of the funds can be expected, and in some cases could be substantial. You should not compare the performance of a publicly traded mutual fund with the performance of any similarly named Portfolio offered as a Variable Option.

**Material Conflicts**

In the future, it may become disadvantageous for Separate Accounts of variable life insurance and variable annuity contracts to invest in the same underlying Portfolios. Neither the companies that invest in the Portfolios nor the Portfolios currently foresee any such disadvantage. The Board of Directors for each Portfolio intends to monitor events in order to identify any material conflict between variable life insurance policy owners and variable annuity contract owners and to determine what action, if any, should be taken. Material conflicts could result from such things as:

(1. changes in state insurance law;

(2. changes in federal income tax law;

(3. changes in the investment management of any Variable Option; or

---

| | |
|:---|:---|
| (4. | differences between voting instructions given by variable life insurance policy owners and variable annuity contract owners. |

---

**Fees and Payments Received by Us**

As detailed below, we and our affiliates receive substantial payments from the underlying Portfolios and/or related entities, such as the Portfolios' advisors and subadvisors. Because these fees and payments are made to us and our affiliates, allocations you make to the underlying Portfolios benefit us financially. In selecting Portfolios available under the Annuity, we consider the payments that will be made to us.

We may receive Rule 12b-1 fees which compensate us and our affiliate, Prudential Annuities Distributors, Inc., for distribution and administrative services. These fees are paid by the underlying Portfolio out of each Portfolio's assets and are therefore borne by Owners.

We may also receive administrative services payments from the Portfolios or the advisors of the underlying Portfolios or their affiliates, which are referred to as "revenue sharing" payments. The maximum combined 12b-1 fees and revenue sharing payments we receive with respect to a Portfolio are generally equal to an annual rate of 0.55% of the average assets allocated to the Portfolio under the Annuity (in certain cases, however, this amount may be equal to an annual rate of 0.60% of the average assets allocated to the Portfolio). We expect to make a profit on these fees and payments and consider them when selecting the Portfolios available under the Annuity.

In addition, an advisor or subadvisor of a Portfolio or a distributor of the Annuity (not the Portfolios) may also compensate us by providing reimbursement, defraying the costs of, or paying directly for, among other things, marketing and/or administrative services and/or other services they provide in connection with the Annuity. These services may include, but are not limited to: sponsoring or co-sponsoring various promotional, educational or marketing meetings and seminars attended by distributors, wholesalers, and/or broker dealer firms' registered representatives, and creating marketing material discussing the Annuity, available options, and underlying Portfolios. The amounts paid depend on the nature of the meetings, the number of meetings attended by the advisor, subadvisor, or distributor, the number of participants and attendees at the meetings, the costs expected to be incurred, and the level of the advisor's, subadvisor's or distributor's participation. These payments or reimbursements may not be offered by all advisors, subadvisors, or distributors and the amounts of such payments may vary between and among each advisor, subadvisor, and distributor depending on their respective participation. We may also consider these payments and reimbursements when selecting the Portfolios available under the Annuity. For the annual period ended December 31, 2025, with regard to the total annual amounts that were paid (or as to which a payment amount was accrued) under the kinds of arrangements described in this paragraph, the amounts for any particular advisor, subadvisor or distributor ranged from $125.19 to $275,000. These amounts relate to all individual variable annuity contracts issued by Pruco Life or its affiliates, not only the Annuity covered by this prospectus.

In addition to the payments that we receive from underlying Portfolios and/or their affiliates, those same Portfolios and/or their affiliates may make payments to us and/or other insurers within the Prudential Financial group related to the offering of investment options within variable annuities or life insurance offered by different Prudential business units.

------

[Back to **Table of Contents**](#TOC_956)

**CHARGES AND ADJUSTMENTS**

------

The charges under each Annuity are designed to cover, in the aggregate, our direct and indirect costs of selling, administering and providing benefits under each Annuity. They are also designed, in the aggregate, to compensate us for the risks of loss we assume. If, as we expect, the charges that we collect from the Annuities exceed our total costs in connection with the Annuities, we will earn a profit. Otherwise we will incur a loss. For example, Pruco Life may make a profit on the insurance charge if, over time, the actual costs of providing the guaranteed insurance obligations and other expenses under an Annuity are less than the amount we deduct for the insurance charge. To the extent we make a profit on the insurance charge, such profit may be used for any other corporate purpose.

The rates of certain of our charges have been set with reference to estimates of the amount of specific types of expenses or risks that we will incur. In general, a given charge under the Annuity compensates us for our costs and risks related to that charge and may provide for a profit. However, it is possible that with respect to a particular obligation we have under this Annuity, we may be compensated not only by the charge specifically tied to that obligation, but also from one or more other charges we impose.

With regard to charges that are assessed as a percentage of the value of the Variable Options, please note that such charges are assessed through a reduction to the Unit Value of your investment in each Variable Option, and in that way reduce your Account Value. A "Unit" refers to a share of participation in a Variable Option used to calculate your Unadjusted Account Value prior to the Annuity Date.

**Contingent Deferred Sales Charge ("CDSC")**: The CDSC reimburses us for expenses related to sales and distribution of the Annuity, including commissions, marketing materials, other promotional expenses and, in the case of the X Series, the cost of providing a Purchase Credit. We may deduct a CDSC if you surrender your Annuity or when you make a partial withdrawal (except that there is no CDSC on the C Series Annuity). The CDSC is calculated as a percentage of your Purchase Payment (not including any Purchase Credit applied on the X Series) being surrendered or withdrawn. The CDSC percentage varies with the number of years that have elapsed since each Purchase Payment being withdrawn was made. If a withdrawal is taken on the day before the anniversary of the date that the Purchase Payment being withdrawn was made, then the CDSC percentage as of the next following year will apply.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Less than<br>1 Year | 1 Year<br>or more<br>but less<br>than<br>2 Years | 2 Years<br>or more<br>but less<br>than<br>3 Years | 3 Years<br>or more<br>but less<br>than<br>4 Years | 4 Years<br>or more<br>but less<br>than<br>5 Years | 5 Years<br>or more<br>but less<br>than<br>6 Years | 6 Years<br>or more<br>but less<br>than<br>7 Years | 7 Years<br>or more<br>but less<br>than<br>8 Years | 8 Years<br>or more<br>but less<br>than<br>9 Years | 9 Years<br>or more |
|  B Series | 7.0% | 7.0% | 6.0% | 6.0% | 5.0% | 5.0% | 5.0% | 0.0% |  |  |
|  L Series | 7.0% | 7.0% | 6.0% | 5.0% | 0.0% |  |  |  |  |  |
|  X Series | 9.0% | 9.0% | 9.0% | 9.0% | 8.0% | 8.0% | 8.0% | 5.0% | 2.5% | 0.0% |
|  C Series | There is no CDSC for this Annuity | There is no CDSC for this Annuity | There is no CDSC for this Annuity | There is no CDSC for this Annuity | There is no CDSC for this Annuity | There is no CDSC for this Annuity | There is no CDSC for this Annuity | There is no CDSC for this Annuity |  |  |

---

With respect to a partial withdrawal, we calculate the CDSC by assuming that any available Free Withdrawal amount is taken out first (see "[<u>Free</u> <u>Withdrawal Amounts</u>](#chapter_13-sect1_4_956)"). If the Free Withdrawal amount is not sufficient, we then assume that any remaining amount of a partial withdrawal is taken from Purchase Payments on a first-in, first-out basis, and subsequently from any other Account Value in the Annuity (including gains or purchase Credits), as described in the examples below.

**EXAMPLES**

These examples are designed to show you how the CDSC is calculated. They do not take into account any other fees and charges. The examples illustrate how the CDSC would apply to reduce your Account Value based on the timing and amount of your withdrawals. They also illustrate how a certain amount of your withdrawal, the "Free Withdrawal" amount, is not subject to the CDSC. The Free Withdrawal amount is equal to 10% of all Purchase Payments currently subject to a CDSC in each year and is described in more detail in "[<u>Surrenders and Withdrawals</u>](#chapter_13-sect1_1_956)".

Assume you purchase your B Series Annuity with a $75,000 initial Purchase Payment and you make no additional Purchase Payments for the life of your Annuity.

**<u>Example 1</u>**

Assume the following:

• two
 years after the purchase, your Unadjusted Account Value is $85,000 (your Purchase Payment of $75,000 plus $10,000 of investment gain);

• the
 Free Withdrawal amount is $7,500 ($75,000 ×.10);

• the
 applicable CDSC is 6%.

If you request a withdrawal of $50,000, $7,500 is not subject to the CDSC because it is the Free Withdrawal amount. The remaining amount of your withdrawal is subject to the 6% CDSC.

------

[Back to **Table of Contents**](#TOC_956)

*Gross Withdrawal or Net Withdrawal*. Generally, you can request either a gross withdrawal or a net withdrawal. If, however, you are taking your Annual Income Amount through our systematic withdrawal program, you will only be permitted to take that withdrawal on a gross basis. In a gross withdrawal scenario, you request a specific withdrawal amount with the understanding that the amount you actually receive is reduced by any applicable CDSC as well as any applicable tax withholding. In a net withdrawal scenario, you request a withdrawal for the exact dollar amount you want to receive after the deduction for any applicable CDSC as well as any applicable tax withholding. **This means that an amount greater than the amount of your** **requested net withdrawal will be deducted from your Unadjusted Account Value if there is any CDSC and/or tax withholding.** To make sure that you receive the net withdrawal amount, we first calculate the corresponding gross withdrawal amount, including the applicable CDSC and/or tax withholding. We then reduce the gross withdrawal by the Free Withdrawal amount before applying the applicable CDSC and/or tax withholding to the remaining amount. **As a result, in this example, the total withdrawal amount will be greater for a net withdrawal as compared to a gross** **withdrawal for the same dollar amount requested**.

• If
 you request a gross withdrawal of $50,000, and without any consideration to tax withholding the amount of the CDSC will reduce the amount
 of the withdrawal you receive. In this example, the CDSC would equal $2,550 (($50,000 – the Free Withdrawal amount of $7,500 =
 $42,500) ×.06 = $2,550). You would receive $47,450 ($50,000 – $2,550). To determine your remaining Unadjusted Account Value
 after your withdrawal,
 we reduce your initial Unadjusted Account by the amount of your requested withdrawal. In this case, your Unadjusted Account
 Value would be $35,000 ($85,000 – $50,000).

• If
 you request a net withdrawal of $50,000, and without any consideration to tax withholding, we first determine the gross withdrawal amount
 that will need to be withdrawn in order to provide the requested payment amount. We do this by first subtracting the Free Withdrawal
 amount from the net withdrawal amount and dividing the resulting amount by the result of 1 minus the surrender charge. Here is
 the calculation: $42,500/(1 – 0.06) = $45,212.77. This is the total amount to which the CDSC will apply. The amount of the CDSC
 is $2,712.77. Therefore,
 in order to for you to receive the full $50,000 amount as a net withdrawal, we will deduct a gross withdrawal amount of
 $52,712.77 from your Unadjusted Account Value, resulting in a remaining Unadjusted Account Value of $32,287.23.

**<u>Example 2</u>**

Assume the following:

• two
 years after the gross withdrawal described above, the Unadjusted Account Value is $48,500 ($35,000 of remaining Unadjusted Account
 Value plus $13,500 of investment gain);

• the
 Free Withdrawal amount is still $7,500 because no additional Purchase Payments have been made and the Purchase Payment is still subject
 to a CDSC; and

• the
 applicable CDSC in Annuity Year 4 is now 5%.

If you now take a second gross withdrawal of $10,000, $7,500 is not subject to the CDSC because it is the Free Withdrawal amount. The remaining $2,500 is subject to the 5% CDSC or $125 and you will receive $9,875.

No matter how you specify the withdrawal, any Market Value Adjustment resulting from withdrawals of amounts in the Market Value Adjustment options will not be applied to the amount you receive, but instead will be applied to your Unadjusted Account Value. See "[<u>Free Withdrawal Amounts</u>](#chapter_13-sect1_4_956)" for a discussion as to how this might affect an optional living benefit you may have. Please be aware that under the Highest Daily Lifetime Income v2.1, Highest Daily Lifetime Income 2.0, Highest Daily Lifetime Income and Highest Daily Lifetime 6 Plus suites of benefits: (a) for a gross withdrawal, if the amount requested exceeds the Annual Income Amount, the excess portion will be treated as Excess Income and (b) for a net withdrawal, if the amount you receive plus the amount of the CDSC and any applicable tax withholding deducted from your Unadjusted Account Value exceeds the Annual Income Amount, the excess portion will be treated as Excess Income (which has negative consequences under those benefits).

Upon surrender, we calculate a CDSC based on any Purchase Payments that remain in your Account Value on the date of the surrender (and after all other withdrawals have been taken). If you have made prior partial withdrawals or if your Account Value has declined in value due to negative Variable Option performance, the Purchase Payments used in this calculation may be greater than your remaining Account Value. Consequently, a higher CDSC may result than if we had calculated the CDSC as a percentage of remaining Account Value.

We may waive any applicable CDSC under certain circumstances described below in "[<u>Exceptions/Reductions to Fees and Charges</u>](#chapter_8-sect1_4_956)."

**Transfer Fee:** Currently, you may make 20 free transfers between Investment Options each Annuity Year. We may charge $10 for each transfer after the 20<sup>th</sup> in each Annuity Year. We do not consider transfers made as part of a Dollar Cost Averaging, Automatic Rebalancing or Custom Portfolio Program when we count the 20 free transfers. The Custom Portfolios Program refers to the Group II permitted Variable Options. **Please see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for** **further information regarding the Customer Portfolios Program.** All transfers made on the same day will be treated as one transfer. Renewals or transfers of Account Value from a Market Value Adjustment Option within the 30 days immediately preceding the end of its Guarantee Period are not subject to the transfer fee and are not counted toward the 20 free transfers. Similarly, transfers made under our 6 or 12 Month DCA Program and transfers made pursuant to a formula used with an optional benefit are not subject to the Transfer Fee and are not counted toward the 20 free transfers. Transfers made through any electronic method or program we specify are not counted toward the 20 free transfers. The transfer fee is deducted on a proportional basis from all Variable Options in which you maintain Account Value immediately subsequent to the transfer.

**Annual Maintenance Fee:** Prior to Annuitization, we deduct an Annual Maintenance Fee. The Annual Maintenance Fee is equal to $50 or 2% of your Unadjusted Account Value, whichever is less. This fee compensates us for administrative and operational costs in connection with the Annuity, such as maintaining our internal systems that support the Annuity. This fee will be deducted annually on the anniversary of the Issue Date of your Annuity or, if

------

[Back to **Table of Contents**](#TOC_956)

you surrender your Annuity during the Annuity Year, the fee is deducted at the time of surrender unless the surrender is taken within 30 days of the most recently assessed Annual Maintenance Fee. The fee is taken out first from the Variable Options on a proportional basis, and then from the Market Value Adjustment Options (if the amount in the Variable Options is insufficient to pay the fee). The Annual Maintenance Fee is only deducted if the sum of the Purchase Payments at the time the fee is deducted is less than $100,000. We do not impose the Annual Maintenance Fee upon Annuitization (unless Annuitization occurs on an Annuity anniversary), or the payment of a Death Benefit. For Beneficiaries that elect the Beneficiary Continuation Option, the Annual Maintenance Fee is the lesser of $30 or 2% of Unadjusted Account Value and is only assessed if the Unadjusted Account Value is less than $25,000 at the time the fee is due. Pursuant to state law, the amount of the Annual Maintenance Fee may differ in certain states.

**Tax Charge:** Some states, municipalities, and other jurisdictions charge premium taxes or similar taxes on annuities that we are required to pay. The amount of tax will vary from jurisdiction to jurisdiction and is subject to change. We currently deduct the Tax Charge from the Account Value upon Annuitization. The Tax Charge is designed to approximate the taxes that we are required to pay and is assessed as a percentage of the Account Value. The Tax Charge currently ranges up to 3.5%. We reserve the right to deduct the Tax Charge from Purchase Payments when received or from Surrender Value upon surrender. "Surrender Value" refers to the Account Value (which includes the effect of any Market Value Adjustment) less any applicable CDSC, any applicable tax charges, any charges assessable as a deduction from the Account Value for any optional living or death benefits provided by rider or endorsement, and any Annual Maintenance Fee. We may also assess a charge equal to any Company Taxes or other taxes which may be imposed against the Separate Accounts.

In calculating our corporate income tax liability, we may derive certain corporate income tax benefits associated with the investment of company assets, including Separate Account assets, which are treated as company assets under applicable income tax law. These benefits reduce our overall corporate income tax liability. Under current law, such benefits include foreign tax Credits and corporate dividend received deductions. We do not pass these tax benefits through to holders of the Separate Account annuity contracts because (i) the contract Owners are not the Owners of the assets generating these benefits under applicable income tax law and (ii) we do not currently include company income taxes in the Tax Charges you pay under the Annuity. We reserve the right to change these tax practices.

**Insurance Charge:** We deduct an insurance charge daily based on the annualized rate shown in the "[<u>Fee Table</u>](#chapter_5-sect1_1_956)" The charge is assessed against the assets allocated to the Variable Options. The insurance charge is the combination of the Mortality & Expense Risk Charge and the Administration Charge. The insurance charge is intended to compensate Pruco Life for providing the insurance benefits under each Annuity, including each Annuity's basic Death Benefit (as described in "[<u>Basic Death Benefit</u>](#chapter_11-sect1_11_956)") that, subject to the Annuity's terms and conditions, provides guaranteed benefits to your Beneficiaries even if your Account Value declines. The insurance charge also compensates us for the risk that persons we guarantee annuity payments to will live longer than our assumptions. The charge further compensates us for our administrative costs associated with providing the Annuity benefits, including preparation of the contract and prospectus, confirmation statements, annual account statements and annual reports, legal and accounting fees as well as various related expenses. Finally, the charge compensates us for the risk that our assumptions about the mortality risks and expenses under each Annuity are incorrect and that we have agreed not to increase these charges over time despite our actual costs. Each Annuity has a different insurance charge during the first 9 Annuity Years. However, for the L Series, X Series, and C Series, on the Valuation Day immediately following the 9<sup>th</sup> Annuity Anniversary, the insurance charge drops to 1.30% annually (the B Series insurance charge is a constant 1.30%). Please refer to the section entitled "[<u>Processing and Valuing Transactions</u>](#chapter_12-sect1_9_956)" for more information about how the Units are impacted when the insurance charge decreases to 1.30%.

**Charges for Optional Benefits:** For information about the benefits available under the Annuity and their corresponding charges, please refer to the section titled "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)" in this prospectus.

**Settlement Service Charge:** If your Beneficiary takes the death benefit under a Beneficiary Continuation Option, the insurance charge no longer applies. However, we then begin to deduct a Settlement Service Charge which compensates us for the cost of providing administrative services in connection with the Beneficiary Continuation Option. This charge is assessed daily against the assets allocated to the Variable Options and is equal to an annualized charge of 1%.

**Fees and Expenses Incurred by the Portfolios:** Each Portfolio incurs total annualized operating expenses comprised of an investment management fee, other expenses and any distribution and service (12b-1) fees and short sale expenses that may apply. These fees and expenses are assessed against each Portfolio's net assets, and reflected daily by each Portfolio before it provides Pruco Life with the net asset value as of the close of business each Valuation Day. **More detailed information about fees and charges can be found in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **to this prospectus and the prospectuses for** **the Portfolios located at** **<u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>** **.**

**Charge for Additional Reports:** We send any statements and reports required by applicable law or regulation to you at your last known address of record. You may request additional reports. We reserve the right to charge up to $50 for each such additional report.

------

[Back to **Table of Contents**](#TOC_956)

**MARKET VALUE ADJUSTMENT OPTION CHARGES AND ADJUSTMENTS**

No specific fees or expenses are deducted when determining the rates we credit to a Market Value Adjustment Option or DCA Market Value Adjustment Option. However, for some of the same reasons that we deduct the insurance charge against the Account Value allocated to the Variable Options, we also take into consideration mortality, expense, administration, profit, and other factors in determining the interest rates we credit to a Market Value Adjustment Option or DCA Market Value Adjustment Option.

**Market Value Adjustment:** If you withdraw or transfer assets from a Market Value Adjustment Option or DCA Market Value Adjustment Option more than 30 days prior to the end of the Guarantee Period, we will apply a Market Value Adjustment, which may increase or decrease your initial amount invested. You could lose up to 100% of your investment in a Market Value Adjustment Option or DCA Market Value Adjustment Option as a result of a negative Market Value Adjustment. The following transactions, when they occur more than 30 days prior to the end of the Guarantee Period, are subject to a Market Value Adjustment: (i) partial withdrawals (including systematic withdrawals, Required Minimum Distributions, and withdrawals under any Optional Living Benefit), (ii) surrenders, (iii) exercise of the right to cancel, (iv) transfers (other than scheduled DCA transfers), and (v) the deduction of fees.

The Market Value Adjustment is calculated at the time of the transaction by multiplying the Unadjusted Account Value of the Market Value Adjustment Option or DCA Market Value Adjustment Option (before the transaction is processed) by the Market Value Adjustment factor. The Market Value Adjustment factor is determined using a formula that takes into account (i) the difference between Constant Maturity Treasury rates established at the inception of the Market Value Adjustment Option or DCA Market Value Adjustment Option and at the time of calculation, (ii) the amount of time remaining in the Guarantee Period, and (iii) a Liquidity Factor of 0.25%. If you decide to Free Look your Annuity, we will not apply the Liquidity Factor. Generally, if yields are higher at the time of Market Value Adjustment application than they were at the beginning of the Guarantee Period, the Market Value Adjustment will be negative. Generally, if yields are lower at the time of Market Value Adjustment application than they were at the beginning of the Guarantee Period, the Market Value Adjustment will be positive.

A negative Market Value Adjustment will reduce your Account Value and Surrender Value on a dollar-for-dollar basis. A negative Market Value Adjustment could reduce the basic death benefit amount by an amount greater than the value withdrawn. See [<u>"Death Benefits"</u>](#chapter_11-sect1_9_956) for more information. A negative Market Value Adjustment could also cause the total withdrawal amount to exceed guarantees offered under the Optional Living Benefits, which could permanently reduce your future guarantees under the benefit. See [<u>"Benefits Available Under the Contract"</u>](#chapter_11-sect1_1_956) for more information.

Generally, the interest rates we offer for Market Value Adjustment Options and DCA Market Value Adjustment Options will reflect the investment returns available on the types of investments we make to support our fixed rate guarantees. The Market Value Adjustment is intended to protect us from losses on these investments when we must pay out amounts that are removed from a Market Value Adjustment Option or DCA Market Value Adjustment Option prior to the end of the Guarantee Period.

You may request a quote of the impact an early distribution would have on your Account Value by contacting our Service Center at 1-888-PRU-2888. Values fluctuate daily and the actual Market Value Adjustment applied at the time a transaction is processed may be more or less than the values quoted at the time of your call. Additional information about the calculation of the Market Value Adjustment, including the Market Value Adjustment formula and examples, can be found in the Statement of Additional Information. **Please refer to** [**<u>Appendix B</u>**](#chapter_19-sect1_1_956) **for state variations that may apply.**

**ANNUITY PAYMENT OPTION CHARGES**

If you select a fixed payment option upon Annuitization, the amount of each fixed payment will depend on the Unadjusted Account Value of your Annuity when you elected to annuitize. There is no specific charge deducted from these payments; however, the amount of each annuity payment reflects assumptions about our insurance expenses. Also, a tax charge may apply.

**EXCEPTIONS/REDUCTIONS TO FEES AND CHARGES**

We may reduce or eliminate certain fees and charges or alter the manner in which the particular fee or charge is deducted. For example, we may reduce the amount of any CDSC or the length of time it applies, reduce or eliminate the amount of the Annual Maintenance Fee or reduce the portion of the total insurance charge that is deducted as an Administration Charge. We will not discriminate unfairly between Annuity purchasers if and when we reduce any fees and charges.

------

[Back to **Table of Contents**](#TOC_956)

**GENERAL DESCRIPTION OF CONTRACTS**

------

**CHANGE OF OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS**

In general, you may change the Owner, Annuitant and Beneficiary designations by sending us a request in Good Order, which will be effective upon receipt at our Service Center. However, if the Annuity is held as a Beneficiary Annuity, the Owner may not be changed and you may not designate another Key Life upon which distributions are based. As of the Valuation Day we receive an ownership change, including an assignment, any automated investment or withdrawal programs will be canceled. The new Owner must submit the applicable program enrollment if they wish to participate in such a program. Where allowed by law, such changes will be subject to our acceptance. Any change we accept is subject to any transactions processed by us before we receive the notice of change at our Service Center. Some of the changes we will not accept include, but are not limited to:

• a
 new Owner subsequent to the death of the Owner or the first of any co-Owners to die, except where a spouse-Beneficiary has become the
 Owner as a result of an Owner's death;

• a
 new Annuitant subsequent to the Annuity Date if the annuity option includes a life contingency;

• a
 new Annuitant prior to the Annuity Date if the Owner is an entity;

• a
 new Owner such that the new Owner is older than the age for which we would then issue the Annuity as of the effective date of such change,
 unless the change of Owner is the result of spousal continuation;

• any
 permissible designation change if the change request is received at our Service Center after the Annuity Date;

• a
 new Owner or Annuitant that is a certain ownership type, including but not limited to corporations, partnerships, endowments, or grantor trusts with more
 than two grantors; and

• a
 new Annuitant for an Annuity issued to a grantor trust where the new Annuitant is not the oldest grantor of the trust.

In general, you may change the Owner, Annuitant, and Beneficiary designations as indicated above, and also may assign the Annuity. **We will allow** **changes of ownership and/or assignments only if the Annuity is held exclusively for the benefit of the Annuitant or Contingent Annuitant. We** **accept assignments of non-qualified Annuities only. We assume no responsibility for the validity or tax consequences of any change of** **ownership.**

**We reserve the right to reject any proposed change of Owner, Annuitant, or Beneficiary, as well as any proposed assignment of the Annuity.**

We will reject a proposed change where the proposed Owner, Annuitant, Beneficiary or assignee is any of the following:

• a
 company(ies) that issues or manages viatical or structured settlements;

• an
 institutional investment company;

• an
 Owner with no insurable relationship to the Annuitant or Contingent Annuitant (a "Stranger-Owned Annuity" or "STOA");
 or

• a
 change in designation(s) that does not comply with or that we cannot administer in compliance with Federal and/or state law.

**We will implement this right on a non-discriminatory basis and to the extent allowed by state law, but are not obligated to process your** **request within any particular time frame.**

**There are restrictions on designation changes when you have elected certain optional benefits. Please see** [**<u>Appendix B</u>**](#chapter_19-sect1_1_956) **for Special Contract** **Provisions for Annuities Issued in Certain States.**

**Death Benefit Suspension Upon Change of Owner or Annuitant.** If there is a change of Owner or Annuitant, the change may affect the amount of the Death Benefit. See the "[<u>Exceptions to the Amount of Death Benefit</u>](#chapter_11-sect1_10_956)" section for additional details.

**Spousal Designations**

If an Annuity is co-owned by spouses, we do not offer Joint Tenants with Rights of Survivorship (JTWROS). Both Owners would need to be listed as the primary Beneficiaries for the surviving spouse to maintain the contract unless you designate a different Beneficiary. Note that any division due to divorce will be treated as a withdrawal and the non-Owner spouse may then decide whether he or she would like to use the withdrawn funds to purchase a new Annuity that is then available to new contract Owners. Note that any division of your Annuity due to divorce will be treated as a withdrawal and CDSC may apply. If CDSC is applicable, it cannot be divided between the Owner and the non-Owner ex-spouses. The non-Owner ex-spouse may decide whether he or she would like to use the withdrawn funds to purchase a new Annuity that is then available to new contract Owners. Please consult with your tax advisor regarding your personal situation if you will be transferring or dividing your Annuity pursuant to a divorce.

The federal and state tax law provisions applicable to an opposite sex spouse will also apply to a same sex spouse. Please note that a civil union or registered domestic partnership is generally not recognized as a marriage.

Please consult with your tax or legal advisor before electing the Spousal Benefit for a civil union partner or domestic partner.

------

[Back to **Table of Contents**](#TOC_956)

**Contingent Annuitant**

Generally, if an Annuity is owned by an entity and the entity has named a Contingent Annuitant, the Contingent Annuitant will become the Annuitant upon the death of the Annuitant, and no Death Benefit is payable. Unless we agree otherwise, the Annuity is only eligible to have a Contingent Annuitant designation if the entity which owns the Annuity is (1) a plan described in Code Section 72(s)(5)(A)(i) (or any successor Code section thereto); (2) an entity described in Code Section 72(u)(1) (or any successor Code section thereto); or (3) a Custodial Account established to hold retirement assets for the benefit of the natural person Annuitant pursuant to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account").

Where the Annuity is held by a Custodial Account, the Contingent Annuitant will not automatically become the Annuitant upon the death of the Annuitant. Upon the death of the Annuitant, the Custodial Account will have the choice, subject to our rules, to either elect to receive the Death Benefit or elect to continue the Annuity. If the Custodial Account elects to continue the Annuity, the Death Benefit payable will equal the Death Benefit described in the Spousal Continuation section of the Death Benefits section of this prospectus. See "[<u>Spousal Continuation of Annuity</u>](#chapter_11-sect1_12_956)" for more information about how the Annuity can be continued by a Custodial Account, including the amount of the Death Benefit.

**TRANSFER AND REBALANCING PROGRAMS**

There are several programs we administer to help you manage your Account Value. We describe our current programs in this section.

**Dollar Cost Averaging Programs**

We offer Dollar Cost Averaging Programs during the Accumulation Period. In general, Dollar Cost Averaging allows you to systematically transfer an amount periodically from one Variable Option to one or more other Variable Options. You can choose to transfer earnings only, principal plus earnings or a flat dollar amount. You may elect a Dollar Cost Averaging program that transfers amounts monthly, quarterly, semi-annually, or annually from Variable Options (if you make no selection, we will effect transfers on a monthly basis). In addition, you may elect the 6 or 12 Month DCA Program described below.

There is no guarantee that Dollar Cost Averaging will result in a profit or protect against a loss in a declining Variable Option.

**6 or 12 Month Dollar Cost Averaging Program (The "6 or 12 Month DCA Program")**

The 6 or 12 Month DCA Program is subject to our rules at the time of election and may not be available in conjunction with other programs and benefits we make available. We may discontinue, modify or amend this program from time to time. The 6 or 12 Month DCA Program is not available in all states or with certain benefits or programs. **Please see** [**<u>Appendix B</u>**](#chapter_19-sect1_1_956) **for Special Contract Provisions for Annuities Issued in Certain States.**

**Criteria for Participating in the Program** 

• If
 you have elected to participate in the 6 or 12 Month DCA Program, your initial Purchase Payment will be applied to your chosen program.
 Each time you make an additional Purchase Payment, you will need to elect a new 6 or 12 Month DCA Program for that additional
 Purchase Payment. If you do not provide such instructions, we will allocate that additional Purchase Payment on a proportional basis
 to the Variable Options in which your Account Value is then allocated, excluding Variable Options to which you may not electively allocate
 Account Value. Additionally, if your initial Purchase Payment is funded from multiple sources (e.g., a transfer of assets/1035 exchange)
 then the total amount that you have designated to fund your annuity will be treated as the initial Purchase Payment for purposes
 of your participation in the 6 or 12 Month DCA Program.

• You
 may only allocate Purchase Payments to the DCA Market Value Adjustment Options. You may not transfer Account Value into this program.
 To institute a program, you must allocate at least $2,000 to the DCA Market Value Adjustment Options.

• As
 part of your election to participate in the 6 or 12 Month DCA Program, you specify whether you want 6 or 12 monthly transfers under the
 program. We then set the monthly transfer amount, by dividing the Purchase Payment you have allocated to the DCA Market Value Adjustment
 Options by the number of months. For example, if you allocated $6,000, and selected a 6 month DCA Program, we would transfer
 $1,000 each month (with the interest earned added to the last payment). We will adjust the monthly transfer amount if, during the transfer
 period, the amount allocated to the DCA Market Value Adjustment Options is reduced. In that event, we will re-calculate the amount
 of each remaining transfer by dividing the amount in the DCA Market Value Adjustment Option (including any interest) by the number
 of remaining transfers. If the recalculated transfer amount is below the minimum transfer required by the program (currently $100),
 we will transfer the remaining amount from the DCA Market Value Adjustment Option on the next scheduled transfer and terminate the
 program.

• We
 impose no fee for your participation in the 6 or 12 Month DCA Program.

• You
 may cancel the DCA Program at any time. If you do, we will transfer any remaining amount held within the DCA Market Value Adjustment
 Options according to your instructions, subject to any applicable Market Value Adjustment. If you do not provide any such instructions,
 we will transfer any remaining amount held in the DCA Market Value Adjustment Options on a proportional basis to the Variable
 Options in which you are invested currently, excluding any Variable Options to which you are not permitted to choose to allocate or
 transfer Account Value. If any such Variable Option is no longer available, we may allocate the amount that would have been applied to that Variable Option
 to the AST Government Money Market Variable Option, unless restricted due to benefit election.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• We
 Credit interest to amounts held within the DCA Market Value Adjustment Options at the applicable declared rates. We Credit such interest
 until the earliest of the following (a) the date the entire amount in the DCA Market Value Adjustment Option has been transferred out;
 (b) the date the entire amount in the DCA Market Value Adjustment Option is withdrawn; (c) the date as of which any Death Benefit payable
 is determined, unless the Annuity is continued by a spouse Beneficiary (in which case we continue to Credit interest under the program);
 or (d) the Annuity Date.

• The
 interest rate earned in a DCA Market Value Adjustment Option will be no less than the minimum guaranteed interest rate. We may, from
 time to time, declare new interest rates for new Purchase Payments that are higher than the minimum guaranteed interest rate. Please
 note that the interest rate that we apply under the 6 or 12 Month DCA Program is applied to a declining balance. Therefore, the dollar
 amount of interest you receive will decrease as amounts are systematically transferred from the DCA Market Value Adjustment Option
 to the Variable Options, and the effective interest rate earned will therefore be less than the declared interest rate.

**Details Regarding Program Transfers**

• Transfers
 made under this program are not subject to any Market Value Adjustment.

• Any
 partial withdrawals, transfers, or fees deducted from the DCA Market Value Adjustment Options will reduce the amount in the DCA Market
 Value Adjustment Options. If you have only one 6 or 12 Month DCA Program in operation, withdrawals, transfers, or fees may be deducted
 from the DCA Market Value Adjustment Options associated with that program. You may, however, have more than one 6 or 12 Month
 DCA Program operating at the same time (so long as any such additional 6 or 12 Month DCA Program is of the same duration). For
 example, you may have more than one 6 month DCA Program running, but may not have a 6 month Program running simultaneously with
 a 12 month Program.

• 6
 or 12 Month DCA transfers will begin on the date the DCA Market Value Adjustment Option is established (unless modified to comply with
 state law) and on each month following until the entire principal amount plus earnings is transferred. We do not count transfers under the 6 or 12 Month
 DCA Program against the number of free transfers allowed under your Annuity.

• The
 minimum transfer amount is $100, although we will not impose that requirement with respect to the final amount to be transferred under
 the program.

• If
 you are not participating in an optional benefit, we will make transfers under the 6 or 12 month DCA Program to the Variable Options that
 you specified upon your election of the Program. If you are participating in any optional benefit, we will allocate amounts transferred out of the DCA Market
 Value Adjustment Options in the following manner: (a) if you are participating in the Custom Portfolios Program, we will
 allocate to the Variable Options in accordance with the rules of that program (b) if you are not participating in the Custom Portfolios Program, we will
 make transfers under the 6 or 12 Month DCA Program to the Variable Options that you specified upon your election of the
 6 or 12 Month DCA Program, provided those instructions comply with the allocation requirements for the optional benefit and (c) whether
 or not you participate in the Custom Portfolios Program, no portion of our monthly transfer under the 6 or 12 Month DCA Program will
 be directed initially to the AST Investment Grade Bond Portfolio  used with the optional benefit (although the DCA Market Value Adjustment Option
 is treated as a "Permitted Variable Option" for purposes of transfers made by any predetermined mathematical formula associated
 with the optional benefit).

• If
 you are participating in an optional benefit and also are participating in the 6 or 12 Month DCA Program, and the predetermined mathematical
 formula under the benefit dictates a transfer from the Permitted Variable Options to the applicable AST Bond Portfolio, then the
 amount to be transferred will be taken entirely from the Variable Options, provided there is sufficient Account Value in those Variable Options to meet the
 required transfer amount. Only if there is insufficient Account Value in those Variable Options will an amount be transferred
 from the DCA Market Value Adjustment Options associated with the 6 or 12 Month DCA Program. Amounts transferred from the
 DCA Market Value Adjustment Options under the formula will be taken on a last-in, first-out basis, without the imposition of a Market Value Adjustment.

• If
 you are participating in one of our automated withdrawal programs (e.g., systematic withdrawals), we may include within that withdrawal program amounts held
 within the DCA Market Value Adjustment Options. If you have elected any optional living benefit, any withdrawals will
 be taken on a proportional basis from your Variable Options and the DCA Market Value Adjustment Options. Such withdrawals will be assessed
 any applicable Market Value Adjustment.

**Automatic Rebalancing Programs**

During the Accumulation Period, we offer Automatic Rebalancing among the Variable Options you choose. The "Accumulation Period" refers to the period of time from the Issue Date through the last Valuation Day immediately preceding the Annuity Date. You can choose to have your Account Value rebalanced monthly, quarterly, semi-annually, or annually. On the appropriate date, the Variable Options you choose are rebalanced to the allocation percentages you requested. With Automatic Rebalancing, we transfer the appropriate amount from the "overweighted" Variable Options to the "underweighted" Variable Options to return your allocations to the percentages you request. For example, over time the performance of the Variable Options will differ, causing your percentage allocations to shift. You may make additional transfers; however, the Automatic Rebalancing program will not reflect such transfers unless we receive instructions from you indicating that you would like to adjust the Automatic Rebalancing program. There is no minimum Account Value required to enroll in Automatic Rebalancing. All rebalancing transfers as part of an Automatic Rebalancing program are not included when counting the number of transfers each year toward the maximum number of free transfers. We do not deduct a charge for participating in

------

[Back to **Table of Contents**](#TOC_956)

an Automatic Rebalancing program. Participation in the Automatic Rebalancing program may be restricted if you are enrolled in certain other optional programs. Variable Options that are part of a systematic withdrawal program or Dollar Cost Averaging program will be excluded from an Automatic Rebalancing program.

If you are participating in an optional living benefit (such as Highest Daily Lifetime Income v2.1) that makes transfers under a predetermined mathematical formula, and you have elected Automatic Rebalancing, you should be aware that: (a) the AST Bond Portfolio used as part of the predetermined mathematical formula will not be included as part of Automatic Rebalancing and (b) the operation of the formula may result in the rebalancing not conforming to the percentage allocations that you specified originally as part of your Automatic Rebalancing program.

**MARKET VALUE ADJUSTMENT OPTIONS**

When you allocate your Account Value to a Market Value Adjustment Option, you earn a fixed rate of interest as long as you remain invested for a set period of time called a Guarantee Period. Amounts in Market Value Adjustment Options are supported by our general account and subject to our claims paying ability. Please see "[<u>Additional Information</u>](#chapter_17-sect1_1_956)" for additional information about our general account. There are two types of Market Value Adjustment Options available under each Annuity – the Long-Term Market Value Adjustment Options and the DCA Market Value Adjustment Options. If you elected an optional living or death benefit, only the DCA Market Value Adjustment Option is available to you.

**MARKET VALUE ADJUSTMENT**

With certain exceptions, if you transfer or withdraw Account Value from a Market Value Adjustment Option prior to the end of the applicable Guarantee Period, you will be subject to a Market Value Adjustment. We assess a Market Value Adjustment (whether positive or negative) upon:

• any
 surrender, partial withdrawal (including a systematic withdrawal, Medically Related Surrender, or a withdrawal program under Sections
 72(t) or 72(q) of the Code), or

• transfer
 out of a Market Value Adjustment Option made outside the 30 days immediately preceding the maturity of the Guarantee Period.
  We will NOT assess a Market Value Adjustment (whether positive or negative) in connection with any of the following:

• partial
 withdrawals made to meet Required Minimum Distribution requirements under the Code in relation to your Annuity or a required distribution
 if your Annuity is held as a Beneficiary Annuity, but only if the Required Minimum Distribution or required distribution from Beneficiary
 Annuity is an amount that we calculate and is distributed through a program that we offer;

• transfers
 or partial withdrawals from a Market Value Adjustment Option during the 30 days immediately prior to the end of the applicable Guarantee
 Period, including the Maturity Date of the Market Value Adjustment Option;

• transfers
 made in accordance with our 6 or 12 Month DCA Program;

• when
 a death benefit is determined;

• deduction
 of an Annual Maintenance Fee for the Annuity;

• Annuitization
 under the Annuity; and

• transfers
 made pursuant to a mathematical formula used with an optional living benefit.

**RESTRICTIONS ON TRANSFERS BETWEEN INVESTMENT OPTIONS**

During the Accumulation Period you may transfer Account Value between Investment Options subject to the restrictions outlined below. Transfers are not subject to taxation on any gain. We do not currently require a minimum amount in each Variable Option you allocate Account Value to at the time of any allocation or transfer. Although we do not currently impose a minimum transfer amount, we reserve the right to require that any transfer be at least $50.

Transfers under this Annuity consist of those you initiate or those made under a systematic program, such as the 6 or 12 Month DCA Program, another dollar cost averaging program, an automatic rebalancing program, or pursuant to a mathematical formula required as part of an optional benefit (e.g., Highest Daily Lifetime Income). The transfer restrictions discussed in this section apply only to transfers that you initiate, not any transfers under a program or the predetermined mathematical formula.

Once you have made 20 transfers among the Variable Options during an Annuity Year, we will accept any additional transfer request during that year only if the request is submitted to us in writing with an original signature and otherwise is in Good Order. For purposes of this 20 transfer limit, we (i) do not view a facsimile transmission or other electronic transmission as a "writing", (ii) will treat multiple transfer requests submitted on the same Valuation Day as a single transfer, and (iii) do not count any transfer that solely involves the Variable Option corresponding to the AST Government Money Market Variable Option or a Market Value Adjustment Option, or any transfer that involves one of our systematic programs, such as automated withdrawals.

Frequent transfers among Variable Options in response to short-term fluctuations in markets, sometimes called "market timing," can make it very difficult for a Portfolio manager to manage a Portfolio's investments. Frequent transfers may cause the Portfolio to hold more cash than otherwise necessary, disrupt management strategies, increase transaction costs, or affect performance. In light of the risks posed to Owners and other investors by frequent transfers, we reserve the right to limit the number of transfers in any Annuity Year for all existing or new Owners and to take the other actions discussed below. We also reserve the right to limit the number of transfers in any Annuity Year or to refuse any transfer request for an Owner or certain Owners if: (a) we believe that excessive transfer activity (as we define it) or a specific transfer request or group of transfer requests may have a detrimental effect on Unit Values or the share prices of the Portfolios; or (b) we are informed by a Portfolio (e.g., by its Portfolio manager) that the purchase or redemption of shares in the Portfolio must be restricted because the Portfolio believes the transfer activity to which such purchase and redemption relates would have a

------

[Back to **Table of Contents**](#TOC_956)

detrimental effect on the share prices of the affected Portfolio. Without limiting the above, the most likely scenario where either of the above could occur would be if the aggregate amount of a trade or trades represented a relatively large proportion of the total assets of a particular Portfolio. In furtherance of our general authority to restrict transfers as described above, and without limiting other actions we may take in the future, we have adopted the following specific restrictions:

• With
 respect to each Variable Option (other than the AST Government Money Market Variable Option), we track amounts exceeding a certain
 dollar threshold that were transferred into the Variable Option. If you transfer such amount into a particular Variable Option, and within
 30 calendar days thereafter transfer (the "Transfer Out") all or a portion of that amount into another Variable Option, then
 upon the Transfer
 Out, the former Variable Option becomes restricted (the "Restricted Variable Option"). Specifically, we will not permit subsequent transfers into the
 Restricted Variable Option for 90 calendar days after the Transfer Out if the Restricted Variable Option invests in a non-international
 Portfolio, or 180 calendar days after the Transfer Out if the Restricted Variable Option invests in an international Portfolio.
 For purposes of this rule, we (i) do not count transfers made in connection with one of our systematic programs, such as auto rebalancing
 or under a predetermined mathematical formula used with an optional living benefit; (ii) do not count any transfer that solely involves
 the AST Government Money Market Variable Option or a Market Value Adjustment Option; and (iii) do not categorize as a transfer the
 first transfer that you make after the Issue Date, if you make that transfer within 30 calendar days after the Issue Date. Even if an amount becomes restricted
 under the foregoing rules, you are still free to redeem the amount from your Annuity at any time.

• We
 reserve the right to effect transfers on a delayed basis for all Annuities. That is, we may price a transfer involving the Variable Options on the Valuation
 Day subsequent to the Valuation Day on which the transfer request was received. Before implementing such a practice, we
 would issue a separate written notice to Owners that explains the practice in detail.

If we deny one or more transfer requests under the foregoing rules, we will inform you or your financial professional promptly of the circumstances concerning the denial.

There are Owners of different variable annuity contracts that are funded through the same Separate Account that may not be subject to the above-referenced transfer restrictions and, therefore, might make more numerous and frequent transfers than Annuity Owners who are subject to such limitations. Finally, there are Owners of other variable annuity contracts or variable life contracts that are issued by Pruco Life as well as other insurance companies that have the same underlying mutual fund Portfolios available to them. Since some contract Owners are not subject to the same transfer restrictions, unfavorable consequences associated with such frequent trading within the underlying Portfolio (e.g., greater Portfolio turnover, higher transaction costs, or performance or tax issues) may affect all contract Owners. Similarly, while contracts managed by a financial professional are subject to the restrictions on transfers between Investment Options that are discussed above, if the financial professional manages a number of contracts in the same fashion unfavorable consequences may be associated with management activity since it may involve the movement of a substantial portion of an underlying Portfolio's assets which may affect all contract Owners invested in the affected options. Apart from jurisdiction-specific and contract differences in transfer restrictions, we will apply these rules uniformly (including contracts managed by a financial professional) and will not waive a transfer restriction for any Owner.

**Although our transfer restrictions are designed to prevent excessive transfers, they are not capable of preventing every potential occurrence** **of excessive transfer activity.** The Portfolios have adopted their own policies and procedures with respect to excessive trading of their respective shares, and we reserve the right to enforce any such current or future policies and procedures. The prospectuses for the Portfolios describe any such policies and procedures, which may be more or less restrictive than the policies and procedures we have adopted. Under SEC rules, we are required to: (1) enter into a written agreement with each Portfolio or its principal underwriter or its transfer agent that obligates us to provide to the Portfolio promptly upon request certain information about the trading activity of individual contract Owners (including an Annuity Owner's TIN number), and (2) execute instructions from the Portfolio to restrict or prohibit further purchases or transfers by specific Owners who violate the excessive trading policies established by the Portfolio. In addition, you should be aware that some Portfolios may receive "omnibus" purchase and redemption orders from other insurance companies or intermediaries such as retirement plans. The omnibus orders reflect the aggregation and netting of multiple orders from individual Owners of variable insurance contracts and/or individual retirement plan participants. The omnibus nature of these orders may limit the Portfolios in their ability to apply their excessive trading policies and procedures. In addition, the other insurance companies and/or retirement plans may have different policies and procedures or may not have any such policies and procedures because of contractual limitations. For these reasons, we cannot guarantee that the Portfolios (and thus Annuity Owners) will not be harmed by transfer activity relating to other insurance companies and/or retirement plans that may invest in the Portfolios.

A Portfolio also may assess a short-term trading fee (also referred to as "redemption fee") in connection with a transfer out of the Variable Option investing in that Portfolio that occurs within a certain number of days following the date of allocation to the Variable Option. Each Portfolio determines the amount of the short-term trading fee and when the fee is imposed. The fee is retained by or paid to the Portfolio and is not retained by us. The fee will be deducted from your Account Value, to the extent allowed by law. At present, no Portfolio has adopted a short-term trading fee.

**FINANCIAL PROFESSIONAL PERMISSION TO FORWARD TRANSACTION INSTRUCTIONS**

If you have provided the necessary authorization on the application for your Annuity, the individual who signed the application for your Annuity may forward instructions regarding the allocation of your Account Value, and request financial transactions involving Investment Options. We refer to this person as your "financial professional." You may have another person providing investment advisory services to you with respect to this Annuity and who you have separately authorized on the form we require to forward instructions to us regarding the allocation of your Account Value or certain financial transactions. Please be aware that if you authorize more than one person to provide investment instructions to us, we will follow all instructions received

------

[Back to **Table of Contents**](#TOC_956)

from authorized persons in the order in which we receive them. **If your financial professional or investment advisor has this authority, we deem** **that all such transactions that are directed by your financial professional or investment advisor, as applicable, with respect to your Annuity** **have been authorized by you.** You will receive a confirmation of any financial transaction involving the purchase or sale of Units of your Annuity. You must contact us immediately if and when you revoke such authority. We will not be responsible for acting on instructions from your financial professional or authorized investment advisor until we receive notification of the revocation of such person's authority. We may also suspend, cancel or limit these authorizations at any time. In addition, we may restrict the Investment Options available for transfers or allocation of Purchase Payments by such financial professional or investment advisor. We will notify you and your financial professional if we implement any such restrictions or prohibitions.

**Please Note:** Annuity contracts managed by your financial professional or investment advisor also are subject to the restrictions on transfers between Investment Options that are discussed in the section titled [<u>"Restrictions on Transfers Between Variable Options"</u>](#chapter_9-sect1_6_956). We may also require that your financial professional or investment advisor transmit all financial transactions using the electronic trading functionality available through our website (<u>www.prudential.com/annuities</u>). Limitations that we may impose on your financial professional or investment advisor under the agreement (e.g., a custodial agreement) do not apply to financial transactions requested by an Owner on his or her own behalf, except as otherwise described in this prospectus.

**It is your responsibility to arrange for the payment of the advisory fee charged by your investment advisor. Similarly, it is your responsibility** **to understand the advisory services provided by your investment advisor and the advisory fees charged for the services.**

***<u>For certain Broker Dealers</u>*** **<u>:</u>** If instructed by your Broker Dealer, we may allow your financial professional to effectuate withdrawals on your behalf. In the event you do not wish that your financial professional has this authority, please contact us immediately.

------

[Back to **Table of Contents**](#TOC_956)

**ANNUITY PERIOD**

------

Annuitization involves converting your Unadjusted Account Value to an annuity payment stream, the length of which depends on the terms of the applicable annuity option. Thus, once annuity payments begin, your death benefit, if any, is determined solely under the terms of the applicable annuity payment option, and you no longer participate in any optional living benefit (unless you have annuitized under that benefit). We currently make annuity options available that provide fixed annuity payments. Fixed annuity payments provide the same amount with each payment. Please refer to the "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)" section in this prospectus for a description of annuity options that are available when you elect one of the living benefits. You must annuitize your entire Account Value; partial Annuitizations are not allowed.

You have a right to choose your annuity start date, provided that it is no later than the first day of the calendar month next following the 95<sup>th</sup> birthday of the oldest of any Owner and Annuitant whichever occurs first ("Latest Annuity Date") and no earlier than the earliest permissible Annuity Date. If you do not request an earlier Annuity Date in writing, then your Annuity Date will be the Latest Annuity Date. You may choose one of the Annuity Options described below, and the frequency of annuity payments. Certain annuity options and/or periods certain may not be available, depending on the age of the Annuitant. If a CDSC is still remaining on your Annuity, any period certain must be at least 10 years (or the maximum period certain available, if life expectancy is less than 10 years). For qualified annuities, the period certain option may be limited to 10 years or less depending on the circumstances. You may change your choices before the Annuity Date.

If needed, we will require proof in Good Order of the Annuitant's age before commencing annuity payments. Likewise, we may require proof in Good Order that an Annuitant is still alive, as a condition of our making additional annuity payments while the Annuitant lives. We will seek to recover any life income annuity payments that we made after the death of the Annuitant.

If the initial annuity payment would be less than $100, we will not allow you to annuitize (except as otherwise specified by applicable law). Instead, we will pay you your current Unadjusted Account Value in a lump sum and terminate your Annuity. Similarly, we reserve the right to pay your Unadjusted Account Value in a lump sum, rather than allow you to annuitize, if the Surrender Value of your Annuity is less than $2000 on the Annuity Date.

Once annuity payments begin, you no longer receive benefits under any optional living benefit (unless you have annuitized under that benefit) or the Death Benefits described below.

Certain of these annuity options may be available as "settlement options" to Beneficiaries who choose to receive the Death Benefit proceeds as a series of payments instead of a lump sum payment.

Please note that you may not annuitize within the first three Annuity Years (except as otherwise specified by applicable law).

For Beneficiary Annuities, no annuity payments are available and all references to Annuity Date are not applicable.

**<u>Option 1</u>**

**Annuity Payments for a Period Certain:** Under this option, we will make equal payments for the period chosen (the "period certain") up to 25 years (but not to exceed the life expectancy of the Annuitant at the time the Annuity Option becomes effective, as computed under applicable Internal Revenue Service ("IRS") tables). The annuity payments may be made monthly, quarterly, semiannually, or annually, as you choose, for the fixed period. If the Owner dies before the end of period certain, payments will continue to any surviving Owner, or if there is no surviving Owner, the named Beneficiary or your estate if no Beneficiary is named for the remainder of the period certain.

**<u>Option 2</u>**

**Life Income Annuity Option with a Period Certain:** Under this option, income is payable monthly, quarterly, semiannually, or annually for the number of years selected (the "period certain"), subject to our then current rules, and thereafter until the death of the Annuitant. Should the Owner or Annuitant die before the end of the period certain, the remaining period certain payments are paid to any surviving Owner, or if there is no surviving Owner, the named Beneficiary, or your estate if no Beneficiary is named, until the end of the period certain. If an annuity option is not selected by the Annuity Date, this is the option we will automatically select for you. We will use a period certain of 10 years, or a shorter duration if the Annuitant's life expectancy at the time the Annuity Option becomes effective, as computed under applicable IRS tables, is less than 10 years. If in this instance the duration of the period certain is prohibited by applicable law, then we will pay you a lump sum in lieu of this option.

**Other Annuity Options We May Make Available**

For more information on other annuity options we may make available in the future please call 888-778-2888.

------

[Back to **Table of Contents**](#TOC_956)

**BENEFITS AVAILABLE UNDER THE CONTRACT**

------

**The following table summarizes information about the benefits available under the Annuity. Certain Contract Benefits may not be available** **through certain financial intermediaries. See** [**<u>Appendix J</u>**](#chapter_27-sect1_1_956)**, "Financial Intermediary Variations" and the** [**<u>Cover Page</u>**](#chapter_1-sect1_1_956) **for additional information.**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Purpose** | **Standard or** **Optional** | **Maximum Charge** | **Restrictions/Limitations** |
|  Highest Daily Lifetime Income v2.1<sup>1</sup> | Provides a guaranteed lifetime income stream through withdrawals during the life of the Annuitant. | Optional | 2.00% <br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Spousal Highest Daily Lifetime Income v2.1<sup>1</sup> | Provides a guaranteed lifetime income stream through withdrawals during the lives of the Annuitant and his or her spouse. | Optional | 2.00% <br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Highest Daily Lifetime Income 2.0 with Lifetime Income Accelerator<sup>1</sup> | Guarantees the ability to withdraw an amount equal to double the Annual Income Amount. **Please see** [**<u>Appendix E</u>**](#chapter_22-sect1_1_956) **for a complete** **description of this benefit.** | Optional | 2.00%<br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Highest Daily Lifetime 6 Plus Income (HD 6 PLUS)<sup>1</sup> | Guarantees your ability to withdraw amounts equal to a percentage of a guaranteed benefit base called the Protected Withdrawal Value. **Please see** [**<u>Appendix C</u>**](#chapter_20-sect1_1_956) **for a complete description of this** **benefit.** | Optional | 1.50%<br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Highest Daily Lifetime 6 Plus Income with Lifetime Income Accelerator<sup>1</sup> | Guarantees the ability to withdraw an amount equal to double the Annual Income Amount. **Please see** [**<u>Appendix C</u>**](#chapter_20-sect1_1_956) **for a complete** **description of this benefit.** | Optional | 2.00%<br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Spousal Highest Daily Lifetime 6 Plus Income<sup>1</sup> | The benefit is the spousal version of the Highest Daily Lifetime 6 Plus Income Benefit. **Please see** [**<u>Appendix C</u>**](#chapter_20-sect1_1_956) **for a complete description of this** **benefit.** | Optional | 1.50%<br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Highest Daily Lifetime Income<sup>1</sup> | Provides a guaranteed lifetime income stream through withdrawals during the life of the Annuitant. **Please see** [**<u>Appendix D</u>**](#chapter_21-sect1_1_956) **for a** **complete description of this benefit.** | Optional | 1.50%<br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Spousal Highest Daily Lifetime Income<sup>1</sup> | Provides a guaranteed lifetime income stream through withdrawals during the lives of the Annuitant and his or her spouse. **Please see** [**<u>Appendix D</u>**](#chapter_21-sect1_1_956) **for a complete description of this** **benefit.** | Optional | 1.50%<br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Highest Daily Lifetime Income with Lifetime Income Accelerator<sup>1</sup> | Guarantees the ability to withdraw an amount equal to double the Annual Income Amount. **Please see** [**<u>Appendix D</u>**](#chapter_21-sect1_1_956) **for a complete** **description of this benefit.** | Optional | 2.00%<br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Highest Daily Lifetime Incomev2.0<sup>1</sup> | Provides a guaranteed lifetime income stream through withdrawals during the life of the Annuitant. **Please see** [**<u>Appendix E</u>**](#chapter_22-sect1_1_956) **for a** **complete description of this benefit.** | Optional | 2.00%<br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Spousal Highest Daily Lifetime Income v2.0<sup>1</sup> | Provides a guaranteed lifetime income stream through withdrawals during the lives of the Annuitant and his or her spouse. **Please see** [**<u>Appendix E</u>**](#chapter_22-sect1_1_956) **for a complete description of this** **benefit.** | Optional | 2.00%<br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |

---

------

[Back to **Table of Contents**](#TOC_956)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Purpose** | **Standard or** **Optional** | **Maximum Charge** | **Restrictions/Limitations** |
|  Guaranteed Return Option Plus II (GRO Plus II)<sup>2</sup> | Guarantees a "return of premium" at a future date, while allowing you to allocate all or a portion of your Account Value to the Variable Options of your choice. | Optional | 0.60%<br>*(based on Variable Option net assets)* | Account Value subject to systematic transfers to and from Fixed Allocations. We may restrict the selection of certain Portfolios. **Please** **refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for** **Variable Option availability.** |
|  Highest Daily Guaranteed<br>Return Option II (HD GRO II)<sup>2</sup> | Guarantees a "return of premium" at a future date, while allowing you to allocate all or a portion of your Account Value to the Variable Options of your choice. | Optional | 0.60%<br>*(based on Variable Option net assets)* | Account Value subject to systematic transfers to and from Fixed Allocations. We may restrict the selection of certain Portfolios. **Please** **refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for** **Variable Option availability.** |
|  Minimum Death Benefit | Provides protection for your Beneficiary(ies) by ensuring that they do not receive less than your Account Value. | Standard | None. | None. |
|  Highest Anniversary Value Death Benefit ("HAV")<sup>3</sup> | Provides an enhanced level of protection for your Beneficiary(ies) by providing a death benefit equal to the greater of the basic Death Benefit or the Highest Anniversary Value. **Please see** [**<u>Appendix</u>** **<u>F</u>**](#chapter_23-sect1_1_956) **for a complete description of this benefit.** | Optional | 0.40%<br>*(based on Variable Option net assets)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Combination 5% Roll-Up and HAV Death Benefit<sup>1</sup> | Provides an enhanced level of protection for your Beneficiary(ies) by providing the greater of the Highest Anniversary Value Death Benefit and a 5% annual increase on Purchase Payments adjusted for withdrawals. **Please see** [**<u>Appendix F</u>**](#chapter_23-sect1_1_956) **for a** **complete description of this benefit.** | Optional | 0.80%<br>*(based on Variable Option net assets)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Highest Daily Lifetime Incomev2.1 with Highest Daily Death Benefit<sup>1</sup> | Provides a guaranteed lifetime income stream through withdrawals during the life of the Annuitant and a death benefit that locks in gains in your Account Value. | Optional | 2.00%<br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Spousal Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit<sup>1</sup> | Provides a guaranteed lifetime income stream through withdrawals during the lives of the Annuitant and his or her spouse, as well as a death benefit that locks in gains in your Account Value. | Optional | 2.00%<br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Highest Daily Lifetime Incomev2.0 with Highest Daily Death Benefit<sup>1</sup> | Provides a guaranteed lifetime income stream through withdrawals during the life of the Annuitant and a death benefit that locks in gains in your Account Value. **Please see** [**<u>Appendix E</u>**](#chapter_22-sect1_1_956) **for a** **complete description of this benefit.** | Optional | 2.00%<br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Spousal Highest Daily Lifetime Income v2.0 with Highest Daily Death Benefit<sup>1</sup> | Provides a guaranteed lifetime income stream through withdrawals during the lives of the Annuitant and his or her spouse, as well as a death benefit that locks in gains in your Account Value. **Please see** [**<u>Appendix E</u>**](#chapter_22-sect1_1_956) **for a complete** **description of this benefit.** | Optional | 2.00%<br>*(based on the greater of Unadjusted Account Value and PWV)* | You may not select certain Portfolios. **Please refer to** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for Variable** **Option availability.** |
|  Dollar Cost Averaging | Allows you to systematically transfer a percentage amount out of an Investment Option and into any other Variable Option(s). | Standard | None. | Minimum allocation requirements. |
|  Automatic Rebalancing | You can direct us to automatically rebalance your assets to return to your original allocation percentage or to a subsequent allocation percentage you select. | Standard | None. | None. |

---

1. These
 optional living benefits are no longer being offered for new elections or re-elections. This also means that if you currently have one
 of these benefits and elect to terminate it, you will not
 be permitted to re-elect it.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

2. Available
 only on Annuities purchases on or before January 24, 2011.

3. These
 benefits are no longer offered and must have been elected at the time that you purchased your Annuity.

**OPTIONAL LIVING BENEFITS**

**Overview**

Pruco Life offers different optional living benefits, for an additional charge, that can provide retirement income protection for Owners while they are alive. Optional benefits are not available if your Annuity is held as a Beneficiary Annuity. Notwithstanding the additional protection provided under the optional living benefits, the additional cost has the impact of reducing net performance of the Investment Options. Each optional benefit offers a distinct type of guarantee, regardless of the performance of the Variable Options, that may be appropriate for you depending on the manner in which you intend to make use of your Annuity while you are alive. We reserve the right to cease offering any of these optional living benefits. Depending on which optional living benefit you choose, you can have substantial flexibility to invest in the Variable Options while:

• protecting
 a principal amount from decreases in value due to investment performance;

• guaranteeing
 a minimum amount of growth to be used as the basis for lifetime withdrawals; or

• providing
 spousal continuation of certain benefits.

**The following "living benefits" are available only for Annuities issued with an application signed prior to January 24, 2011, subject to** **availability which may vary by firm.**

• Highest
 Daily Guaranteed Return Option II (HD GRO II)

• Guaranteed
 Return Option Plus II (GRO PLUS II)

**The following optional benefits will no longer be available for new business or post-issue election:**

We offered the following "living benefits" for post-issue election until December 31, 2020

• Highest
 Daily Lifetime Income v2.1

• Spousal
 Highest Daily Lifetime Income v2.1

• Highest
 Daily Lifetime Income v2.1 With Highest Daily Death Benefit

• Spousal
 Highest Daily Lifetime Income v2.1 With Highest Daily Death Benefit

We previously offered the following optional living benefits during the periods indicated.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp; Offered from August 20, 2012 to February 24, 2013:<br> Highest Daily Lifetime Income 2.0<br> Highest Daily Lifetime Income 2.0 with Lifetime Income Accelerator<br> Spousal Highest Daily Lifetime Income 2.0<br> Highest Daily Lifetime Income 2.0 With Highest Daily Death Benefit<br> Spousal Highest Daily Lifetime Income 2.0 with Highest Daily Death Benefit | &nbsp;&nbsp;&nbsp;&nbsp; Offered from January 24, 2011 to August 19, 2012:<br> Highest Daily Lifetime Income<br> Highest Daily Lifetime Income with Lifetime Income Accelerator<br> Spousal Highest Daily Lifetime Income<br> Offered from March 15, 2010 to January 23, 2011:<br> Highest Daily Lifetime 6 Plus Income<br> Highest Daily Lifetime 6 Plus Income with Lifetime Income Accelerator<br> Spousal Highest Daily Lifetime 6 Plus Income |

---

**Please see** [**<u>Appendix E</u>**](#chapter_22-sect1_1_956) **for information pertaining to the Highest Daily Lifetime Income 2.0 Suite of benefits;** [**<u>Appendix D</u>**](#chapter_21-sect1_1_956) **for information** **pertaining to the Highest Daily Lifetime Income Suite of benefits; and** [**<u>Appendix C</u>**](#chapter_20-sect1_1_956) **for information pertaining to the Highest Daily Lifetime 6** **Plus Suite of benefits.**

**Each living benefit requires your participation in a predetermined mathematical formula that may transfer your Account Value between the** **Variable Options you have chosen from among those we permit with the benefit (i.e., the "Permitted Variable Options" – see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **for** **lists of Permitted Variable Options available by optional benefit) and certain bond Portfolio Variable Options of AST.** The Highest Daily Lifetime Income v2.1 Suite of benefits, Highest Daily Lifetime Income 2.0 Suite of benefits, Highest Daily Lifetime Income Suite of benefits, and Highest Daily Lifetime 6 Plus Suite of benefits use one predetermined mathematical formula. GRO Plus II and HD GRO II each uses a separate and different predetermined mathematical formula. Under the predetermined mathematical formula used with the Highest Daily Lifetime Income v2.1, Highest Daily Lifetime Income 2.0, Highest Daily Lifetime Income and Highest Daily Lifetime 6 Plus Suite of benefits, your Account Value may be transferred between certain "Permitted Variable Options" and the AST Investment Grade Bond Portfolio. Under each predetermined mathematical formula used with GRO Plus II and HD GRO II, your Account Value may be transferred between certain "Permitted Variable Options" and a Variable Option within a group of bond Portfolio Variable Options differing with respect to their target Maturity Date. The formulas differ because of the nature of the underlying guarantees, and thus could result in different transfers of Account Value over time. Although not guaranteed, the optional living benefit investment requirements and the applicable formula are designed to reduce the difference between your Account Value and our liability under the benefit. Minimizing such difference generally benefits us by decreasing the risk that we will use our own assets to make benefit payments to you. The investment requirements and the formula do not guarantee any reduction in risk or volatility or any increase in Account Value. In fact, the investment requirements could mean that you miss appreciation opportunities in other Investment Options. The formula could mean that you miss opportunities for investment gains in your selected

------

[Back to **Table of Contents**](#TOC_956)

Variable Options while Account Value is allocated to the applicable AST bond Portfolio Variable Option, and there is no guarantee that the applicable AST bond Portfolio Variable Option will not lose value. We are not providing you with investment advice through the use of any of the formulas. In addition, the formulas do not constitute an investment strategy that we are recommending to you.

Here is a general description of each kind of living benefit that exists under this Annuity:

**Lifetime Guaranteed Minimum Withdrawal Benefits.** These benefits are designed for someone who wants a guaranteed lifetime income stream through withdrawals over time, rather than by annuitizing. Highest Daily Lifetime Income v2.1 is one example of this type of benefit. Please note that there is a Latest Annuity Date under your Annuity, by which date annuity payments must commence.

Under any of the Guaranteed Lifetime Withdrawal Benefits (i.e., Highest Daily Lifetime Income v2.1, Spousal Highest Daily Lifetime Income v2.1, Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit, and Spousal Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit), **withdrawals in excess of the Annual Income Amount, called "Excess Income," will impact the value of the benefit including a permanent** **reduction in future guaranteed amounts.**

**Guaranteed Minimum Accumulation Benefits.** The common characteristic of these benefits is that your Account Value is guaranteed to be at least a specified amount at some point in the future. Thus, these benefits may be appropriate for an annuity Owner who wants a guaranteed minimum Account Value after a specified number of years. Because the guarantee inherent in the benefit does not take effect until a specified number of years into the future, you should elect such a benefit only if your investment time horizon is of at least that duration. HD GRO II is one example of this type of benefit.

**Please refer to the benefit description that follows for a complete description of the terms, conditions and limitations of each optional benefit.** **See the chart in the** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **section of the prospectus for a list of Investment Options available and permitted with each benefit. We** **reserve the right to terminate a benefit if you allocate funds into non-permitted Investment Options.** You should consult with your financial professional to determine if any of these optional benefits may be appropriate for you based on your financial needs. As is the case with optional living benefits in general, the fulfillment of our guarantee under these benefits is dependent on our claims-paying ability.

**Termination of Existing Benefits and Election of New Benefits**

If you elect an optional living benefit, you may subsequently terminate the benefit and elect one of the then currently available benefits, subject to availability of the benefit at that time and our then current rules. There is currently no waiting period for such an election (you may elect a new benefit beginning on the next Valuation Day), provided that upon such an election, your Account Value must be allocated to the Investment Options permitted for the optional benefit. We reserve the right to waive, change and/or further limit availability and election frequencies in the future. Check with your financial professional regarding the availability of re-electing or electing a benefit and any waiting period. The benefit you re-elect or elect may not provide the same guarantees and/or may be more expensive than the benefit you are terminating. **Note that once you terminate an existing benefit, you lose the** **guarantees that you had accumulated under your existing benefit and will begin the new guarantees under the new benefit you elect based on** **your Unadjusted Account Value as of the date the new benefit becomes effective.** You should carefully consider whether terminating your existing benefit and electing a new benefit is appropriate for you. There is no guarantee that any benefit will be available for election at a later date.

**No Long-Term Market Value Adjustment Option is permitted if you elect any Optional Living Benefit. The DCA Market Value Adjustment** **Options are not available with GRO Plus II and HD GRO II. For Annuities purchased in Illinois, if you are currently invested in any Market Value** **Adjustment Options and/or are enrolled in the 6 or 12 Month DCA Program but wish to elect one of the Highest Daily Lifetime Income v2.1** **Suite of benefits, at the time you elect such Highest Daily Lifetime Income v2.1 benefit, you will have to cancel your enrollment in the 6 or 12** **Month DCA Program and reallocate your Account Value to the Investment Options permitted for such Highest Daily Lifetime Income v2.1** **benefit** **(see "**[**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **— Group I Allowable Benefit Allocations").**

The federal and state tax law provisions applicable to an opposite sex spouse will also apply to a same sex spouse. Please note that a civil union or registered domestic partnership is generally not recognized as a marriage.

Please consult with your tax or legal advisor before electing the Spousal Benefit for a civil union partner or domestic partner.

***HIGHEST DAILY LIFETIME INCOME v2.1 BENEFIT***

**The Highest Daily Lifetime Income v2.1 Benefit is no longer available for new business or post-issue election.**

Highest Daily Lifetime Income v2.1 is a lifetime guaranteed minimum withdrawal benefit, under which, subject to the terms of the benefit, we guarantee your ability to take a certain annual withdrawal amount for life. We reserve the right, in our sole discretion, to cease offering this benefit for new elections, at any time.

We offer a benefit that guarantees until the death of the single designated life (the Annuitant) the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Unadjusted Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the rest of your life provided that you do not take withdrawals of Excess Income that result in your Unadjusted Account Value being reduced to zero. We also permit you to designate the first withdrawal from your Annuity as a one-time "Non-Lifetime Withdrawal". You may wish to take a Non-Lifetime Withdrawal if you have an immediate need for access to your Account Value but do not wish to begin lifetime payments under the optional living benefit. All other partial withdrawals from your Annuity are considered a "Lifetime Withdrawal" under the benefit. Withdrawals are taken first

------

[Back to **Table of Contents**](#TOC_956)

from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Unadjusted Account Value is reduced to zero (for any reason other than due to partial withdrawals of Excess Income). Highest Daily Lifetime Income v2.1 may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You are not required to take withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. An integral component of Highest Daily Lifetime Income v2.1 is the predetermined mathematical formula we employ that may periodically transfer your Unadjusted Account Value to and from the AST Investment Grade Bond Portfolio. See the section below entitled "How Highest Daily Lifetime Income v2.1 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio."

The income benefit under Highest Daily Lifetime Income v2.1 currently is based on a single "designated life" who is at least 50 years old on the benefit effective date. Highest Daily Lifetime Income v2.1 is not available if you elect any other optional living benefit. As long as your Highest Daily Lifetime Income v2.1 is in effect, you must allocate your Unadjusted Account Value in accordance with the Permitted Variable Options and other Investment Option(s) available with this benefit. **For a more detailed description of the permitted Investment Options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956)**.**

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Unadjusted Account Value falls to zero,** **if any particular withdrawal is a withdrawal of Excess Income (as described below) and brings your Unadjusted Account Value to zero, your** **Annual Income Amount also would fall to zero, and the benefit and the Annuity then would terminate. In that scenario, no further amount** **would be payable under Highest Daily Lifetime Income v2.1. As to the impact of such a scenario on any other optional benefit you may have,** **please see the following sections in this prospectus: "**[**<u>Spousal Highest Daily Lifetime Income v2.1 Benefit</u>**](#chapter_11-sect1_4_956)**", "**[**<u>Highest Daily Lifetime Income</u>** **<u>v2.1 with Highest Daily Death Benefit</u>**](#chapter_11-sect1_5_956)**" and "**[**<u>Spousal Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit</u>**](#chapter_11-sect1_6_956)**".**

You may also participate in the 6 or 12 Month DCA Program if you elect Highest Daily Lifetime Income v2.1, subject to the 6 or 12 Month DCA Program's rules. See the section of this prospectus entitled "[<u>Transfers and Rebalancing Programs - 6 or 12 Month Dollar Cost Averaging Program</u>](#chapter_9-sect1_3_956)" for details. No Long-Term Market Value Adjustment Option is permitted if you elect any optional benefit.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is only used to calculate the initial Annual Income Amount and the benefit fee. The Protected Withdrawal Value is separate from your Unadjusted Account Value and not available as cash or a lump sum withdrawal. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Unadjusted Account Value. On each Valuation Day thereafter, until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraphs.

The "Periodic Value" is initially equal to the Unadjusted Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. The Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal. (See below for examples of proportional reductions.)

The Periodic Value on or before the Roll-Up End Date

On any day we recalculate the Periodic Value (a "Current Valuation Day") that falls on or before the tenth (10<sup>th</sup>) anniversary of the benefit effective date (referred to as the "Roll-Up End Date"), the Periodic Value is equal to the greater of:

(1) the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 5% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment made on the Current Valuation Day; and

(2) the
 Unadjusted Account Value on the current Valuation Day.

The Periodic Value after the Roll-Up End Date

On any Current Valuation Day that falls after the Roll-Up End Date, the Periodic Value is equal to the greater of:

(1) the
 periodic Value for the Prior Valuation Day, plus the amount of any Purchase Payment made on the Current Valuation Day; and

(2) the
 Unadjusted Account Value on the current Valuation Day.

Because the 5% daily appreciation ends after the 10<sup>th</sup> anniversary of the benefit effective date, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit. If you begin taking Lifetime Withdrawals prior to your 10<sup>th</sup> benefit anniversary, the 5% daily appreciation will no longer increase your Protected Withdrawal Value.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Unadjusted Account Value upon any step-up, increased for subsequent Purchase Payments and reduced for subsequent Lifetime Withdrawals (see the examples that begin immediately prior to the sub-heading below entitled "Example of dollar-for-dollar reductions").

**Please note that if you elect Highest Daily Lifetime Income v2.1, your Account Value is not guaranteed, can fluctuate and may lose value.**

------

[Back to **Table of Contents**](#TOC_956)

**Key Feature – Annual Income Amount under Highest Daily Lifetime Income v2.1**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the Annuitant on the date of the first Lifetime Withdrawal. The percentages are: 3% for ages 50 to 54; 3.5% for ages 55 to less than 59½; 4% for ages 59½ to 64; 4.5% for ages 65 to 69; 5% for ages 70 to 84; and 6% for ages 85 or older. Under Highest Daily Lifetime Income v2.1, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year and also will reduce the Protected Withdrawal Value on a dollar-for-dollar basis. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Excess Income also will reduce the Protected Withdrawal Value by the same ratio.

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal is a withdrawal of Excess Income.

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of Excess Income, you cannot request
 an amount that would result in cumulative withdrawals in that Annuity Year exceeding your Annual Income Amount.

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of Excess Income, the amount you request plus the amount of any applicable CDSC and/or tax withholding cannot
 cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of Excess Income than if you request a gross withdrawal.

You may use the systematic withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit and must be taken as a gross withdrawal.

Any Purchase Payment that you make subsequent to the election of Highest Daily Lifetime Income v2.1 and subsequent to the first Lifetime Withdrawal will (i) immediately increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment based on the age of the Annuitant at the time of the first Lifetime Withdrawal (the percentages are: 3% for ages 50 to 54; 3.5% for ages 55 to less than 59½; 4% for ages 59½ to 64; 4.5% for ages 65 to 69; 5% for ages 70 to 84; and 6% for ages 85 or older) and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment.

While Highest Daily Lifetime Income v2.1 is in effect, we may limit, restrict, suspend or reject any additional Purchase Payment at any time, but would do so on a non-discriminatory basis. Circumstances where we may limit, restrict, suspend or reject additional Purchase Payments include, but are not limited to, the following:

• if
 we determine that, as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount
 is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed
 to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s);

• if
 we are not then offering this benefit for new issues; or

• if
 we are offering a modified version of this benefit for new issues.

If we exercise our right to restrict, suspend, reject and/or place limitations on the acceptance of additional Purchase Payments, you may no longer be able to fund your Highest Daily Lifetime Income v2.1 benefit. This means that you may no longer be able to increase the values associated with your Highest Daily Lifetime Income v2.1 benefit through additional Purchase Payments. When you elect this benefit and determine the amount of your Purchase Payment, you should consider the fact that we may suspend, reject or limit additional Purchase Payments at some point in the future.

We will exercise such reservation of right for all annuity purchasers in the same class of annuity in a non-discriminatory manner.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of Highest Daily Lifetime Income v2.1. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Auto Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Unadjusted Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the Annuitant on the Annuity Anniversary as of which the step-up would occur. The percentages are: 3% for ages 50 to 54; 3.5% for ages 55 to less than 59½; 4% for ages 59½ to 64; 4.5% for ages 65 to 69; 5% for ages 70 to 84; and 6% for ages 85 or order. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. We will not automatically increase your Annual Income Amount solely as a result of your attaining a new age that is associated with a new age-based percentage. The Unadjusted Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. All daily valuations and annual step-ups will only occur on

------

[Back to **Table of Contents**](#TOC_956)

a Valuation Day. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Unadjusted Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Unadjusted Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time of any increase to your Annual Income Amount, we will also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Highest Daily Lifetime Income v2.1 has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Highest Daily Lifetime Income v2.1 upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should consult with your financial professional and carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject. Any such increased charge will not be greater than the maximum charge set forth in the table entitled "[<u>Benefits Available Under the</u> <u>Contract</u>](#chapter_11-sect1_1_956)."

If you are enrolled in a systematic withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount. You must notify us in order to increase the withdrawal amount of any systematic withdrawal program.

Highest Daily Lifetime Income v2.1 does not affect your ability to take partial withdrawals under your Annuity, or limit your ability to take partial withdrawals that exceed the Annual Income Amount. Under Highest Daily Lifetime Income v2.1, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in any Annuity Year are less than the Annual Income Amount, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years. If your cumulative Lifetime Withdrawals in an Annuity Year exceed the Annual Income Amount, your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules).

Because both the Protected Withdrawal Value and Annual Income Amount are determined in a way that is not solely related to the Unadjusted Account Value, it is possible for the Unadjusted Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime Income v2.1 or any other fees and charges under the Annuity. As a result, these examples may not reflect the probable results of the benefit. Assume the following for all three examples:

• The
 Issue Date is November 1,

• Highest
 Daily Lifetime Income v2.1 is elected on August 1 of the following calendar year

• The
 Annuitant was 70 years old when he/she elected Highest Daily Lifetime Income v2.1

• The
 first withdrawal is a Lifetime Withdrawal

Unless otherwise indicated, all dates referenced hereafter in these examples occur in the same year the benefit is elected and it is assumed that they fall on consecutive business days.

**Example of Dollar-for-Dollar Reductions**

On October 28, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the designated life is between the ages of 70 and 84 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including October 31) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500).

**Example of Proportional Reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on October 29 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $1,500 reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the Excess Income to the Account Value immediately prior to the Excess Income. (Note that if there are other future withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

------

[Back to **Table of Contents**](#TOC_956)

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before Lifetime withdrawal | $118000.00 |
|  Amount of "non" Excess Income | $3500.00 |
|  Account Value immediately before Excess Income of $1,500 | $114500.00 |
|  Excess Income amount | $1500.00 |
|  Ratio ($1,500/$114,500 = 1.31%) | 1.31% |
|  Annual Income Amount | $6000.00 |
|  1.31% Reduction in Annual Income Amount | $78.60 |
|  Annual Income Amount for future Annuity Years | $5921.40 |

---

**Example** **of Highest Daily Auto Step-Up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Highest Daily Lifetime Income v2.1. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_8_956)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described earlier in this section will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with Highest Daily Lifetime Income v2.1. You must tell us at the time you take the withdrawal if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under Highest Daily Lifetime Income v2.1. If you do not designate the withdrawal as the Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime

------

[Back to **Table of Contents**](#TOC_956)

Withdrawal that establishes your Annual Income Amount, which is based on your Protected Withdrawal Value. Once you elect to take the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken. If you do not take a Non-Lifetime Withdrawal before beginning Lifetime Withdrawals, you lose the ability to take it.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value by the percentage the total withdrawal amount (including any applicable CDSC and Market Value Adjustment) represents of the then current Account Value immediately prior to the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a systematic withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first withdrawal under the program will be considered a Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit.

Assume the following:

• The
 Issue Date is December 3

• Highest
 Daily Lifetime Income v2.1 is elected on September 4 of the following calendar year

• The
 Unadjusted Account Value at benefit election was $105,000

• The
 Annuitant was 70 years old when he/she elected Highest Daily Lifetime Income v2.1

• No
 previous withdrawals have been taken under Highest Daily Lifetime Income v2.1

On October 3 of the year the benefit is elected, the Protected Withdrawal Value is $125,000 and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on that same October 3 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with Highest Daily Lifetime Income v2.1 will be reduced by the ratio of the total withdrawal amount to the Account Value just prior to the withdrawal being taken.

---

| | |
|:---|:---|
|  Withdrawal amount | $15000 |
|  Divided by Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375 |

---

**Required Minimum Distributions**

Required Minimum Distributions ("RMD") for this Annuity must be taken by April 1<sup>st</sup> in the year following the date you turn the applicable age and by December 31<sup>st</sup> for subsequent calendar years. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. See "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for more information about the applicable age and for further discussions of RMDs.

If the annual RMD amount is greater than the Annual Income Amount, a withdrawal of the RMD amount will not be treated as a withdrawal of Excess Income, as long as the RMD amount is calculated by us for this Annuity and administered under a program we support each calendar year. If you are not participating in an RMD withdrawal program each calendar year, you can alternatively satisfy the RMD amount without it being treated as a withdrawal of Excess Income as long as the below rules are applied.

A "Calendar Year" runs from January 1 to December 31 of that year.

Withdrawals made from the Annuity during an Annuity Year to meet the RMD provisions of the Code will not be treated as withdrawals of Excess Income if they are taken during one Calendar Year.

If Lifetime Withdrawals are taken over two Calendar Years, the amount that will not be treated as a withdrawal of Excess Income is:

• the
 remaining Annual Income Amount for that Annuity Year; plus

• the
 second Calendar Year's RMD amount minus the Annual Income Amount (the result of which cannot be less than zero).

------

[Back to **Table of Contents**](#TOC_956)

**Example**

The following example is purely hypothetical and intended to illustrate the scenario described above. Note that withdrawals must comply with all IRS guidelines in order to satisfy the RMD for the current calendar year.

---

| | | |
|:---|:---|:---|
|  **First Calendar Year** | **Annuity Year** | **Second Calendar Year** |
|  01/01/2021 to 12/31/2021 | 06/01/2021 to 05/31/2022 | 01/01/2022 to 12/31/2022 |

---

Assume the following:

• RMD
 Amount for Both Calendar Years = $6,000;

• Annual
 Income Amount = $5,000; and

• A
 withdrawal of $2,000 was taken on 07/01/2021 (during the First Calendar Year) resulting in a remaining Annual Income Amount for the Annuity
 Year of $3,000.

The amount that can be taken between 01/03/2022 and 05/31/2022 without creating a withdrawal of Excess Income is $4,000. Here is the calculation:

• The
 remaining Annual Income for that Annuity Year ($3,000); plus

• The
 Second Calendar Year's RMD Amount minus the Annual Income Amount ($6,000 - $5,000 = $1,000).

If the $4,000 is withdrawn during the Annuity Year, the remaining Annual Income Amount will be $0 and the remaining RMD amount for the Second Calendar Year ($2,000) may be taken in the next Annuity Year beginning on 06/01/2022.

Other Important Information

• If,
 in any Annuity Year, your RMD amount is less than your Annual Income Amount, any withdrawals in excess of the Annual Income Amount
 will be treated as Excess Income.

• If
 you do not comply with the rules described above, any withdrawal that exceeds the Annual Income Amount will be treated as a withdrawal
 of Excess Income, which will reduce your Annual Income Amount in future Annuity Years. This may include a situation where you
 comply with the rules described above and then decide to take additional withdrawals after satisfying your RMD from the Annuity.

• If
 you take a partial withdrawal to satisfy RMD and designate that withdrawal as a Non-Lifetime Withdrawal, please note that all Non-Lifetime
 Withdrawal provisions will apply.

**Benefits Under Highest Daily Lifetime Income v2.1**

• To
 the extent that your Unadjusted Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that
 are less than or equal to the Annual Income Amount, and amounts are still payable under Highest Daily Lifetime Income v2.1, we will make
 an additional payment, if any, for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year. Thus, in that scenario,
 the remaining Annual Income Amount would be payable even though your Unadjusted Account Value was reduced to zero. In subsequent
 Annuity Years we make payments that equal the Annual Income Amount as described in this section. We will make payments until
 the death of the single designated life. After the Unadjusted Account Value is reduced to zero, you will not be permitted to make additional
 Purchase Payments to your Annuity. **To the extent that cumulative partial withdrawals in an Annuity Year exceed the** **Annual Income Amount ("Excess Income") and reduce your Unadjusted Account Value to zero, Highest Daily Lifetime Income** **v2.1 terminates, we will make no further payments of the Annual Income Amount and no additional Purchase Payments will be** **permitted. However, if a partial withdrawal in the latter scenario was taken to satisfy a Required Minimum Distribution (as** **described above) under the Annuity, then the benefit will not terminate, and we will continue to pay the Annual Income Amount** **in subsequent Annuity Years until the death of the designated life.** 

• Please
 note that if your Unadjusted Account Value is reduced to zero, all payments in each Annuity Year subsequent to the Annuity Year your
 Account Value is reduced to zero will be treated as annuity payments. Also, any Death Benefit will terminate if withdrawals reduce your
 Unadjusted Account Value to zero. This means that any Death Benefit is terminated and no Death Benefit is payable if your Unadjusted
 Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal
 to, your Annual Income Amount.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual <br> Income
 Amount due in subsequent Annuity Years, you can elect one of the following two options:

(1) apply
 your Unadjusted Account Value, less any applicable tax charges, to any annuity option available; or

(2) request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 If this option is elected, the Annual Income Amount will not increase after annuity payments have begun. We will make payments
 until the death of the single designated life. We must receive your request in a form acceptable to us at our Service Center.
 If applying your Unadjusted Account Value, less any applicable tax charges, to the life-only annuity payment rates results in a
 higher annual payment, we will give you the higher annual payment.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• In
 the absence of an election when mandatory annuity payments are to begin we currently make annual annuity payments in the form of a single
 life fixed annuity with eight payments certain, by applying the greater of the annuity rates then currently available or the annuity rates
 guaranteed in your Annuity. We reserve the right at any time to increase or decrease the period certain in order to comply with the Code
 (e.g., to shorten the period certain to match life expectancy under applicable IRS tables). The amount that will be applied to provide such annuity payments
 will be the greater of:

(1) the
 present value of the future Annual Income Amount payments (if no Lifetime Withdrawal was ever taken, we will calculate the Annual
 Income Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin). Such present value
 will be calculated using the greater of the single life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed
 in your Annuity; and

(2) the
 Unadjusted Account Value.

**Other Important Considerations**

• Withdrawals
 under Highest Daily Lifetime Income v2.1 are subject to all of the terms and conditions of the Annuity, including any applicable
 CDSC for the Non-Lifetime Withdrawal as well as partial withdrawals that exceed the Annual Income Amount. If you have an active
 systematic withdrawal program at the time you elect this benefit, the first systematic withdrawal that processes will be deemed a Lifetime
 Withdrawal. Withdrawals made while Highest Daily Lifetime Income v2.1 is in effect will be treated, for tax purposes, in the same way
 as any other withdrawals under the Annuity. Any withdrawals made under the benefit will be taken on a proportional basis from the Variable
 Options (including the AST Investment Grade Bond Portfolio) and the DCA Market Value Adjustment Options. If you have an active
 systematic withdrawal program and you elect this benefit, the program must withdraw funds on a proportional basis.

• Any
 Lifetime Withdrawal that does not cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount is not subject
 to a CDSC, even if the total amount of such withdrawals in any Annuity Year exceeds the maximum Free Withdrawal amount. For example,
 if your Free Withdrawal amount is $10,000 and your Annual Income Amount is $11,000, withdrawals of your entire Annual Income
 Amount in any Annuity Year would not trigger a CDSC. If you withdrew $12,000, however, $1,000 would be subject to a CDSC.

• You
 should carefully consider when to begin taking Lifetime Withdrawals. If you begin taking withdrawals early, you may maximize the time
 during which you may take Lifetime Withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals
 reduce your Unadjusted Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss
 with your financial professional when it may be appropriate for you to begin taking Lifetime Withdrawals.

• You
 cannot allocate Purchase Payments or transfer Unadjusted Account Value to or from the AST Investment Grade Bond Portfolio. **A** **summary description of the AST Investment Grade Bond Portfolio appears** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) . You
 can find a copy of the AST Investment Grade
 Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>.

• Transfers
 to and from the Permitted Variable Options, the DCA Market Value Adjustment Options, and the AST Investment Grade Bond Portfolio
 triggered by the predetermined mathematical formula will not count toward the maximum number of free transfers allowable under
 an Annuity.

• Upon
 election of the benefit, 100% of your Unadjusted Account Value must be allocated to the Permitted Variable Options. We may amend the
 Permitted Variable Options from time to time. Changes to the Permitted Variable Options, or to the requirements as to how you may allocate
 your Account Value with this benefit, will apply to new elections of the benefit and may apply to current participants in the benefit. To the extent that
 changes apply to current participants in the benefit, they will only apply upon re-allocation of Account Value, or to any additional
 Purchase Payments that are made after the changes have gone into effect. That is, we will not require such current participants to
 re-allocate Account Value to comply with any new requirements.

• If
 you elected this benefit, you may be required to reallocate to different Variable Options if you are currently invested in non-permitted Variable Options.
 On the Valuation Day we receive your request in Good Order, we will (i) sell Units of the non-permitted Variable Options and
 (ii) invest the proceeds of those sales in the Variable Options that you have designated. During this reallocation process, your Unadjusted
 Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected
 benefit will commence at the close of business on the following Valuation Day. Thus, the protection afforded by the newly-elected
 benefit will not begin until the close of business on the following Valuation Day.

• Any
 Death Benefit will terminate if withdrawals taken under Highest Daily Lifetime Income v2.1 reduce your Unadjusted Account Value to zero.
 This means that any Death Benefit is terminated and no Death Benefit is payable if your Unadjusted Account Value is reduced to zero
 as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal to, your Annual Income Amount. (See
 " [<u>Triggers for Payment of the Death Benefit</u>](#chapter_11-sect1_9_956) "
 for more information.)

**Charge for Highest Daily Lifetime Income v2.1**

The maximum charge for Highest Daily Lifetime Income v2.1 is 2.00% annually of the greater of the Unadjusted Account Value and Protected Withdrawal Value. As discussed in "Highest Daily Auto Step-Up" above, we may increase the fee upon a step-up under this benefit. We deduct this charge on quarterly anniversaries of the benefit effective date, based on the values on the last Valuation Day prior to the quarterly anniversary. Thus, we deduct, on a quarterly basis, 0.50% of the greater of the prior Valuation Day's Unadjusted Account Value and the prior Valuation Day's Protected Withdrawal Value.

------

[Back to **Table of Contents**](#TOC_956)

We deduct the fee on a proportional basis from each of your Variable Options, including the AST Investment Grade Bond Portfolio. You will begin paying this charge as of the effective date of the benefit even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments.

If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for Highest Daily Lifetime Income v2.1 would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, partial withdrawals may reduce the Unadjusted Account Value to zero. If the Unadjusted Account Value is reduced to zero as a result of a partial withdrawal that is not a withdrawal of Excess Income and the Annual Income Amount is greater than zero, we will make payments under the benefit.

**Election of and Designations under the Benefit**

For Highest Daily Lifetime Income v2.1, there must be either a single Owner who is the same as the Annuitant, or if the Annuity is entity owned, there must be a single natural person Annuitant. In either case, the Annuitant must be at least 50 years old. Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime Income v2.1. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime Income v2.1, except if (a) the new Owner has the same taxpayer identification number as the previous Owner, (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

Highest Daily Lifetime Income v2.1 can be elected at the time that you purchase your Annuity or after the Issue Date, subject to its availability. Effective December 31, 2020 we no longer allow elections of this benefit. If you elect Highest Daily Lifetime Income v2.1 and terminate it, you cannot re-elect it. See "[<u>Termination of Existing Benefits and Election of New Benefits</u>](#achapter_11-sect1_2_956)" for information pertaining to elections, termination and re-election of benefits. **Please** **note that if you terminate a living benefit and elect Highest Daily Lifetime Income v2.1, you lose the guarantees that you had accumulated** **under your existing benefit and your guarantees under Highest Daily Lifetime Income v2.1 will be based on your Unadjusted Account Value on** **the effective date of Highest Daily Lifetime Income v2.1.** You and your financial professional should carefully consider whether terminating your existing benefit is appropriate for you. There is no guarantee that any benefit will be available for election at a later date.

If you wish to elect this benefit and you are currently participating in a systematic withdrawal program, amounts withdrawn under the program must be taken on a proportional basis from your Annuity's Variable Options (i.e., in direct proportion to the proportion that each such Variable Option bears to your total Account Value) in order for you to be eligible for the benefit. Thus, you may not elect Highest Daily Lifetime Income v2.1 so long as you participate in a systematic withdrawal program in which withdrawals are not taken on a proportional basis.

**Termination of the Benefit**

You may terminate Highest Daily Lifetime Income v2.1 at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and you cannot re-elect the benefit.

**The benefit automatically terminates upon the first to occur of the following:**

**(A)** **your termination of the benefit;** 

**(B)** **your surrender of the Annuity;** 

**(C)** **the Latest Annuity Date or your election to begin receiving annuity payments (although if you have elected to receive the** **Annual Income Amount in the form of annuity payments, we will continue to pay the Annual Income Amount);** 

**(D)** **our receipt of Due Proof of Death of the Owner or Annuitant (for entity-owned annuities);** 

**(E)** **both the Unadjusted Account Value and Annual Income Amount equal zero due to a withdrawal of Excess Income;** 

**(F)** **you allocate or transfer any portion of your Account Value to any Variable Option(s) to which you are not permitted to** **electively allocate or transfer Account Value (subject to state law – please see** [**<u>Appendix B</u>**](#chapter_19-sect1_1_956) **for Special Contract Provisions** **for Annuities Issued in Certain States);** **\*** **or** 

**(G)** **you cease to meet our requirements as described in "Election of and Designations under the Benefit" above or if we** **process a requested change that is not consistent with our allowed Owner, Annuitant or Beneficiary designations.\*** 

\* Prior to terminating a benefit, we will send you written notice and provide you with an opportunity to reallocate amounts to the Permitted Variable Options or change your designations, as applicable.

"Due Proof of Death" is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claim forms from at least one Beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary.

------

[Back to **Table of Contents**](#TOC_956)

Upon termination of Highest Daily Lifetime Income v2.1, other than upon the death of the Annuitant or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. However, if the amount in the Variable Options is not enough to pay the charge, we will reduce the fee to no more than the amount in the Variable Options. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options, and (ii) unless you are participating in an asset allocation program, transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If, prior to the transfer from the AST Investment Grade Bond Portfolio, the Unadjusted Account Value in the Variable Options is zero, we will transfer such amounts to the AST Government Money Market Variable Option.

If a surviving spouse elects to continue the Annuity, Highest Daily Lifetime Income v2.1 terminates upon Due Proof of Death. The spouse may newly elect the benefit subject to the restrictions discussed in "Election of and Designations under the Benefit" and "Termination of Your Highest Daily Lifetime Income v2.1" earlier in this benefit description.

**How Highest Daily Lifetime Income v2.1 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST** **Investment Grade Bond Portfolio**

**Overview of the Predetermined Mathematical Formula**

Our goal is to seek a careful balance between providing value-added products, such as the Highest Daily Lifetime Income v2.1 suite of benefits, while managing the risk to Pruco Life associated with offering these products. One of the key features that helps us accomplish that balance and an integral part of the Highest Daily Lifetime Income v2.1 suite is the predetermined mathematical formula used to transfer Unadjusted Account Value between the Permitted Variable Options and the AST Investment Grade Bond Portfolio, referred to in this section as the "Bond Portfolio". The formula is designed primarily to mitigate some of the financial risks that we incur in providing the guarantee under the Highest Daily Lifetime Income v2.1 suite of benefits. The formula is not investment advice.

**The formula is set forth in** [**<u>Appendix I</u>**](#chapter_26-sect1_1_956) **(and is described below).**

The predetermined mathematical formula ("formula") monitors each individual contract each Valuation Day that the benefit is in effect on your Annuity, in order to help us manage guarantees through all market cycles. It helps manage the risk to us associated with these benefits, which is generally represented by the gap between your Unadjusted Account Value and the Protected Withdrawal Value. As the gap between these two values increases, the formula will determine if and how much money should be transferred into the Bond Portfolio. This movement is intended to reduce the equity risk we will bear in funding our obligation associated with these benefits. As the gap decreases (due to favorable performance of the Unadjusted Account Value), the formula then determines if and how much money should transfer back into the Permitted Variable Options. The use of the formula, combined with restrictions on the Variable Options you are allowed to invest in, lessens the risk that your Unadjusted Account Value will be reduced to zero while you are still alive, thus reducing the likelihood that we will make any lifetime income payments under this benefit. The formula may also limit the potential for your Account Value to grow.

The formula is not forward looking and contains no predictive or projective component with respect to the markets, the Unadjusted Account Value or the Protected Withdrawal Value. We are not providing you with investment advice through the use of the formula. The formula does not constitute an investment strategy that we are recommending to you. The formula may limit the potential for your Account Value to grow.

**Transfer Activity Under the Formula**

Prior to the first Lifetime Withdrawal, the primary driver of transfers to the Bond Portfolio is the difference between your Unadjusted Account Value and your Protected Withdrawal Value. If none of your Unadjusted Account Value is allocated to the Bond Portfolio, then over time the formula permits an increasing difference between the Unadjusted Account Value and the Protected Withdrawal Value before a transfer to the Bond Portfolio occurs. Therefore, over time, assuming none of the Unadjusted Account Value is allocated to the Bond Portfolio, the formula will allow for a greater decrease in the Unadjusted Account Value before a transfer to the Bond Portfolio is made.

It is important to understand that transfers within your Annuity are specific to the performance of your chosen Investment Options, the performance of the Bond Portfolio while Account Value is allocated to it, as well as how long the benefit has been owned. For example, two contracts purchased on the same day, but invested differently, will likely have different results, as would two contracts purchased on different days with the same Investment Options.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Unadjusted Account Value, will differ from market cycle to market cycle, therefore producing different transfer activity under the formula. The amount and timing of transfers to and from the Bond Portfolio depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Unadjusted Account Value and your Protected Withdrawal Value;

• The
 amount of time the benefit has been in effect on your Annuity;

• The
 amount allocated to and the performance of the Permitted Variable Options and the Bond Portfolio;

• Any
 additional Purchase Payments you made to your Annuity (while the benefit is in effect); and

• Any
 withdrawals you take from your Annuity (while the benefit is in effect).

------

[Back to **Table of Contents**](#TOC_956)

Under the formula, investment performance of your Unadjusted Account Value that is negative, flat, or even moderately positive may result in a transfer of a portion of your Unadjusted Account Value in the Permitted Variable Options to the Bond Portfolio.

At any given time, some, most or none of your Unadjusted Account Value will be allocated to the Bond Portfolio, as dictated by the formula.

The amount allocated to the Bond Portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula. Therefore, the investment performance of each affects whether a transfer occurs for your Annuity. As the amounts allocated to either the Bond Portfolio or the Permitted Variable Options increase, the performance of those Variable Options will have a greater impact on your Unadjusted Account Value and hence a greater impact on if (and how much of) your Unadjusted Account Value is transferred to or from the Bond Portfolio. It is possible that if a significant portion of your Unadjusted Account Value is allocated to the Bond Portfolio and that Variable Option has positive performance, the formula might transfer a portion of your Unadjusted Account Value to the Permitted Variable Options, even if the performance of your Permitted Variable Options is negative. Conversely, if a significant portion of your Unadjusted Account Value is allocated to the Bond Portfolio and that Variable Option has negative performance, the formula may transfer additional amounts from your Permitted Variable Options to the Bond Portfolio even if the performance of your Permitted Variable Options is positive.

**How the Formula Operates**

Generally, the formula, which is applied each Valuation Day, takes four steps in determining any applicable transfers within your Annuity.

(1) First,
 the formula starts by identifying the value of future income payments we expect to pay. We refer to that value as the "Target Value" or "L".

(2) Second,
 we subtract any amounts invested in the Bond Portfolio ("B") from the Target Value and divide that number by the amount invested
 in the Permitted Variable Options ("V <sub>V</sub> + V <sub>F</sub> "),
 where "V <sub>V</sub> "
 is the current Account Value of the elected Variable Options of the Annuity,
 and "V <sub>F</sub> "
 is the current Account Value of the elected Fixed Rate Options of the Annuity. We refer to this resulting value as the "Target
 Ratio" or "R".

(3) Third,
 we compare the Target Ratio to designated thresholds and other rules described in greater detail below to determine if a transfer needs <br> to
 occur.

(4) If
 a transfer needs to occur, we use another calculation to determine the amount of the transfer.

The Formula is:

R = (L – B)/(V<sub>V</sub> + V<sub>F</sub>)

More specifically, the formula operates as follows:

**(1)** **We calculate the Target Value (L) by multiplying the Income Basis (as defined in** [**<u>Appendix I</u>**](#chapter_26-sect1_1_956) **) for that day by 5% and by the** **applicable Annuity Factor found in** [**<u>Appendix I</u>**](#chapter_26-sect1_1_956) **.** If you have already made a Lifetime Withdrawal, your Target Value would take into account
 any automatic step-up, any subsequent Purchase Payments and any withdrawals of Excess Income.

Example (assume the Income Basis is $200,000, and the contract is 11½ months old, resulting in an annuity factor of 14.95)

Target Value (L) = $200,000 × 5% × 14.95 = $149,500

(2) Next,
 to calculate the Target Ratio (R), the Target Value is reduced by any amount held within the Bond Portfolio (B) on that day. The remaining
 amount is divided by the amount held within the Permitted Variable Options (V <sub>V</sub> + V <sub>F</sub>).

Example (assume the amount in the Bond Portfolio is zero, and the amount held within the Permitted Variable Options is $179,500)

Target Ratio (R) = ($149,500 – 0)/$179,500 = 83.3%

(3) If,
 on each of three consecutive Valuation Days, the Target Ratio is greater than 83% but less than or equal to 84.5%, the formula will, on the third Valuation
 Day, make a transfer from your Permitted Variable Options to the Bond Portfolio (subject to the 90% cap discussed below).
 If, however, on any Valuation Day, the Target Ratio is above 84.5%, the formula will make a transfer from the Permitted Variable Options
 to the Bond Portfolio (subject to the 90% cap). Once a transfer is made, the Target Ratio must again be greater than 83% but less than
 or equal to 84.5% for three consecutive Valuation Days before a subsequent transfer to the Bond Portfolio will occur. If the Target Ratio
 falls below 78% on any Valuation Day, then a transfer from the Bond Portfolio to the Permitted Variable Options (excluding the DCA Market
 Value Adjustment Options) will occur.

Example: Assuming the Target Ratio is above 83% for a 3<sup>rd</sup> consecutive Valuation Day, but less than or equal to 84.5% for three consecutive Valuation Days, a transfer into the Bond Portfolio occurred.

(4) In
 deciding how much to transfer, we perform a calculation that essentially seeks to reallocate amounts held in the Permitted Variable Options and the Bond Portfolio
 so that the Target Ratio meets a target, which currently is equal to 80% (subject to the 90% Cap discussion below). The further
 the Target Ratio is from 80% when a transfer is occurring under the formula, the greater the transfer amount
 will be.

------

[Back to **Table of Contents**](#TOC_956)

**The 90% Cap Rule**

The formula will not execute a transfer to the Bond Portfolio that results in more than 90% of your Unadjusted Account Value being allocated to the Bond Portfolio ("90% cap") on that Valuation Day. Thus, on any Valuation Day, if the formula would require a transfer to the Bond Portfolio that would result in more than 90% of the Unadjusted Account Value being allocated to the Bond Portfolio, only the amount that results in exactly 90% of the Unadjusted Account Value being allocated to the Bond Portfolio will be transferred. Additionally, future transfers into the Bond Portfolio will not be made (regardless of the performance of the Bond Portfolio and the Permitted Variable Options) at least until there is first a transfer out of the Bond Portfolio. Once this transfer occurs out of the Bond Portfolio, future amounts may be transferred to or from the Bond Portfolio (subject to the 90% cap).

Under the operation of the formula, the 90% cap may come into and out of effect multiple times while you participate in the benefit. At no time will the formula make a transfer to the Bond Portfolio that results in greater than 90% of your Unadjusted Account Value being allocated to the Bond Portfolio. However, it is possible that, due to the investment performance of your allocations in the Bond Portfolio and your allocations in the Permitted Variable Options you have selected, your Unadjusted Account Value could be more than 90% invested in the Bond Portfolio.

**<u>Monthly Transfers</u>**

Additionally, on each monthly Annuity Anniversary (if the monthly Annuity Anniversary does not fall on a Valuation Day, the next Valuation Day will be used), following all of the above described daily calculations, if there is money allocated to the Bond Portfolio, the formula will perform an additional calculation to determine whether or not a transfer will be made from the Bond Portfolio to the Permitted Variable Options. This transfer will automatically occur provided that the Target Ratio, as described above, would be less than 83% after this transfer. The formula will not execute a transfer if the Target Ratio after this transfer would occur would be greater than or equal to 83%.

The amount of the transfer will be equal to the lesser of:

(a) The
 total value of all your Unadjusted Account Value in the Bond Portfolio, or

(b) An
 amount equal to 5% of your total Unadjusted Account Value.

**<u>Other Important Information</u>**

• The
 Bond Portfolio is not a Permitted Variable Option. As such, only the formula can transfer Unadjusted Account Value to or from the Bond
 Portfolio. You may not allocate Purchase Payments or transfer any of your Unadjusted Account Value to or from the Bond Portfolio.

• While
 you are not notified before a transfer occurs to or from the Bond Portfolio, you will receive a confirmation statement indicating the transfer of a portion
 of your Unadjusted Account Value either to or from the Bond Portfolio. Your confirmation statements will be detailed to include
 the effective date of the transfer, the dollar amount of the transfer and the Permitted Variable Options the funds are being transferred
 to/from. Depending on the results of the calculations of the formula, we may, on any Valuation Day:

○ Not
 make any transfer between the Permitted Variable Options and the Bond Portfolio; or

○ If
 a portion of your Unadjusted Account Value was previously allocated to the Bond Portfolio, transfer all or a portion of those amounts
 to the Permitted Variable Options (as described above); or

○ Transfer
 a portion of your Unadjusted Account Value in the Permitted Variable Options and the DCA Market Value Adjustment Options
 to the Bond Portfolio.

• If
 you made additional Purchase Payments to your Annuity, they will be allocated to the Permitted Variable Options and will be subject to the formula.

• Additional
 Purchase Payments to your Annuity do not increase "B" within the formula, and may result in an additional Account Value being transferred to the
 Permitted Variable Options, or a transfer to the Bond Portfolio due to the change in the ratio.

• If
 you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional
 Purchase Payments to the Bond Portfolio at least until there is first a transfer out of the Bond Portfolio, regardless of how much of
 your Unadjusted Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the
 additional Purchase Payments you make, less than 90% of your entire Unadjusted Account Value is allocated to the Bond Portfolio, and
 the formula will still not transfer any of your Unadjusted Account Value to the Bond Portfolio (at least until there is first a transfer
 out of the Bond Portfolio).

• If
 you are participating in a Highest Daily Lifetime Income v2.1 benefit and you are also participating in the 6 or 12 Month DCA Program, the following rules
 apply:

○ DCA
 Market Value Adjustment Options are considered "Permitted Variable Options" for purpose of the Target Ratio calculation ("L") described above.

○ The
 formula may transfer amounts out of the DCA Market Value Adjustment Options to the Bond Portfolio if the amount allocated to the
 other Permitted Variable Options is insufficient to cover the amount of the transfer.

○ The
 transfer formula will not allocate amounts to the DCA Market Value Adjustment Options when there is a transfer out of the Bond Portfolio.
 Such transfers will be allocated on a proportional basis to the Variable Options, excluding the Bond Portfolio.

○ A
 Market Value Adjustment is not assessed when amounts are transferred out of the DCA Market Value Adjustment Options under the
 transfer formula.

------

[Back to **Table of Contents**](#TOC_956)

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts beginning after the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. See "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for more information about the applicable age and further discussions of RMDs.

As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. Please see "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for a detailed discussion of the tax treatment of withdrawals. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in Highest Daily Lifetime Income v2.1 or Spousal Highest Daily Lifetime Income v2.1 through a Non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

**SPOUSAL HIGHEST DAILY LIFETIME INCOME v2.1 BENEFIT**

**The Spousal Highest Daily Lifetime Income v2.1 Benefit is no longer available for new business or post-issue election.**

Spousal Highest Daily Lifetime Income v2.1 is a lifetime guaranteed minimum withdrawal benefit, under which, subject to the terms of the benefit, we guarantee your ability to take a certain annual withdrawal amount for the lives of two individuals who are spouses. We reserve the right, in our sole discretion, to cease offering this benefit for new elections at any time.

We offer a benefit that guarantees, until the later death of two natural persons who are each other's spouses at the time of election of the benefit (the "designated lives", and each, a "designated life"), the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Unadjusted Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the lives of the designated lives, provided you have not made withdrawals of Excess Income that result in your Unadjusted Account Value being reduced to zero. We also permit you to designate the first withdrawal from your Annuity as a one-time "Non-Lifetime Withdrawal." You may wish to take a Non-Lifetime Withdrawal if you have an immediate need for access to your Account Value but do not wish to begin lifetime payments under the optional living benefit. All other withdrawals from your Annuity are considered a "Lifetime Withdrawal" under the benefit. Withdrawals are taken first from your own Unadjusted Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Unadjusted Account Value is reduced to zero (for any reason other than due to partial withdrawals of Excess Income). The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue Spousal Highest Daily Lifetime Income v2.1 after the death of the first spouse. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. An integral component of Spousal Highest Daily Lifetime Income v2.1 is the predetermined mathematical formula we employ that may periodically transfer your Unadjusted Account Value to and from the AST Investment Grade Bond Portfolio. See the section above entitled "[<u>How Highest Daily Lifetime</u> <u>Income v2.1 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio</u>](#achapter_11-sect1_3_956)."

Spousal Highest Daily Lifetime Income v2.1 is the spousal version of Highest Daily Lifetime Income v2.1. If you elected Spousal Highest Daily Lifetime Income v2.1 and subsequently terminate the benefit, you will not be able to re-elect it. Please note that if you terminate Spousal Highest Daily Lifetime Income v2.1, you lose the guarantees that you had accumulated under your existing benefit. See "[<u>Termination of Existing Benefits and Election of New</u> <u>Benefits</u>](#achapter_11-sect1_2_956)" for details.

Spousal Highest Daily Lifetime Income v2.1 must be elected based on two designated lives, as described below. Each designated life must be at least 50 years old on the benefit effective date. We will not divide an Annuity or the Spousal Highest Daily Lifetime Income v2.1 benefit due to a divorce. See "Election of and Designations under the Benefit" below for details. Spousal Highest Daily Lifetime Income v2.1 is not available if you elect any other optional living benefit. As long as your Spousal Highest Daily Lifetime Income v2.1 is in effect, you must allocate your Unadjusted Account Value in accordance with the Permitted Variable Options and other Investment Option(s) available with this benefit. **For a more detailed description of the** **permitted Investment Options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956)**.**

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Unadjusted Account Value falls to zero,** **if any particular withdrawal is a withdrawal of Excess Income (as described below) and brings your Unadjusted Account Value to zero, your** **Annual Income Amount also would fall to zero, and the benefit and the Annuity then would terminate. In that scenario, no further amount** **would be payable under Spousal Highest Daily Lifetime Income v2.1. As to the impact of such a scenario on any other optional benefit you** **may have, please see the following sections in this prospectus: "**[**<u>Highest Daily Lifetime Income v2.1 Benefit</u>**](#chapter_11-sect1_3_956)**", "**[**<u>Highest Daily Lifetime Income</u>** **<u>v2.1 with Highest Daily Death Benefit</u>**](#chapter_11-sect1_5_956)**" and "**[**<u>Spousal Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit</u>**](#chapter_11-sect1_6_956)**".**

You may also participate in the 6 or 12 Month Dollar Cost Averaging Program if you elect Spousal Highest Daily Lifetime Income, subject to the 6 or 12 Month DCA Program's rules. See the section of this prospectus entitled "[<u>Transfer and Rebalancing Programs - 6 or 12 Month Dollar Cost Averaging</u> <u>Program</u>](#chapter_9-sect1_3_956)" for details. No Long-Term Market Value Adjustment Option is permitted if you elect any optional benefit.

------

[Back to **Table of Contents**](#TOC_956)

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is only used to calculate the initial Annual Income Amount and the benefit fee. The Protected Withdrawal Value is separate from your Unadjusted Account Value and not available as cash or a lump sum withdrawal. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Unadjusted Account Value. On each Valuation Day thereafter until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraph.

The "Periodic Value" is initially equal to the Unadjusted Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. The Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal. (See below for examples of proportional reductions.)

The Periodic Value on or before the Roll-Up End Date

On any day we recalculate the Periodic Value (a "Current Valuation Day") that falls on or before the tenth (10<sup>th</sup>) anniversary of the benefit effective date (referred to as the "Roll-Up End Date"), the Periodic Value is equal to the greater of:

(1) the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 5% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment made on the Current Valuation Day; and

(2) the
 Unadjusted Account Value on the current Valuation Day.

The Periodic Value after the Roll-Up End Date

On any Current Valuation Day that falls after the Roll-Up End Date, the Periodic Value is equal to the greater of:

(1) the
 Periodic Value for the Prior Valuation Day, plus the amount of any Purchase Payment made on the Current Valuation Day; and

(2) the
 Unadjusted Account Value on the current Valuation Day.

Because the 5% daily appreciation ends after the 10<sup>th</sup> anniversary of the benefit effective date, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit. If you begin taking Lifetime Withdrawals prior to your 10<sup>th</sup> benefit anniversary, the 5% daily appreciation will no longer increase your Protected Withdrawal Amount.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Unadjusted Account Value upon any step-up, increased for subsequent Purchase Payments and reduced for subsequent Lifetime Withdrawals (see the examples that begin immediately prior to the sub-heading below entitled "Example of dollar-for-dollar reductions").

**Please note that if you elect Spousal Highest Daily Lifetime Income v2.1, your Account Value is not guaranteed, can fluctuate and may lose** **value.** 

**Key Feature – Annual Income Amount under Spousal Highest Daily Lifetime Income v2.1** 

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the younger designated life on the date of the first Lifetime Withdrawal after election of the benefit. The percentages are: 2.5% for ages 50 to 54; 3% for ages 55 to less than 59½; 3.5% for ages 59½ to 64; 4% for ages 65 to 69; 4.5% for ages 70 to 84; and 5.5% for ages 85 or older. We use the age of the younger designated life even if that designated life is no longer a participant under the Annuity due to death or divorce. Under Spousal Highest Daily Lifetime Income v2.1, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year and also will reduce the Protected Withdrawal Value on a dollar-for-dollar basis. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount for any Annuity Year ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Unadjusted Account Value immediately prior to such withdrawal (see examples of this calculation below). Excess Income also will reduce the Protected Withdrawal Value by the same ratio.

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal is a withdrawal of Excess Income.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of Excess Income, you cannot request
 an amount that would result in cumulative withdrawals in that Annuity Year exceeding your Annual Income Amount.

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of Excess Income, the amount you request plus the amount of any applicable CDSC and/or tax withholding cannot
 cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of Excess Income than if you request a gross withdrawal.

You may use the systematic withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit and must be taken as a gross withdrawal.

Any Purchase Payment that you make subsequent to the election of Spousal Highest Daily Lifetime Income v2.1 and subsequent to the first Lifetime Withdrawal will (i) immediately increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment based on the age of the younger designated life at the time of the first Lifetime Withdrawal (the percentages are: 2.5% for ages 50 to 54; 3% for ages 55 to less than 59½; 3.5% for ages 59½ to 64; 4% for ages 65 to 69; 4.5% for ages 70 to 84; and 5.5% for ages 85 or older), and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment.

While Spousal Highest Daily Lifetime Income v2.1 is in effect, we may limit, restrict, suspend or reject any additional Purchase Payment at any time, but would do so on a non-discriminatory basis. Circumstances where we may limit, restrict, suspend or reject additional Purchase Payments include, but are not limited to, the following:

• if
 we determine that, as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount
 is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed
 to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s);

• if
 we are not then offering this benefit for new issues; or

• if
 we are offering a modified version of this benefit for new issues.

If we exercise our right to restrict, suspend, reject and/or place limitations on the acceptance of additional Purchase Payments, you may no longer be able to fund your Spousal Highest Daily Lifetime Income v2.1 benefit. This means that you may no longer be able to increase the values associated with your Spousal Highest Daily Lifetime Income v2.1 benefit through additional Purchase Payments. When you elect this benefit and determine the amount of your Purchase Payment, you should consider the fact that we may suspend, reject or limit additional Purchase Payments at some point in the future.

We will exercise such reservation of right for all annuity purchasers in the same class of annuity in a non-discriminatory manner.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of this benefit. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Unadjusted Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the younger designated life on the Annuity Anniversary as of which the step-up would occur. The percentages are 2.5% for ages 50 to 54; 3% for ages 55 to less than 59½; 3.5% for ages 59½ to 64; 4% for ages 65 to 69; 4.5% for ages 70 to 84; and 5.5% for ages 85 or older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. We will not automatically increase your Annual Income Amount solely as a result of your attaining a new age that is associated with a new age-based percentage. The Unadjusted Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary by performing a similar examination of the Unadjusted Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Unadjusted Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time of any increase to your Annual Income Amount, we will also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Spousal Highest Daily Lifetime Income v2.1 has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Spousal Highest Daily Lifetime Income v2.1 upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject. Any such increased charge will not be greater than the maximum charge set forth in the table entitled "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)".

If you are enrolled in a systematic withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount. You must notify us in order to increase the withdrawal amount of any systematic withdrawal program.

------

[Back to **Table of Contents**](#TOC_956)

Spousal Highest Daily Lifetime Income v2.1 does not affect your ability to take withdrawals under your Annuity, or limit your ability to take partial withdrawals that exceed the Annual Income Amount. Under Spousal Highest Daily Lifetime Income v2.1, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years. If your cumulative Lifetime Withdrawals in an Annuity Year exceed the Annual Income Amount, your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules).

Because both the Protected Withdrawal Value and Annual Income Amount are determined in a way that is not solely related to the Unadjusted Account Value, it is possible for the Unadjusted Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Spousal Highest Daily Lifetime Income v2.1 or any other fees and charges under the Annuity. Assume the following for all three examples:

• The Issue Date is November 1

• Spousal Highest Daily Lifetime Income v2.1 is elected on August 1 of the following calendar year

• Both designated lives were 70 years old when they elected Spousal Highest Daily Lifetime Income v2.1

• The first withdrawal is a Lifetime Withdrawal

Unless otherwise indicated, all dates referenced hereafter in these examples occur in the same year the benefit is elected and it is assumed that they fall on consecutive business days.

**Example of Dollar-for-Dollar Reductions**

On October 28, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $5,400 (since the younger designated life is between the ages of 70 and 84 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 4.5% of the Protected Withdrawal Value, in this case 4.5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including October 31) is $2,900. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($5,400 less $2,500 = $2,900).

**Example of Proportional Reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on October 29<sup>th</sup> and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $2,900 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $2,100 reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the Excess Income to the Account Value immediately prior to the Excess Income. (Note that if there were other withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount.)

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before Lifetime Withdrawal | $118000.00 |
|  Amount of "non" Excess Income | $2900.00 |
|  Account Value immediately before Excess Income of $2,100 | $115100.00 |
|  Excess Income amount | $2100.00 |
|  Ratio ($2,100/$115,100 = 1.82%) | 1.82% |
|  Annual Income Amount | $5400.00 |
|  1.82% Reduction in Annual Income Amount | $98.28 |
|  Annual Income Amount for future Annuity Years | $5301.72 |

---

**Example** **of Highest Daily Auto Step-Up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The first Lifetime Withdrawal was taken in a prior Annuity Year

• The Annuity Anniversary is July 1

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• The AIA for this Annuity Year is $12,000

• The applicable Withdrawal Percentage is 5%

• There were no excess withdrawals during the annuity year

• The highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000

• The Unadjusted Account Value on July 1 is $239,000

• There are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The first Lifetime Withdrawal was taken in a prior Annuity Year

• The Annuity Anniversary is July 1

• The AIA for this Annuity Year is $12,000

• The applicable Withdrawal Percentage is 5%

• There were no excess withdrawals during the annuity year

• The highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000

• The Unadjusted Account Value on July 1 is $239,000

• There are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Spousal Highest Daily Lifetime Income v2.1. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_8_956)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described earlier in this section will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with Spousal Highest Daily Lifetime Income v2.1. You must tell us at the time you take the partial withdrawal if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under Spousal Highest Daily Lifetime Income v2.1. If you do not designate the withdrawal as a Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Annual Income Amount, which is based on your Protected Withdrawal Value. Once you elect to take the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken. If you do not take a Non-Lifetime Withdrawal before beginning Lifetime Withdrawals, you lose the ability to take it.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value by the percentage the total withdrawal amount (including any applicable CDSC and Market Value Adjustment) represents of the then current Account Value immediately prior to the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a systematic withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first withdrawal under the program will be considered a Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit. Assume the following:

• The
 Issue Date is December 3

• Spousal
 Highest Daily Lifetime Income v2.1 is elected on September 4 of the following calendar year

• The
 Unadjusted Account Value at benefit election was $105,000

• Each
 designated life was 70 years old when he/she elected Spousal Highest Daily Lifetime Income v2.1

• No
 previous withdrawals have been taken under Spousal Highest Daily Lifetime Income v2.1

------

[Back to **Table of Contents**](#TOC_956)

On October 3 of the same year the benefit is elected, the Protected Withdrawal Value is $125,000 and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on that same October 3 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with Spousal Highest Daily Lifetime Income v2.1 will be reduced by the ratio of the total withdrawal amount to the Account Value just prior to the withdrawal being taken.

**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal amount | $15000 |
|  Divided by Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375 |

---

**Required Minimum Distributions**

See the sub-section entitled "[<u>Required Minimum Distributions</u>](#chapter_13-sect1_7_956)" in the prospectus section concerning Highest Daily Lifetime Income v2.1 for a discussion of the relationship between the RMD amount and the Annual Income Amount.

**Benefits Under Spousal Highest Daily Lifetime Income v2.1** 

• To
 the extent that your Unadjusted Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that
 are less than or equal to the Annual Income Amount, and amounts are still payable under Spousal Highest Daily Lifetime Income v2.1,
 we will make an additional payment, if any, for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year. Thus,
 in that scenario, the remaining Annual Income Amount would be payable even though your Unadjusted Account Value was reduced to
 zero. In subsequent Annuity Years we make payments that equal the Annual Income Amount as described in this section. We will make payments
 until the death of the first of the designated lives to die, and will continue to make payments until the death of the second designated
 life. After the Unadjusted Account Value is reduced to zero, you are not permitted to make additional Purchase Payments to your
 Annuity. **To the extent that cumulative partial withdrawals in an Annuity Year exceed the Annual Income Amount ("Excess** **Income") and reduce your Unadjusted Account Value to zero, Spousal Highest Daily Lifetime Income v2.1 terminates, we will** **make no further payments of the Annual Income Amount and no additional Purchase Payments will be permitted. However, if a** **partial withdrawal in the latter scenario was taken to satisfy a Required Minimum Distribution (as described above) under the** **Annuity then the benefit will not terminate, and we will continue to pay the Annual Income Amount in subsequent Annuity Years** **until the death of the second designated life.** 

• Please
 note that if your Unadjusted Account Value is reduced to zero, all payments in each Annuity Year subsequent to the Annuity Year your
 Account Value is reduced to zero will be treated as annuity payments. Also, any Death Benefit will terminate if withdrawals reduce your
 Unadjusted Account Value to zero. This means that any Death Benefit is terminated and no Death Benefit is payable if your Unadjusted
 Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal
 to, your Annual Income Amount.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

(I) apply
 your Unadjusted Account Value, less any applicable state required premium tax, to any annuity option available; or

(II) request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 We will make payments until the first of the designated lives to die, and will continue to make payments until the death of the
 second designated life. If, due to death of a designated life or divorce prior to Annuitization, only a single designated life remains, then annuity payments
 will be made as a life annuity for the lifetime of the designated life. We must receive your request in a form acceptable
 to us at our Service Center. If applying your Unadjusted Account Value, less any applicable tax charges, to our current life
 only (or joint life, depending on the number of designated lives remaining) annuity payment rates results in a higher annual payment,
 we will give you the higher annual payment.

• In
 the absence of an election when mandatory annuity payments are to begin, we currently make annual annuity payments as a joint and survivor
 or single (as applicable) life fixed annuity with eight payments certain, by applying the greater of the annuity rates then currently available or the
 annuity rates guaranteed in your Annuity. We reserve the right at any time to increase or decrease the certain period in order
 to comply with the Code (e.g., to shorten the period certain to match life expectancy under applicable IRS tables). The amount that will
 be applied to provide such annuity payments will be the greater of:

(I) the
 present value of the future Annual Income Amount payments (if no Lifetime Withdrawal was ever taken, we will calculate the Annual
 Income Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin). Such present value
 will be calculated using the greater of the joint and survivor or single (as applicable) life fixed annuity rates then currently available
 or the joint and survivor or single (as applicable) life fixed annuity rates guaranteed in your Annuity; and

(II) the
 Unadjusted Account Value.

------

[Back to **Table of Contents**](#TOC_956)

**Other Important Considerations**

• Withdrawals
 under the Spousal Highest Daily Lifetime Income v2.1 benefit are subject to all of the terms and conditions of the Annuity, including
 any applicable CDSC for the Non-Lifetime Withdrawal as well as partial withdrawals that exceed the Annual Income Amount. If you
 have an active systematic withdrawal program at the time you elect this benefit, the first systematic withdrawal that processes will be deemed a Lifetime
 Withdrawal. Withdrawals made while Spousal Highest Daily Lifetime Income v2.1 is in effect will be treated, for tax purposes,
 in the same way as any other withdrawals under the Annuity. Any withdrawals made under the benefit will be taken on a proportional
 basis from the Variable Options (including the AST Investment Grade Bond Portfolio) and the DCA Market Value Adjustment Options.
 If you have an active systematic withdrawal program and you elect this benefit, the program must withdraw funds on a proportional
 basis.

• Any
 Lifetime Withdrawal that does not cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount is not subject
 to a CDSC, even if the total amount of such withdrawals in any Annuity Year exceeds the maximum Free Withdrawal amount. For example,
 if your Free Withdrawal amount is $10,000 and your Annual Income Amount is $11,000, withdrawals of your entire Annual Income
 Amount in any Annuity Year would not trigger a CDSC. If you withdrew $12,000, however, $1,000 would be subject to a CDSC.

• You
 should carefully consider when to begin taking Lifetime Withdrawals. If you begin taking withdrawals early, you may maximize the time
 during which you may take Lifetime Withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals
 reduce your Unadjusted Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss
 with your financial professional when it may be appropriate for you to begin taking Lifetime Withdrawals.

• You
 cannot allocate Purchase Payments or transfer Unadjusted Account Value to or from the AST Investment Grade Bond Portfolio. **A** **summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **.** In addition, you can find a copy of the AST
 Investment Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>.

• Transfers
 to and from the Permitted Variable Options, the DCA Market Value Adjustment Options, and the AST Investment Grade Bond Portfolio
 triggered by the predetermined mathematical formula will not count toward the maximum number of free transfers allowable under
 an Annuity.

• Upon
 election of the benefit, 100% of your Unadjusted Account Value must be allocated to the Permitted Variable Options. We may amend the
 Permitted Variable Options from time to time. Changes to Permitted Variable Options, or to the requirements as to how you may allocate
 your Unadjusted Account Value with this benefit, will apply to new elections of the benefit and may apply to current participants in the
 benefit. To the extent that changes apply to current participants in the benefit, they will apply only upon re-allocation of Unadjusted Account Value, or
 to any additional Purchase Payments that are made after the changes have gone into effect. That is, we will not require such
 current participants to re-allocate Unadjusted Account Value to comply with any new requirements.

• If
 you elected this benefit, you may be required to reallocate to different Variable Options if you are currently invested in non-permitted Variable Options.
 On the Valuation Day we receive your request in Good Order, we will (i) sell Units of the non-permitted Variable Options and
 (ii) invest the proceeds of those sales in the Permitted Variable Options that you have designated. During this reallocation process, your Unadjusted Account
 Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected
 benefit will commence at the close of business on the following Valuation Day. Thus, the protection afforded by the newly-elected
 benefit will not begin until the close of business on the following Valuation Day.

• Any
 Death Benefit will terminate if withdrawals taken under Spousal Highest Daily Lifetime Income v2.1 reduce your Unadjusted Account Value
 to zero. This means that any Death Benefit is terminated and no Death Benefit is payable if your Unadjusted Account Value is reduced
 to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal to, your Annual Income Amount.
 (See " [<u>Triggers for Payment of the Death Benefit</u>](#chapter_11-sect1_9_956) "
 for more information.)

**Charge for Spousal Highest Daily Lifetime Income v2.1**

The maximum charge for Spousal Highest Daily Lifetime Income v2.1 is 2.00% annually of the greater of the Unadjusted Account Value and Protected Withdrawal Value. As discussed in "Highest Daily Auto Step-Up" above, we may increase the fee upon a step-up under this benefit. We deduct this charge on quarterly anniversaries of the benefit effective date, based on the values on the last Valuation Day prior to the quarterly anniversary. Thus, we deduct, on a quarterly basis, 0.50% of the greater of the prior Valuation Day's Unadjusted Account Value, or the prior Valuation Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options, including the AST Investment Grade Bond Portfolio. You will begin paying this charge as of the effective date of the benefit even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments.

If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for Spousal Highest Daily Lifetime Income v2.1 would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of

------

[Back to **Table of Contents**](#TOC_956)

the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, withdrawals may reduce the Unadjusted Account Value to zero. If the Unadjusted Account Value is reduced to zero as a result of a partial withdrawal that is not a withdrawal of Excess Income and the Annual Income Amount is greater than zero, we will make payments under the benefit.

**Election of and Designations under the Benefit**

Spousal Highest Daily Lifetime Income v2.1 can only be elected based on two designated lives. Designated lives must be natural persons who are each other's spouses at the time of election of the benefit. Currently, Spousal Highest Daily Lifetime Income v2.1 only may be elected if the Owner, Annuitant, and Beneficiary designations are as follows:

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the sole Beneficiary is the Owner's spouse. Each Owner/Annuitant
 and the Beneficiary must be at least 50 years old at the time of election; or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The Beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. Each Owner must be at least 50 years old at the time of election; or

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the Beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. Each of the Annuitant and the Contingent Annuitant must
 be at least 50 years old at the time of election.

We do not permit a change of Owner under this benefit, except as follows: (a) if one Owner dies and the surviving spousal Owner assumes the Annuity, or (b) if the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of Beneficiary designations under this benefit. However, if the Beneficiary is changed, the benefit may not be eligible to be continued upon the death of the first designated life. A change in designated lives will result in cancellation of Spousal Highest Daily Lifetime Income v2.1. If the designated lives divorce, Spousal Highest Daily Lifetime Income v2.1 may not be divided as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity appoint a new designated life upon re-marriage. Our current administrative procedure is to treat the division of an Annuity as a withdrawal from the existing Annuity. Any applicable CDSC will apply to such a withdrawal. The non-Owner spouse may then decide whether he or she wishes to use the withdrawn funds to purchase a new Annuity, subject to the rules that are current at the time of purchase.

Spousal Highest Daily Lifetime Income v2.1 can be elected at the time that you purchase your Annuity or after the Issue Date, subject to its availability. Effective December 31, 2020 we no longer allow elections of this benefit. If you elect Spousal Highest Daily Lifetime Income v2.1 and terminate it, you cannot re-elect it. See "[<u>Termination of Existing Benefits and Election of New Benefits</u>](#achapter_11-sect1_2_956)" for information pertaining to elections, termination and re-election of benefits. **Please note that if you terminate a living benefit and elect Spousal Highest Daily Lifetime Income v2.1, you lose the guarantees that** **you had accumulated under your existing benefit, and your guarantees under Spousal Highest Daily Lifetime Income v2.1 will be based on** **your Unadjusted Account Value on the effective date of Spousal Highest Daily Lifetime Income v2.1.** You and your financial professional should carefully consider whether terminating your existing benefit is appropriate for you. There is no guarantee that any benefit will be available for election at a later date.

If you wish to elect this benefit and you are currently participating in a systematic withdrawal program, amounts withdrawn under the program must be taken on a proportional basis from your Annuity's Variable Options (i.e., in direct proportion to the proportion that each such Variable Option bears to your total Account Value) in order for you to be eligible for the benefit. Thus, you may not elect Spousal Highest Daily Lifetime Income v2.1 so long as you participate in a systematic withdrawal program in which withdrawals are not taken on a proportional basis.

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and you cannot re-elect the benefit

**The benefit automatically terminates upon the first to occur of the following:**

**(I)** **upon our receipt of Due Proof of Death of the first designated life, if the surviving spouse opts to take the death benefit** **under the Annuity (rather than continue the Annuity) or if the surviving spouse is not an eligible designated life;** 

**(II)** **upon the death of the second designated life;** 

**(III)** **your termination of the benefit;** 

**(IV)** **your surrender of the Annuity;** 

**(V)** **the Latest Annuity Date or your election to begin receiving annuity payments (although if you have elected to take annuity** **payments in the form of the Annual Income Amount, we will continue to pay the Annual Income Amount);** 

**(VI)** **both the Unadjusted Account Value and Annual Income Amount equal zero due to a withdrawal of Excess Income;** 

**(VII)** **you allocate or transfer any portion of your Account Value to any Sub–account(s) to which you are not permitted to** **electively allocate or transfer Account Value (subject to state law – please see** [**<u>Appendix B</u>**](#chapter_19-sect1_1_956) **for Special Contract Provisions** **for Annuities Issued in Certain States);\* or** 

**(VIII)** **you cease to meet our requirements as described in "Election of and Designations under the Benefit" above or if we** **process a requested change that is not consistent with our allowed Owner, Annuitant or Beneficiary designations.** **\*** 

------

[Back to **Table of Contents**](#TOC_956)

\* Prior to terminating a benefit, we will send you written notice and provide you with an opportunity to reallocate amounts to the Permitted Variable Options or change your designations, as applicable.

"Due Proof of Death" is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claim forms from at least one Beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary.

Upon termination of Spousal Highest Daily Lifetime Income v2.1 other than upon the death of the second Designated Life or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. This final charge will be deducted even if it results in the Unadjusted Account Value falling below the Account Value Floor. However, if the amount in the Variable Options is not enough to pay the charge, we will reduce the fee to no more than the amount in the Variable Options. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options, and (ii) unless you are participating in an asset allocation program, transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If, prior to the transfer from the AST Investment Grade Bond Portfolio, the Unadjusted Account Value in the Variable Options is zero, we will transfer such amounts to the AST Government Money Market Variable Option.

**How Spousal Highest Daily Lifetime Income v2.1 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST** **Investment Grade Bond Portfolio** 

See "[<u>How Highest Daily Lifetime Income v2.1 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment</u> <u>Grade Bond Portfolio</u>](#achapter_11-sect1_3_956)" in the discussion of Highest Daily Lifetime Income v2.1 above for information regarding this component of the benefit.

**Additional Tax Considerations**

Please see the "[<u>Additional Tax Considerations</u>](#chapter_14-sect1_4_956)" section under Highest Daily Lifetime Income v2.1 above.

**HIGHEST DAILY LIFETIME INCOME v2.1 WITH HIGHEST DAILY DEATH BENEFIT**

**The Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit is no longer available for new business or post-issue election.**

Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit ("HD DB") is a lifetime guaranteed minimum withdrawal benefit, under which, subject to the terms of the benefit, we guarantee your ability to take a certain annual withdrawal amount for life. This benefit also provides for a highest daily death benefit, subject to the terms of the benefit. We reserve the right, in our sole discretion, to cease offering this benefit for new elections, at any time.

We offer a benefit that guarantees until the death of the single designated life (the Annuitant) the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Unadjusted Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the rest of your life provided that you do not take withdrawals of Excess Income that result in your Unadjusted Account Value being reduced to zero. We also permit you to designate the first withdrawal from your Annuity as a one-time "Non-Lifetime Withdrawal". You may wish to take a Non-Lifetime Withdrawal if you have an immediate need for access to your Account Value but do not wish to begin lifetime payments under the optional living benefit. All other partial withdrawals from your Annuity are considered a "Lifetime Withdrawal" under the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Unadjusted Account Value is reduced to zero (for any reason other than due to partial withdrawals of Excess Income) ("Guarantee Payments"). Highest Daily Lifetime Income v2.1 with HD DB may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and also wish to provide a death benefit to your Beneficiaries. You are not required to take withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. An integral component of Highest Daily Lifetime Income v2.1 with HD DB is the predetermined mathematical formula we employ that may periodically transfer your Unadjusted Account Value to and from the AST Investment Grade Bond Portfolio. See the section above entitled "How Highest Daily Lifetime Income v2.1 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio."

Highest Daily Lifetime Income v2.1 was offered with or without the HD DB component; however, you may only elect HD DB with Highest Daily Lifetime Income v2.1, and you must have elected the HD DB benefit at the time you elected Highest Daily Lifetime Income v2.1. Please note that if you terminate Highest Daily Lifetime Income v2.1 and elect Highest Daily Lifetime Income v2.1 with HD DB you lose the guarantees that you had accumulated under your existing benefit and will begin the new guarantees under the new benefit you elect based on your Unadjusted Account Value as of the date the new benefit becomes active. Highest Daily Lifetime Income v2.1 with HD DB was offered as an alternative to other lifetime withdrawal options. If you elect this benefit, it may not be combined with any other optional living or death benefit.

------

[Back to **Table of Contents**](#TOC_956)

The income benefit under Highest Daily Lifetime Income v2.1 with HD DB currently is based on a single "designated life" who is between the ages of 50 and 79 on the benefit effective date and received in Good Order. As long as your Highest Daily Lifetime Income v2.1 with HD DB is in effect, you must allocate your Unadjusted Account Value in accordance with the Permitted Variable Options and other Investment Option(s) available with this benefit. **For** **a more detailed description of the permitted Investment Options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956)**.** 

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Unadjusted Account Value falls to zero,** **if any particular withdrawal is a withdrawal of Excess Income (as described below) and brings your Unadjusted Account Value to zero, your** **Annual Income Amount also would fall to zero, and the benefit and the Annuity then would terminate. In that scenario, no further amount** **would be payable under Highest Daily Lifetime Income v2.1 with HD DB (including no payment of the Highest Daily Death Benefit Amount). As** **to the impact of such a scenario on any other optional benefit, please see the following sections in this prospectus: "**[**<u>Highest Daily Lifetime</u>** **<u>Income v2.1 Benefit</u>**](#chapter_11-sect1_3_956)**", "**[**<u>Spousal Highest Daily Lifetime Income v2.1 Benefit</u>**](#chapter_11-sect1_4_956)**" and "**[**<u>Spousal Highest Daily Lifetime Income v2.1 with Highest</u>** **<u>Daily Death Benefit</u>**](#chapter_11-sect1_6_956)**" (including no payment of the Highest Daily Death Benefit).**

You may also participate in the 6 or 12 Month DCA Program if you elect Highest Daily Lifetime Income v2.1 with HD DB, subject to the 6 or 12 Month DCA Program's rules. See the section of this prospectus entitled "[<u>Transfer and Rebalancing Program - 6 or 12 Month Dollar Cost Averaging Program</u>](#chapter_9-sect1_3_956)" for details. No Long-Term Market Value Adjustment Option is permitted if you elect any optional benefit.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is only used to calculate the initial Annual Income Amount and the benefit fee. The Protected Withdrawal Value is separate from your Unadjusted Account Value and not available as cash or a lump sum withdrawal. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Unadjusted Account Value. On each Valuation Day thereafter, until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraphs.

The "Periodic Value" is initially equal to the Unadjusted Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. The Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal. (See below for examples of proportional reductions.)

The Periodic Value on or before the Roll-Up End Date

On any day we recalculate the Periodic Value (a "Current Valuation Day") that falls on or before the tenth (10<sup>th</sup>) anniversary of the benefit effective date (referred to as the "Roll-Up End Date"), the Periodic Value is equal to the greater of:

(1) the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 5% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment made on the Current Valuation Day; and

(2) the
 Unadjusted Account Value on the current Valuation Day.

The Periodic Value after the Roll-Up End Date

On any Current Valuation Day that falls after the Roll-Up End Date, the Periodic Value is equal to the greater of:

(1) the
 Periodic Value for the Prior Valuation Day, plus the amount of any Purchase Payment made on the Current Valuation Day; and

(2) the Unadjusted Account Value on the current Valuation Day.

Because the 5% daily appreciation ends after the 10<sup>th</sup> anniversary of the benefit effective date, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit. If you begin taking Lifetime Withdrawals prior to your 10<sup>th</sup> benefit anniversary, the 5% daily appreciation will no longer increase your Protected Withdrawal Value.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Unadjusted Account Value upon any step-up, increased for subsequent Purchase Payments and reduced for subsequent Lifetime Withdrawals (see the examples that begin immediately prior to the sub-heading below entitled "Example of dollar-for-dollar reductions").

**Please note that if you elect Highest Daily Lifetime Income v2.1 with HD DB, your Account Value is not guaranteed, can fluctuate and may lose** **value.**

**Key Feature – Annual Income Amount under Highest Daily Lifetime Income v2.1 with HD DB.**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the Annuitant on the date of the first Lifetime Withdrawal. The percentages are: 3% for ages 50 to 54; 3.5% for ages 55 to less than 59½; 4% for ages 59½ to 64; 4.5% for ages 65 to 69; 5% for ages 70 to 84; and 6% for ages 85 or older. Under Highest Daily Lifetime Income v2.1 with HD DB, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year and also will reduce the Protected Withdrawal Value on a

------

[Back to **Table of Contents**](#TOC_956)

dollar-for-dollar basis. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Excess Income also will reduce the Protected Withdrawal Value by the same ratio.

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal is a withdrawal of Excess Income.

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of Excess Income, you cannot request
 an amount that would result in cumulative withdrawals in that Annuity Year exceeding your Annual Income Amount.

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of Excess Income, the amount you request plus the amount of any applicable CDSC and/or tax withholding cannot
 cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of Excess Income than if you request a gross withdrawal.

You may use the systematic withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit and must be taken as a gross withdrawal.

Any Purchase Payment that you make subsequent to the election of Highest Daily Lifetime Income v2.1 with HD DB and subsequent to the first Lifetime Withdrawal will (i) immediately increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment based on the age of the Annuitant at the time of the first Lifetime Withdrawal (the percentages are: 3% for ages 50 to 54; 3.5% for ages 55 to less than 59½; 4% for ages 59½ to 64; 4.5% for ages 65 to 69; 5% for ages 70 to 84; and 6% for ages 85 or older) and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment.

After your first Lifetime Withdrawal and before your Unadjusted Account Value is reduced to zero, you may make additional Purchase Payments, subject to the limits in the next paragraph. We reserve the right not to accept additional Purchase Payments if the Unadjusted Account Value becomes zero.

While Highest Daily Lifetime Income v2.1 with HD DB is in effect, we may limit, restrict, suspend or reject any additional Purchase Payment at any time, but would do so on a non-discriminatory basis. Circumstances where we may limit, restrict, suspend or reject additional Purchase Payments include, but are not limited to the following:

• if
 we determine that, as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount
 is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed
 to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s);

• if
 we are not then offering this benefit for new-issues; or

• if
 we are offering a modified version of this benefit for new issues.

If we exercise our right to restrict, suspend, reject and/or place limitations on the acceptance of additional Purchase Payments, you may no longer be able to fund your Highest Daily Lifetime Income v2.1 with HD DB. This means that you may no longer be able to increase the values associated with your Highest Daily Lifetime Income v2.1 with HD DB through additional Purchase Payments. When you elect this benefit and determine the amount of your Purchase Payment, you should consider the fact that we may suspend, reject or limit additional Purchase Payments at some point in the future.

We will exercise such reservation of right for all annuity purchasers in the same class of annuity in a non-discriminatory manner.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of Highest Daily Lifetime Income v2.1 with HD DB. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Auto Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Unadjusted Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the Annuitant on the Annuity Anniversary as of which the step-up would occur. The percentages are: 3% for ages 50 to 54; 3.5% for ages 55 to less than 59½; 4% for ages 59½ to 64; 4.5% for ages 65 to 69; 5% for ages 70 to 84; and 6% for ages 85 or older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. We will not automatically increase your Annual Income Amount solely as a result of your attaining a new age that is associated with a new age-based percentage. The Unadjusted Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. All daily valuations and annual step-ups will only occur on a Valuation Day. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Unadjusted Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Unadjusted

------

[Back to **Table of Contents**](#TOC_956)

Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time of any increase to your Annual Income Amount, we will also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up.

If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Highest Daily Lifetime Income v2.1 with HD DB has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Highest Daily Lifetime Income v2.1 with HD DB upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should consult with your financial professional and carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject. Any such increased charge will not be greater than the maximum charge set forth in the table entitled "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)."

If you are enrolled in a systematic withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount. You must notify us in order to increase the withdrawal amount of any systematic withdrawal program.

Highest Daily Lifetime Income v2.1 with HD DB does not affect your ability to take partial withdrawals under your Annuity, or limit your ability to take partial withdrawals that exceed the Annual Income Amount. Under Highest Daily Lifetime Income v2.1 with HD DB, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in any Annuity Year are less than the Annual Income Amount, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years. If your cumulative Lifetime Withdrawals in an Annuity Year exceed the Annual Income Amount, your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules).

Because both the Protected Withdrawal Value and Annual Income Amount are determined in a way that is not solely related to the Unadjusted Account Value, it is possible for the Unadjusted Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime Income v2.1 with HD DB or any other fees and charges under the Annuity. Assume the following for all three examples:

• The
 Issue Date is November 1

• Highest
 Daily Lifetime Income v2.1 with HD DB is elected on August 1 of the following calendar year

• The
 Annuitant was 70 years old when he/she elected Highest Daily Lifetime Income v2.1 with HD DB

• The first withdrawal is a Lifetime Withdrawal

Unless otherwise indicated, it is assumed that all dates referenced hereafter in these examples fall on consecutive business days.

**Example of Dollar-for-Dollar Reductions**

On October 28, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the designated life is between the ages of 70 and 84 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). The Highest Daily Death Benefit Amount is $115,420. Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including October 31) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500) and the Highest Daily Death Benefit Amount ($115,420 less $2,500 = $112,920).

**Example of Proportional Reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on October 29<sup>th</sup>, the Account Value at the time and immediately prior to this withdrawal is $118,000, and the Highest Daily Death Benefit Amount is $112,920. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0, and reduces the Highest Daily Death Benefit Amount on a dollar-for dollar basis to $109,420. The remaining withdrawal amount of $1,500 reduces the Annual Income Amount in future Annuity Years and the Highest Daily Death Benefit Amount on a proportional basis based on the ratio of the Excess Income to the Account Value immediately prior to the Excess Income. (Note that if there are other future withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount and the Highest Daily Death Benefit Amount).

------

[Back to **Table of Contents**](#TOC_956)

**Here is the calculation:**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; *<u>Annual Income Amount</u>* |  | &nbsp;&nbsp;&nbsp; *<u>Highest Daily Death Benefit Amount</u>* |  |
| &nbsp;&nbsp;&nbsp; Account Value before Lifetime Withdrawal | $118000.00 | &nbsp;&nbsp;&nbsp; Account Value before Lifetime Withdrawal | $118000.00 |
| &nbsp;&nbsp;&nbsp; Amount of "non" Excess Income | $3500.00 | &nbsp;&nbsp;&nbsp; Amount of "non" Excess Income | $3500.00 |
| &nbsp;&nbsp;&nbsp; Account Value immediately before Excess Income of $1,500 | $114500.00 | &nbsp;&nbsp;&nbsp; Account Value immediately before Excess Income of $1,500 | $114500.00 |
| &nbsp;&nbsp;&nbsp; Excess Income amount | $1500.00 | &nbsp;&nbsp;&nbsp; Excess Income amount | $1500.00 |
| &nbsp;&nbsp;&nbsp; Ratio ($1,500/$114,500 = 1.31%) | 1.31% | &nbsp;&nbsp;&nbsp; Ratio ($1,500/$114,500 = 1.31%) | 1.31% |
| &nbsp;&nbsp;&nbsp; Annual Income Amount | $6000.00 | &nbsp;&nbsp;&nbsp; HD DB Amount | $109420.00 |
| &nbsp;&nbsp;&nbsp; 1.31% Reduction in Annual Income Amount | $78.60 | &nbsp;&nbsp;&nbsp; 1.31% Reduction in Annual Income Amount | $1433.40 |
| &nbsp;&nbsp;&nbsp; Annual Income Amount for future Annuity Years | $5921.40 | &nbsp;&nbsp;&nbsp; Highest Annual Death Benefit Amount | $107986.60 |

---

**Example** **of Highest Daily Auto Step-Up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Highest Daily Lifetime Income v2.1 with HD DB. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_8_956)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described earlier in this section will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with Highest Daily Lifetime Income v2.1 with HD DB. You must tell us at the time you take the withdrawal if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under Highest Daily Lifetime Income v2.1 with HD DB. If you do not designate the withdrawal as a Non-Lifetime Withdrawal, the first withdrawal you

------

[Back to **Table of Contents**](#TOC_956)

make will be the first Lifetime Withdrawal that establishes your Annual Income Amount, which is based on your Protected Withdrawal Value. Once you elect to take the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken. If you do not take a Non-Lifetime Withdrawal before beginning Lifetime Withdrawals, you lose the ability to take it.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value. It will also proportionally reduce the Highest Daily Death Benefit Amount. It will reduce each value by the percentage the total withdrawal amount (including any applicable CDSC and Market Value Adjustment) represents of the then current Account Value immediately prior to the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a systematic withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first withdrawal under the program will be considered a Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit.

Assume the following:

• The
 Issue Date is December 3

• Highest
 Daily Lifetime Income v2.1 with HD DB is elected on September 4 of the following calendar year

• The
 Unadjusted Account Value at benefit election was $105,000

• The
 Annuitant was 70 years old when he/she elected Highest Daily Lifetime Income v2.1 with HD DB

• No
 previous withdrawals have been taken under Highest Daily Lifetime Income v2.1 with HD DB

On October 3 of the year the benefit is elected, the Protected Withdrawal Value is $125,000, the Highest Daily Death Benefit Amount is $115,420, and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on that same October 3 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with Highest Daily Lifetime Income v2.1 with HD DB will be reduced by the ratio of the total withdrawal amount to the Account Value just prior to the withdrawal being taken.

**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal amount | $15000.00 |
|  Divided by Account Value before withdrawal | $120000.00 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375.00 |
|  Highest Daily Death Benefit Amount | $100992.50 |

---

**Required Minimum Distributions**

Required Minimum Distributions ("RMD") for this Annuity must be taken by April 1<sup>st</sup> in the year following the date you turn the applicable age and by December 31<sup>st</sup> for subsequent calendar years. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. See "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for more information about the applicable age and for further discussions of RMDs.

If the annual RMD amount is greater than the Annual Income Amount, a withdrawal of the RMD amount will not be treated as a withdrawal of Excess Income, as long as the RMD amount is calculated by us for this Annuity and administered under a program we support each calendar year. If you are not participating in an RMD withdrawal program each calendar year, you can alternatively satisfy the RMD amount without it being treated as a withdrawal of Excess Income as long as the below rules are applied.

A "Calendar Year" runs from January 1 to December 31 of that year.

Withdrawals made from the Annuity during an Annuity Year to meet the RMD provisions of the Code will not be treated as withdrawals of Excess Income if they are taken during one Calendar Year.

If Lifetime Withdrawals are taken over two Calendar Years, the amount that will not be treated as a withdrawal of Excess Income is:

• the
 remaining Annual Income Amount for that Annuity Year; plus

• the
 second Calendar Year's RMD amount minus the Annual Income Amount (the result of which cannot be less than zero).

------

[Back to **Table of Contents**](#TOC_956)

**Example**

The following example is purely hypothetical and intended to illustrate the scenario described above. Note that withdrawals must comply with all IRS guidelines in order to satisfy the RMD for the current calendar year.

---

| | | |
|:---|:---|:---|
|  **First Calendar Year** | **Annuity Year** | **Second Calendar Year** |
|  01/01/2021 to 12/31/2021 | 06/01/2021 to 05/31/2022 | 01/01/2022 to 12/31/2022 |

---

Assume the following:

• RMD
 Amount for Both Calendar Years = $6,000;

• Annual
 Income Amount = $5,000; and

• A
 withdrawal of $2,000 was taken on 07/01/2021 (during the First Calendar Year) resulting in a remaining Annual Income Amount for the Annuity
 Year of $3,000.

The amount that can be taken between 01/03/2022 and 05/31/2022 without creating a withdrawal of Excess Income is $4,000. Here is the calculation:

• The
 remaining Annual Income for that Annuity Year ($3,000); plus

• The
 Second Calendar Year's RMD Amount minus the Annual Income Amount ($6,000 - $5,000 = $1,000).

If the $4,000 is withdrawn during the Annuity Year, the remaining Annual Income Amount will be $0 and the remaining RMD amount for the Second Calendar Year ($2,000) may be taken in the next Annuity Year beginning on 06/01/2022.

**Other Important Information**

• If,
 in any Annuity Year, your RMD amount is less than your Annual Income Amount, any withdrawals in excess of the Annual Income Amount
 will be treated as Excess Income.

• If
 you do not comply with the rules described above, any withdrawal that exceeds the Annual Income Amount will be treated as a withdrawal
 of Excess Income, which will reduce your Annual Income Amount in future Annuity Years. This may include a situation where you
 comply with the rules described above and then decide to take additional withdrawals after satisfying your RMD from the Annuity.

• If
 you take a partial withdrawal to satisfy RMD and designate that withdrawal as a Non-Lifetime Withdrawal, please note that all Non-Lifetime
 Withdrawal provisions will apply.

**Highest Daily Death Benefit**

A Death Benefit is payable under Highest Daily Lifetime Income v2.1 with HD DB (until we begin making Guarantee Payments under the benefit or annuity payments have begun) upon the death of the Owner (Annuitant if entity owned), also referred to as the "Single Designated Life", when we receive Due Proof of Death. The Death Benefit is the greatest of: the Minimum Death Benefit (described in this prospectus) or the Highest Daily Death Benefit Amount described below.

*Highest Daily Death Benefit Amount:*

On the date you elect Highest Daily Lifetime Income v2.1 with HD DB, the Highest Daily Death Benefit Amount is equal to your Unadjusted Account Value. On each subsequent Valuation Day, until the date of death of the decedent, the Highest Daily Death Benefit Amount will be the greater of:

(1) The
 Unadjusted Account Value on the current Valuation Day; and

(2) The
 Highest Daily Death Benefit Amount of the immediately preceding Valuation Day,

○ increased
 by any Purchase Payments made on the current Valuation Day and,

○ reduced
 by the effect of withdrawals made on the current Valuation Day, as described below.

Please note that the Highest Daily Death Benefit Amount does not have any guaranteed growth rate associated with it and therefore can be a different amount than any of the guaranteed values associated with the living benefit features of Highest Daily Lifetime Income v2.1 with HD DB.

A Non-Lifetime Withdrawal will proportionately reduce the Highest Daily Death Benefit Amount by the ratio of the Non-Lifetime Withdrawal to the Account Value immediately prior to the Non-Lifetime Withdrawal. A Lifetime Withdrawal that is not considered Excess Income will reduce the Highest Daily Death Benefit Amount (dollar-for-dollar) by the amount of the withdrawal. All or a portion of a Lifetime Withdrawal that is considered Excess Income will proportionately reduce the Highest Daily Death Benefit Amount by the ratio of the Excess Income to the Account Value immediately prior to the withdrawal of the Excess Income.

The Highest Daily Death Benefit will be calculated on the date of death of the decedent and will be:

• increased
 by the amount of any additional Adjusted Purchase Payments, and

• reduced
 by the effect of any withdrawals (as described in the preceding paragraph),

made during the period between the decedent's date of death and the date we receive Due Proof of Death.

------

[Back to **Table of Contents**](#TOC_956)

**Please note that the Highest Daily Death Benefit Amount is available only until we make Guarantee Payments under Highest Daily Lifetime** **Income v2.1 with HD DB or annuity payments begin. This means that any withdrawals that reduce your Unadjusted Account Value to zero will** **also reduce the Highest Daily Death Benefit Amount to zero.**

**All other provisions applicable to Death Benefits under your Annuity will continue to apply. See the "**[**<u>Basic Death Benefit</u>**](#chapter_11-sect1_11_956)**" section of this** **prospectus for more information pertaining to Death Benefits.**

**Benefits Under Highest Daily Lifetime Income v2.1 with HD DB**

• To
 the extent that your Unadjusted Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that
 are less than or equal to the Annual Income Amount, and Guarantee Payments amounts are still payable under Highest Daily Lifetime Income
 v2.1 with HD DB, we will make an additional payment, if any, for that Annuity Year equal to the remaining Annual Income Amount for
 the Annuity Year. Thus, in that scenario, the remaining Annual Income Amount would be payable even though your Unadjusted Account
 Value was reduced to zero. In subsequent Annuity Years we make payments that equal the Annual Income Amount as described in
 this section. We will make payments until the death of the single designated life. After the Unadjusted Account Value is reduced to zero, you will not be permitted
 to make additional Purchase Payments to your Annuity. **To the extent that cumulative partial withdrawals in** **an Annuity Year exceed the Annual Income Amount ("Excess Income") and reduce your Unadjusted Account Value to zero,** **Highest Daily Lifetime Income v2.1 with HD DB terminates, we will make no further payments of the Annual Income Amount** **(including no payment of the Highest Daily Death Benefit).** 

• Please
 note that if your Unadjusted Account Value is reduced to zero, all subsequent payments will be treated as Guarantee Payments. Further,
 the Guarantee Payments in each Annuity Year subsequent to the Annuity Year your Account Value is reduced to zero will be treated
 as annuity payments. Please note that if your Unadjusted Account Value is reduced to zero due to withdrawals or Annuitization, any
 Death Benefit value, including that of the HD DB feature, will terminate. This means that the HD DB is terminated and no Death Benefit
 is payable if your Unadjusted Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income
 Amount or less than or equal to, your Annual Income Amount.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

(1) apply
 your Unadjusted Account Value, less any applicable tax charges, to any annuity option available; or

(2) request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 If this option is elected, the Annual Income Amount will not increase after annuity payments have begun. We will make payments
 until the death of the single designated life. We must receive your request in a form acceptable to us at our Service Center.
 If applying your Unadjusted Account Value, less any applicable tax charges, to the life-only annuity payment rates results in a
 higher annual payment, we will give you the higher annual payment.

• In
 the absence of an election when mandatory annuity payments are to begin we currently make annual annuity payments in the form of a single
 life fixed annuity with eight payments certain, by applying the greater of the annuity rates then currently available or the annuity rates
 guaranteed in your Annuity. We reserve the right at any time to increase or decrease the period certain in order to comply with the Code
 (e.g., to shorten the period certain to match life expectancy under applicable IRS tables). The amount that will be applied to provide such annuity payments
 will be the greater of:

(1) the
 present value of the future Annual Income Amount payments (if no Lifetime Withdrawal was ever taken, we will calculate the Annual
 Income Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin). Such present value
 will be calculated using the greater of the single life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed
 in your Annuity; and

(2) the
 Unadjusted Account Value.

**Other Important Considerations**

• Withdrawals
 under Highest Daily Lifetime Income v2.1 with HD DB are subject to all of the terms and conditions of the Annuity, including any
 applicable CDSC for the Non-Lifetime Withdrawal as well as partial withdrawals that exceed the Annual Income Amount. If you have an
 active systematic withdrawal program at the time you elect this benefit, the first systematic withdrawal that processes will be deemed
 a Lifetime Withdrawal.
 Withdrawals made while Highest Daily Lifetime Income v2.1 with HD DB is in effect will be treated, for tax purposes, in
 the same way as any other withdrawals under the Annuity. Any withdrawals made under the benefit will be taken on a proportional basis from the Variable
 Options (including the AST Investment Grade Bond Portfolio) and the DCA Market Value Adjustment Options. If you have
 an active systematic withdrawal program and you elect this benefit, the program must withdraw funds on a proportional basis.

• Any
 Lifetime Withdrawal that does not cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount is not subject
 to a CDSC, even if the total amount of such withdrawals in any Annuity Year exceeds the maximum Free Withdrawal amount. For example,
 if your Free Withdrawal amount is $10,000 and your Annual Income Amount is $11,000, withdrawals of your entire Annual Income
 Amount in any Annuity Year would not trigger a CDSC. If you withdrew $12,000, however, $1,000 would be subject to a CDSC.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• You
 should carefully consider when to begin taking Lifetime Withdrawals. If you begin taking withdrawals early, you may maximize the time
 during which you may take Lifetime Withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals
 reduce your Unadjusted Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss
 with your financial professional when it may be appropriate for you to begin taking Lifetime Withdrawals.

• You
 cannot allocate Purchase Payments or transfer Unadjusted Account Value to or from the AST Investment Grade Bond Portfolio. **A** **summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) . You
 can find a copy of the AST Investment
 Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>.

• Transfers
 to and from the Permitted Variable Options, the DCA Market Value Adjustment Options, and the AST Investment Grade Bond Portfolio
 triggered by the predetermined mathematical formula will not count toward the maximum number of free transfers allowable under
 an Annuity.

• Upon
 election of the benefit, 100% of your Unadjusted Account Value must be allocated to the Permitted Variable Options. We may amend the
 Permitted Variable Options from time to time. Changes to the Permitted Variable Options, or to the requirements as to how you may allocate
 your Account Value with this benefit, will apply to new elections of the benefit and may apply to current participants in the benefit. To the extent that
 changes apply to current participants in the benefit, they will only apply upon re-allocation of Account Value, or to any additional
 Purchase Payments that are made after the changes have gone into effect. That is, we will not require such current participants to
 re-allocate Account Value to comply with any new requirements.

• If
 you elected this benefit, you may be required to reallocate to different Variable Options if you are currently invested in non-permitted Variable Options.
 On the Valuation Day we receive your request in Good Order, we will (i) sell Units of the non-permitted Variable Options and
 (ii) invest the proceeds of those sales in the Permitted Variable Options that you have designated. During this reallocation process, your Unadjusted Account
 Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected
 benefit will commence at the close of business on the following Valuation Day. Thus, the protection afforded by the newly-elected
 benefit will not begin until the close of business on the following Valuation Day.

• Any
 Death Benefit will terminate if withdrawals taken under Highest Daily Lifetime Income v2.1 with HD DB reduce your Unadjusted Account
 Value to zero. This means that any Death Benefit, including the HD DB, will terminate and no Death Benefit is payable if your Unadjusted
 Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal
 to, your Annual Income Amount. (See " [<u>Triggers for Payment of the Death Benefit</u>](#chapter_11-sect1_9_956) "
 for more information.)

**Charge for Highest Daily Lifetime Income v2.1 with HD DB**

The maximum charge for Highest Daily Lifetime Income v2.1 with HD DB is 2.00% annually of the greater of the Unadjusted Account Value and Protected Withdrawal Value. As discussed in "Highest Daily Auto Step-Up" above, we may increase the fee upon a step-up under this benefit. We deduct this charge on quarterly anniversaries of the benefit effective date, based on the values on the last Valuation Day prior to the quarterly anniversary. Thus, we deduct, on a quarterly basis, 0.50% of the greater of the prior Valuation Day's Unadjusted Account Value and the prior Valuation Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options, including the AST Investment Grade Bond Portfolio. You will begin paying this charge as of the effective date of the benefit even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments.

If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for Highest Daily Lifetime Income v2.1 with HD DB would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, partial withdrawals may reduce the Unadjusted Account Value to zero. If the Unadjusted Account Value is reduced to zero as a result of a partial withdrawal that is not a withdrawal of Excess Income and the Annual Income Amount is greater than zero, we will make payments under the benefit.

**Election of and Designations under the Benefit**

For Highest Daily Lifetime Income v2.1 with HD DB, there must be either a single Owner who is the same as the Annuitant, or if the Annuity is entity-owned, there must be a single natural person Annuitant. In either case, the Annuitant must be between 50 and 79 years old. Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime Income v2.1 with HD DB. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime Income v2.1 with HD DB, except if (a) the new Owner has the same taxpayer identification number as the previous Owner, (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

------

[Back to **Table of Contents**](#TOC_956)

Highest Daily Lifetime Income v2.1 with HD DB can be elected at the time that you purchase your Annuity or after the Issue Date, subject to its availability. Effective December 31, 2020 we no longer allow elections of this benefit. If you elect Highest Daily Lifetime Income v2.1 with HD DB and terminate it, you cannot re-elect it. See "[<u>Termination of Existing Benefits and Election of New Benefits</u>](#achapter_11-sect1_2_956)" for information pertaining to elections, termination and re-election of benefits. **Please note that if you terminate a living benefit and elect Highest Daily Lifetime Income v2.1 with HD DB, you lose** **the guarantees that you had accumulated under your existing benefit and your guarantees under Highest Daily Lifetime Income v2.1 with HD** **DB will be based on your Unadjusted Account Value on the effective date of Highest Daily Lifetime Income v2.1 with HD DB.** You and your financial professional should carefully consider whether terminating your existing benefit is appropriate for you. There is no guarantee that any benefit will be available for election at a later date.

If you wish to elect this benefit and you are currently participating in a systematic withdrawal program, amounts withdrawn under the program must be taken on a proportional basis from your Annuity's Variable Options (i.e., in direct proportion to the proportion that each such Variable Option bears to your total Account Value) in order for you to be eligible for the benefit. Thus, you may not elect Highest Daily Lifetime Income v2.1 with HD DB so long as you participate in a systematic withdrawal program in which withdrawals are not taken on a proportional basis.

**Termination of the Benefit**

You may terminate Highest Daily Lifetime Income v2.1 with HD DB at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit, including the HD DB, will terminate as of the date the termination is effective, and you cannot re-elect the benefit.

**The benefit automatically terminates upon the first to occur of the following:**

**(a)** **your termination of the benefit;** 

**(b)** **your surrender of the Annuity;** 

**(c)** **the Latest Annuity Date or your election to begin receiving annuity payments (although if you have elected to receive** **the Annual Income Amount in the form of annuity payments, we will continue to pay the Annual Income Amount);** 

**(d)** **our receipt of Due Proof of Death of the Owner (or Annuitant for entity-owned annuities);** 

**(e)** **both the Unadjusted Account Value and Annual Income Amount equal zero due to a withdrawal of Excess Income;** 

**(f)** **you allocate or transfer any portion of your Account Value to any Variable Option(s) to which you are not permitted to** **electively allocate or transfer Account Value (subject to state law – please see** [**<u>Appendix B</u>**](#chapter_19-sect1_1_956) **for Special Contract** **Provisions for Annuities Issued in Certain States);** **\*** **or** 

**(g)** **you cease to meet our requirements as described in "Election of and Designations under the Benefit" above or if we** **process a requested change that is not consistent with our allowed Owner, Annuitant or Beneficiary designations.\*** 

\* Prior to terminating a benefit, we will send you written notice and provide you with an opportunity to reallocate amounts to the Permitted Variable Options or change your designations, as applicable.

"Due Proof of Death" is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claim forms from at least one Beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary.

Upon termination of Highest Daily Lifetime Income v2.1 with HD DB, other than upon the death of the Owner or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. However, if the amount in the Variable Options is not enough to pay the charge, we will reduce the fee to no more than the amount in the Variable Options. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options, and (ii) unless you are participating in an asset allocation program, transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If, prior to the transfer from the AST Investment Grade Bond Portfolio, the Unadjusted Account Value in the Variable Options is zero, we will transfer such amounts to the AST Government Money Market Variable Option.

If a surviving spouse elects to continue the Annuity, Highest Daily Lifetime Income v2.1 with HD DB terminates upon Due Proof of Death. The spouse may newly elect the benefit subject to the restrictions discussed in "Election of and Designations under the Benefit" and "Termination of Your Highest Daily Lifetime Income v2.1" earlier in this benefit description.

**How Highest Daily Lifetime Income v2.1 with HD DB Transfers Unadjusted Account Value Between Your Permitted Variable Options and** **the AST Investment Grade Bond Portfolio**

See "[<u>How Highest Daily Lifetime Income v2.1 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment</u> <u>Grade Bond Portfolio</u>](#chapter_11-sect1_3_956)" in the discussion of Highest Daily Lifetime Income v2.1 above for information regarding this component of the benefit.

**Additional Tax Considerations**

Please see the "[<u>Additional Tax Considerations</u>](#chapter_14-sect1_4_956)" section under Highest Daily Lifetime Income v2.1 above.

------

[Back to **Table of Contents**](#TOC_956)

**SPOUSAL HIGHEST DAILY LIFETIME INCOME v2.1 WITH HIGHEST DAILY DEATH BENEFIT**

**The Spousal Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit is no longer available for new business or post-issue** **election.**

Spousal Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit ("HD DB") is a lifetime guaranteed minimum withdrawal benefit, under which, subject to the terms of the benefit, we guarantee your ability to take a certain annual withdrawal amount for the lives of two individuals who are spouses. This benefit also provides for a highest daily death benefit, subject to the terms of the benefit. We reserve the right, in our sole discretion, to cease offering this benefit for new elections at any time.

We offer a benefit that guarantees, until the death of the Remaining Designated Life (as described below) (the "designated lives", and each, a "designated life"), the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Unadjusted Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the lives of the designated lives, provided you have not made withdrawals of Excess Income that result in your Unadjusted Account Value being reduced to zero. We also permit you to designate the first withdrawal from your Annuity as a one-time "Non-Lifetime Withdrawal." You may wish to take a Non-Lifetime Withdrawal if you have an immediate need for access to your Account Value but do not wish to begin lifetime payments under the optional living benefit. All other withdrawals from your Annuity are considered a "Lifetime Withdrawal" under the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Unadjusted Account Value is reduced to zero (for any reason other than due to partial withdrawals of Excess Income) ("Guarantee Payments"). The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue Spousal Highest Daily Lifetime Income v2.1 with HD DB after the death of the first spouse (subject to the provisions below regarding a Remaining Designated Life), and also want to provide a death benefit. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit.

An integral component of Spousal Highest Daily Lifetime Income v2.1 with HD DB is the predetermined mathematical formula we employ that may periodically transfer your Unadjusted Account Value to and from the AST Investment Grade Bond Portfolio. See the section above entitled "[<u>How Highest</u> <u>Daily Lifetime Income v2.1 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond</u> <u>Portfolio</u>](#achapter_11-sect1_3_956)."

Spousal Highest Daily Lifetime Income v2.1 with HD DB is the spousal version of Highest Daily Lifetime Income v2.1 with HD DB. Spousal Highest Daily Lifetime Income v2.1 was offered with or without the HD DB component; however, you may only elect HD DB with Spousal Highest Daily Lifetime Income v2.1, and you must have elected the HD DB benefit at the time you elected Spousal Highest Daily Lifetime Income v2.1. Please note that if you terminate Spousal Highest Daily Lifetime Income v2.1 and elect Spousal Highest Daily Lifetime Income v2.1 with HD DB you lose the guarantees that you had accumulated under your existing benefit and will begin the new guarantees under the new benefit you elect based on your Unadjusted Account Value as of the date the new benefit becomes active. Spousal Highest Daily Lifetime Income v2.1 with HD DB was offered as an alternative to other lifetime withdrawal options. If you elect Spousal Highest Daily Lifetime Income v2.1 with HD DB and subsequently terminate the benefit, you will not be permitted to re-elect it in the future. See "[<u>Termination of Existing Benefits and Election of New Benefits</u>](#achapter_11-sect1_2_956)" for details.

Spousal Highest Daily Lifetime Income v2.1 with HD DB must be elected based on two designated lives, as described below. Each designated life must be between the ages of 50 and 79 years old on the benefit effective date. We will not divide an Annuity or the Spousal Highest Daily Lifetime Income v2.1 benefit due to a divorce. See "Election of and Designations under the Benefit" below for details. Spousal Highest Daily Lifetime Income v2.1 with HD DB is not available if you elect any other optional living or death benefit.

As long as your Spousal Highest Daily Lifetime Income v2.1 with HD DB is in effect, you must allocate your Unadjusted Account Value in accordance with the Permitted Variable Options and other Investment Option(s) available with this benefit. **For a more detailed description of the permitted** **Investment Options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956)**.**

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Unadjusted Account Value falls to zero,** **if any particular withdrawal is a withdrawal of Excess Income (as described below) and brings your Unadjusted Account Value to zero, your** **Annual Income Amount also would fall to zero, and the benefit and the Annuity then would terminate. In that scenario, no further amount** **would be payable under Spousal Highest Daily Lifetime Income v2.1 with HD DB. As to the impact of such a scenario on any other optional** **benefit, please see the following sections in this prospectus: "**[**<u>Highest Daily Lifetime Income v2.1 Benefit</u>**](#chapter_11-sect1_3_956)**", "**[**<u>Spousal Highest Daily Lifetime</u>** **<u>Income v2.1 Benefit</u>**](#chapter_11-sect1_4_956)**" and "**[**<u>Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit</u>**](#chapter_11-sect1_5_956)**" (including no payment of the Highest Daily** **Death Benefit).**

You may also participate in the 6 or 12 Month Dollar Cost Averaging Program if you elect Spousal Highest Daily Lifetime Income v2.1 with HD DB, subject to the 6 or 12 Month DCA Program's rules. See the section of this prospectus entitled "[<u>Transfer and Rebalaning - 6 or 12 Month Dollar Cost</u> <u>Averaging Program</u>](#chapter_9-sect1_3_956)" for details. No Long-Term Market Value Adjustment Option is permitted if you elect any optional benefit.

------

[Back to **Table of Contents**](#TOC_956)

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is only used to calculate the initial Annual Income Amount and the benefit fee. The Protected Withdrawal Value is separate from your Unadjusted Account Value and not available as cash or a lump sum withdrawal. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Unadjusted Account Value. On each Valuation Day thereafter until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraph.

The "Periodic Value" is initially equal to the Unadjusted Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. The Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal. (See below for examples of proportional reductions.)

The Periodic Value on or before the Roll-Up End Date

On any day we recalculate the Periodic Value (a "Current Valuation Day") that falls on or before the tenth (10<sup>th</sup>) anniversary of the benefit effective date (referred to as the "Roll-Up End Date"), the Periodic Value is equal to the greater of:

(1) the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 5% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment made on the Current Valuation Day; and

(2) the
 Unadjusted Account Value on the current Valuation Day.

The Periodic Value after the Roll-Up End date

On any Current Valuation Day that falls after the Roll-Up End Date, the Periodic Value is equal to the greater of:

(1) the
 Periodic Value for the Prior Valuation Day, plus the amount of any Purchase Payment made on the Current Valuation Day; and

(2) the
 Unadjusted Account Value on the current Valuation Day.

Because the 5% daily appreciation ends after the 10<sup>th</sup> anniversary of the benefit effective date, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit. If you begin taking Lifetime Withdrawals prior to your 10<sup>th</sup> benefit anniversary, the 5% daily appreciation will no longer increase your Protected Withdrawal Value.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Unadjusted Account Value upon any step-up, increased for subsequent Purchase Payments and reduced for subsequent Lifetime Withdrawals (see the examples that begin immediately prior to the sub-heading below entitled "Example of dollar-for-dollar reductions").

**Please note that if you elect Spousal Highest Daily Lifetime Income v2.1 with HD DB, your Account Value is not guaranteed, can fluctuate and** **may lose value.**

**Key Feature – Annual Income Amount under Spousal Highest Daily Lifetime Income v2.1 with HD DB**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the younger spousal designated life on the date of the first Lifetime Withdrawal after election of the benefit. The percentages are: 2.5% for ages 50 to 54; 3% for ages 55 to less than 59½; 3.5% for ages 59½ to 64; 4% for ages 65 to 69; 4.5% for ages 70 to 84; and 5.5% for ages 85 or older. We use the age of the younger designated life. If you elected this benefit and one of the Spousal Designated Lives becomes the Remaining Designated Life, we will continue to use the age of the younger of both the original Spousal Designated Lives for purposes of calculating the applicable Annual Income percentage. Under Spousal Highest Daily Lifetime Income v2.1 with HD DB, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year and also will reduce the Protected Withdrawal Value on a dollar-for-dollar basis. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount for any Annuity Year ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Unadjusted Account Value immediately prior to such withdrawal (see examples of this calculation below). Excess Income also will reduce the Protected Withdrawal Value by the same ratio.

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal is a withdrawal of Excess Income.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of Excess Income, you cannot request
 an amount that would result in cumulative withdrawals in that Annuity Year exceeding your Annual Income Amount.

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of Excess Income, the amount you request plus the amount of any applicable CDSC and/or tax withholding cannot
 cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of Excess Income than if you request a gross withdrawal.

You may use the systematic withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit and must be taken as a gross withdrawal.

Any Purchase Payment that you make subsequent to the election of Spousal Highest Daily Lifetime Income v2.1 with HD DB and subsequent to the first Lifetime Withdrawal will (i) immediately increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment based on the age of the younger designated life at the time of the first Lifetime Withdrawal (the percentages are: 2.5% for ages 50 to 54; 3% for ages 55 to less than 59½; 3.5% for ages 59½ to 64; 4% for ages 65 to 69; 4.5% for ages 70 to 84; and 5.5% for ages 85 or older), and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment.

After your first Lifetime Withdrawal and before your Unadjusted Account Value is reduced to zero, you may make additional Purchase Payments, subject to the limits in the next paragraph. We reserve the right not to accept additional Purchase Payments if the Unadjusted Account Value becomes zero.

While Spousal Highest Daily Lifetime Income v2.1 with HD DB is in effect, we may limit, restrict, suspend or reject any additional Purchase Payment at any time, but would do so on a non-discriminatory basis. Circumstances where we may limit, restrict, suspend or reject additional Purchase Payments include, but are not limited to, the following:

• if
 we determine that, as a result of the timing and amounts of your additional Purchase Payments and Withdrawals, the Annual Income Amount
 is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed
 to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s);

• if
 we are not then offering this benefit for new issues; or

• if
 we are offering a modified version of this benefit for new issues.

If we exercise our right to restrict, suspend, reject and/or place limitations on the acceptance of additional Purchase Payments, you may no longer be able to fund your Spousal Highest Daily Lifetime Income v2.1 with HD DB. This means that you may no longer be able to increase the values associated with your Spousal Highest Daily Lifetime Income v2.1 with HD DB through additional Purchase Payments. When you elect this benefit and determine the amount of your Purchase Payment, you should consider the fact that we may suspend, reject or limit additional Purchase Payments at some point in the future.

We will exercise such reservation of right for all annuity purchasers in the same class of annuity, in a non-discriminatory manner.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of this benefit. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Unadjusted Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the younger spousal designated life on the Annuity Anniversary as of which the step-up would occur. The percentages are 2.5% for ages 50 to 54; 3% for ages 55 to less than 59½; 3.5% for ages 59½ to 64; 4% for ages 65 to 69; 4.5% for ages 70 to 84; and 5.5% for ages 85 or older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. We will not automatically increase your Annual Income Amount solely as a result of your attaining a new age that is associated with a new age-based percentage. The Unadjusted Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary by performing a similar examination of the Unadjusted Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Unadjusted Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time of any increase to your Annual Income Amount, we will also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Spousal Highest Daily Lifetime Income v2.1 with HD DB has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Spousal Highest Daily Lifetime Income v2.1 with HD DB upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject. Any such increased charge will not be greater than the maximum charge set forth in the table entitled "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)".

------

[Back to **Table of Contents**](#TOC_956)

If you are enrolled in a systematic withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount. You must notify us in order to increase the withdrawal amount of any systematic withdrawal program.

Spousal Highest Daily Lifetime Income v2.1 with HD DB does not affect your ability to take withdrawals under your Annuity, or limit your ability to take partial withdrawals that exceed the Annual Income Amount. Under Spousal Highest Daily Lifetime Income v2.1 with HD DB, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years. If your cumulative Lifetime Withdrawals in an Annuity Year exceed the Annual Income Amount, your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules).

Because both the Protected Withdrawal Value and Annual Income Amount are determined in a way that is not solely related to the Unadjusted Account Value, it is possible for the Unadjusted Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Spousal Highest Daily Lifetime Income v2.1 with HD DB or any other fees and charges under the Annuity. Assume the following for all three examples:

• The
 Issue Date is November 1

• Spousal
 Highest Daily Lifetime Income v2.1 with HD DB is elected on August 1 of the following calendar year

• Both
 designated lives were 70 years old when they elected Spousal Highest Daily Lifetime Income v2.1 with HD DB

• The
 first withdrawal is a Lifetime Withdrawal

Unless otherwise indicated, all dates referenced hereafter in these examples occur in the same year the benefit is elected and it is assumed that they fall on consecutive business days.

**Example of Dollar-for-Dollar Reductions**

On October 28, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $5,400 (since the younger designated life is between the ages of 70 and 84 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 4.5% of the Protected Withdrawal Value, in this case 4.5% of $120,000). The Highest Daily Death Benefit Amount is $115,420. Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including October 31) is $2,900. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($5,400 less $2,500 = $2,900) and the Highest Daily Death Benefit Amount ($115,420 less $2,500 = $112,920.).

**Example of Proportional Reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on October 29, the Account Value at the time and immediately prior to this withdrawal is $118,000, and the Highest Daily Death Benefit Amount is $112,920. The first $2,900 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0, and reduces the Highest Daily Death Benefit Amount on a dollar-for dollar basis to $110,020. The remaining withdrawal amount of $2,100 reduces the Annual Income Amount in future Annuity Years and the Highest Daily Death Benefit Amount on a proportional basis based on the ratio of the Excess Income to the Account Value immediately prior to the Excess Income. (Note that if there are other future withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount and the Highest Daily Death Benefit Amount).

**Here is the calculation:**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; *<u>Annual Income Amount</u>* |  | &nbsp;&nbsp;&nbsp; *<u>Highest Daily Death Benefit Amount</u>* |  |
| &nbsp;&nbsp;&nbsp; Account Value before Lifetime Withdrawal | $118000.00 | &nbsp;&nbsp;&nbsp; Account Value before Lifetime Withdrawal | $118000.00 |
| &nbsp;&nbsp;&nbsp; Amount of "non" Excess Income | $2900.00 | &nbsp;&nbsp;&nbsp; Amount of "non" Excess Income | $2900.00 |
| &nbsp;&nbsp;&nbsp; Account Value immediately before Excess Income of $2,100 | $115100.00 | &nbsp;&nbsp;&nbsp; Account Value immediately before Excess Income of $2,100 | $115100.00 |
| &nbsp;&nbsp;&nbsp; Excess Income amount | $2100.00 | &nbsp;&nbsp;&nbsp; Excess Income amount | $2100.00 |
| &nbsp;&nbsp;&nbsp; Ratio ($2,100/$115,100 = 1.82%) | 1.82% | &nbsp;&nbsp;&nbsp; Ratio ($2,100/$115,100 = 1.82%) | 1.82% |
| &nbsp;&nbsp;&nbsp; Annual Income Amount | $5400.00 | &nbsp;&nbsp;&nbsp; HD DB Amount | $110020.00 |
| &nbsp;&nbsp;&nbsp; 1.82% Reduction in Annual Income Amount | $98.28 | &nbsp;&nbsp;&nbsp; 1.82% Reduction in Annual Income Amount | $2002.36 |
| &nbsp;&nbsp;&nbsp; Annual Income Amount for future Annuity Years | $5301.72 | &nbsp;&nbsp;&nbsp; Highest Daily Death Benefit Amount | $108017.64 |

---

------

[Back to **Table of Contents**](#TOC_956)

**Example** **of Highest Daily Auto Step-Up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Spousal Highest Daily Lifetime Income v2.1 with HD DB. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_8_956)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described earlier in this section will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with Spousal Highest Daily Lifetime Income v2.1 with HD DB. You must tell us at the time you take the partial withdrawal if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under Spousal Highest Daily Lifetime Income v2.1 with HD DB. If you do not designate the withdrawal as a Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Annual Income Amount, which is based on your Protected Withdrawal Value. Once you elect to take the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime withdrawals may be taken. If you do not take a Non-Lifetime Withdrawal before beginning Lifetime Withdrawals, you lose the ability to take it.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value. It will also proportionally reduce the Highest Daily Death Benefit Amount. It will reduce each value by the percentage the total withdrawal amount (including any applicable CDSC and Market Value Adjustment) represents of the then current Account Value immediately prior to the time of the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a systematic withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first withdrawal under the program will be considered a Lifetime Withdrawal.

------

[Back to **Table of Contents**](#TOC_956)

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit. Assume the following:

• The
 Issue Date is December 3

• Spousal
 Highest Daily Lifetime Income v2.1 with HD DB is elected on September 4 of the following calendar year

• The
 Unadjusted Account Value at benefit election was $105,000

• Each
 designated life was 70 years old when he/she elected Spousal Highest Daily Lifetime Income v2.1 with HD DB

• No
 previous withdrawals have been taken under Spousal Highest Daily Lifetime Income v2.1 with HD DB

On October 3 of the same year the benefit is elected, the Protected Withdrawal Value is $125,000, the Highest Daily Death Benefit Amount is $115,420, and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on that same October 3 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with Spousal Highest Daily Lifetime Income v2.1 with HD DB will be reduced by the ratio of the total withdrawal amount to the Account Value just prior to the withdrawal being taken.

**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal amount | $15000.00 |
|  Divided by Account Value before withdrawal | $120000.00 |
|  Equals Ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375.00 |
|  Highest Daily Death Benefit Amount | $100992.50 |

---

**Required Minimum Distributions**

See the sub-section entitled "Required Minimum Distributions" in the prospectus section above concerning [<u>Highest Daily Lifetime Income v2.1 with HD</u> <u>DB</u>](#chapter_11-sect1_5_956) for a discussion of the relationship between the RMD amount and the Annual Income Amount.

**Highest Daily Death Benefit**

A Death Benefit is payable under Spousal Highest Daily Lifetime Income v2.1 with HD DB (until we begin making Guarantee Payments under the benefit or annuity payments have begun) upon the death of the Remaining Designated Life when we receive Due Proof of Death. The Death Benefit is the greatest of: the Minimum Death Benefit (described in this prospectus) or the Highest Daily Death Benefit Amount described below.

*Highest Daily Death Benefit Amount:*

On the date you elect Spousal Highest Daily Lifetime Income v2.1 with HD DB, the Highest Daily Death Benefit Amount is equal to your Unadjusted Account Value. On each subsequent Valuation Day, until the date of death of the decedent, the Highest Daily Death Benefit Amount will be the greater of:

(1) The
 Unadjusted Account Value on the current Valuation Day; and

(2) The
 Highest Daily Death Benefit Amount of the immediately preceding Valuation Day,

○ increased
 by any Purchase Payments made on the current Valuation Day and,

○ reduced
 by the effect of withdrawals made on the current Valuation Day, as described below.

Please note that the Highest Daily Death Benefit Amount does not have any guaranteed growth rate associated with it and therefore can be a different amount than any of the guaranteed values associated with the living benefit features of Spousal Highest Daily Lifetime Income v2.1 with HD DB.

A Non-Lifetime Withdrawal will proportionately reduce the Highest Daily Death Benefit Amount by the ratio of the Non-Lifetime Withdrawal to the Account Value immediately prior to the Non-Lifetime Withdrawal. A Lifetime Withdrawal that is not considered Excess Income will reduce the Highest Daily Death Benefit Amount (dollar-for-dollar) by the amount of the withdrawal. All or a portion of a Lifetime Withdrawal that is considered Excess Income will proportionately reduce the Highest Daily Death Benefit Amount by the ratio of the Excess Income to the Account Value immediately prior to the withdrawal of the Excess Income.

The Highest Daily Death Benefit will be calculated on the date of death of the Remaining Designated Life and will be:

• increased
 by the amount of any additional Adjusted Purchase Payments, and

• reduced
 by the effect of any withdrawals (as described in the preceding paragraph),

made during the period between the decedent's date of death and the date we receive Due Proof of Death.

------

[Back to **Table of Contents**](#TOC_956)

**Please note that Highest Daily Death Benefit Amount is available only until we make Guarantee Payments under Spousal Highest Daily** **Lifetime Income v2.1 with HD DB or annuity payments begin. This means that any withdrawals that reduce your Unadjusted Account Value to** **zero will also reduce the Highest Daily Death Benefit Amount to zero.**

**All other provisions applicable to Death Benefits under your Annuity continue to apply. See the "**[**<u>Basic Death Benefit</u>**](#chapter_11-sect1_11_956)**" section of this** **prospectus for more information pertaining to Death Benefits.**

**Benefits Under Spousal Highest Daily Lifetime Income v2.1 with HD DB**

• To
 the extent that your Unadjusted Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that
 are less than or equal to the Annual Income Amount, and Guarantee Payments amounts are still payable under Spousal Highest Daily
 Lifetime Income v2.1 with HD DB, we will make an additional payment, if any, for that Annuity Year equal to the remaining Annual Income
 Amount for the Annuity Year. Thus, in that scenario, the remaining Annual Income Amount would be payable even though your Unadjusted
 Account Value was reduced to zero. In subsequent Annuity Years we make payments that equal the Annual Income Amount as
 described in this section. We will continue to make payments until the simultaneous deaths of both spousal designated lives, or the death
 of the Remaining Designated Life. After the Unadjusted Account Value is reduced to zero, you are not permitted to make additional Purchase
 Payments to your Annuity. **To the extent that cumulative partial withdrawals in an Annuity Year exceed the Annual** **Income Amount ("Excess Income") and reduce your Unadjusted Account Value to zero, Spousal Highest Daily Lifetime Income** **v2.1 with HD DB terminates, we will make no further payments of the Annual Income Amount and no additional Purchase** **Payments will be permitted.** 

• Please
 note that if your Unadjusted Account Value is reduced to zero, all subsequent payments will be treated as Guarantee Payments. Further,
 the Guarantee Payments in each Annuity Year subsequent to the Annuity Year your Account Value is reduced to zero will be treated
 as annuity payments.

• Please
 note that if your Unadjusted Account Value is reduced to zero due to withdrawals or Annuitization, any Death Benefit value, including
 that of the HD DB feature, will terminate. This means that the HD DB is terminated and no Death Benefit is payable if your Unadjusted
 Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal
 to, your Annual Income Amount.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

(1) apply
 your Unadjusted Account Value, less any applicable state required premium tax, to any annuity option available; or

(2) request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 We will make payments until the death of the Remaining Designated Life. We must receive your request in a form acceptable
 to us at our Service Center. If applying your Unadjusted Account Value, less any applicable tax charges, to our current life
 only (or joint life, depending on the number of designated lives remaining) annuity payment rates results in a higher annual payment,
 we will give you the higher annual payment.

• In
 the absence of an election when mandatory annuity payments are to begin, we currently make annual annuity payments as a joint and survivor
 or single (as applicable) life fixed annuity with eight payments certain, by applying the greater of the annuity rates then currently available or the
 annuity rates guaranteed in your Annuity. We reserve the right at any time to increase or decrease the certain period in order
 to comply with the Code (e.g., to shorten the period certain to match life expectancy under applicable IRS tables). The amount that will
 be applied to provide such annuity payments will be the greater of:

(1) the
 present value of the future Annual Income Amount payments (if no Lifetime Withdrawal was ever taken, we will calculate the Annual
 Income Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin). Such present value
 will be calculated using the greater of the joint and survivor or single (as applicable) life fixed annuity rates then currently available
 or the joint and survivor or single (as applicable) life fixed annuity rates guaranteed in your Annuity; and

(2) the
 Unadjusted Account Value.

**Other Important Considerations**

• Withdrawals
 under the Spousal Highest Daily Lifetime Income v2.1 with HD DB benefit are subject to all of the terms and conditions of the Annuity,
 including any applicable CDSC for the Non-Lifetime Withdrawal as well as partial withdrawals that exceed the Annual Income Amount.
 If you have an active systematic withdrawal program, the first systematic withdrawal that processes will be deemed a Lifetime Withdrawal.
 Withdrawals made while Spousal Highest Daily Lifetime Income v2.1 with HD DB is in effect will be treated, for tax purposes, in
 the same way as any other withdrawals under the Annuity. Any withdrawals made under the benefit will be taken on a proportional basis from the Variable
 Options (including the AST Investment Grade Bond Portfolio) and the DCA Market Value Adjustment Options. If you have
 an active systematic withdrawal program and you elect this benefit, the program must withdraw funds on a proportional basis.

• Any
 Lifetime Withdrawal that does not cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount is not subject
 to a CDSC, even if the total amount of such withdrawals in any Annuity Year exceeds the maximum Free Withdrawal amount. For example,
 if your Free Withdrawal amount is $10,000 and your Annual Income Amount is $11,000, withdrawals of your entire Annual Income
 Amount in any Annuity Year would not trigger a CDSC. If you withdrew $12,000, however, $1,000 would be subject to a CDSC.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• You
 should carefully consider when to begin taking Lifetime Withdrawals. If you begin taking withdrawals early, you may maximize the time
 during which you may take Lifetime Withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals
 reduce your Unadjusted Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss
 with your financial professional when it may be appropriate for you to begin taking Lifetime Withdrawals.

• You
 cannot allocate Purchase Payments or transfer Unadjusted Account Value to or from the AST Investment Grade Bond Portfolio. **A** **summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **.** In addition, you can find a copy of the AST
 Investment Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>.

• Transfers
 to and from the Permitted Variable Options, the DCA Market Value Adjustment Options, and the AST Investment Grade Bond Portfolio
 triggered by the predetermined mathematical formula will not count toward the maximum number of free transfers allowable under
 an Annuity.

• Upon
 election of the benefit, 100% of your Unadjusted Account Value must be allocated to the Permitted Variable Options. We may amend the
 Permitted Variable Options from time to time. Changes to Permitted Variable Options, or to the requirements as to how you may allocate
 your Unadjusted Account Value with this benefit, will apply to new elections of the benefit and may apply to current participants in the
 benefit. To the extent that changes apply to current participants in the benefit, they will apply only upon re-allocation of Unadjusted Account Value, or
 to any additional Purchase Payments that are made after the changes have gone into effect. That is, we will not require such
 current participants to re-allocate Unadjusted Account Value to comply with any new requirements.

• If
 you elected this benefit, you may be required to reallocate to different Variable Options if you are currently invested in non-permitted Variable Options.
 On the Valuation Day we receive your request in Good Order, we will (i) sell Units of the non-permitted Variable Options and
 (ii) invest the proceeds of those sales in the Variable Options that you have designated. During this reallocation process, your Unadjusted
 Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected
 benefit will commence at the close of business on the following Valuation Day. Thus, the protection afforded by the newly-elected
 benefit will not begin until the close of business on the following Valuation Day.

• Any
 Death Benefit will terminate if withdrawals taken under Spousal Highest Daily Lifetime Income v2.1 with HD DB reduce your Unadjusted
 Account Value to zero. This means that any Death Benefit, including the HD DB, will terminate and no Death Benefit is payable
 if your Unadjusted Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or
 less than or equal to, your Annual Income Amount. (See " [<u>Triggers for Payment of the Death Benefit</u>](#chapter_11-sect1_9_956) "
 for more information.)

• Spousal
 Continuation: If a Death Benefit is not payable on the death of a spousal designated life (e.g., if the first of the spousal designated
 lives to die is the Beneficiary but not an Owner), Spousal Highest Daily Lifetime Income v2.1 with HD DB will remain in force unless
 we are instructed otherwise.

**Charge for Spousal Highest Daily Lifetime Income v2.1 with HD DB**

The maximum charge for Spousal Highest Daily Lifetime Income v2.1 with HD DB is 2.00% annually of the greater of the Unadjusted Account Value and Protected Withdrawal Value. As discussed in "Highest Daily Auto Step-Up" above, we may increase the fee upon a step-up under this benefit. We deduct this charge on quarterly anniversaries of the benefit effective date, based on the values on the last Valuation Day prior to the quarterly anniversary. Thus, we deduct, on a quarterly basis, 0.50% of the greater of the prior Valuation Day's Unadjusted Account Value, or the prior Valuation Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options, including the AST Investment Grade Bond Portfolio. You will begin paying this charge as of the effective date of the benefit even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments.

If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for Spousal Highest Daily Lifetime Income v2.1 with HD DB would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, withdrawals may reduce the Unadjusted Account Value to zero. If the Unadjusted Account Value is reduced to zero as a result of a partial withdrawal that is not a withdrawal of Excess Income and the Annual Income Amount is greater than zero, we will make payments under the benefit.

**Election of and Designations under the Benefit**

Spousal Highest Daily Lifetime Income v2.1 with HD DB can only be elected based on two designated lives. Designated lives must be natural persons who are each other's spouses at the time of election of the benefit. Currently, Spousal Highest Daily Lifetime Income v2.1 with HD DB only may be elected if the Owner, Annuitant, and Beneficiary designations are as follows:

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the sole Beneficiary is the Owner's spouse. Each Owner/Annuitant
 and the Beneficiary must be between 50-79 years old at the time of election; or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The Beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. Each Owner must be between 50 and 79 years old at the time of election;
 or

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the Beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. Each of the Annuitant and the Contingent Annuitant must
 be between 50 and 79 years old at the time of election.

Remaining Designated Life: A Remaining Designated Life must be a natural person and must have been listed as one of the spousal designated lives when the benefit was elected. A spousal designated life will become the Remaining Designated Life on the earlier of the death of the first of the spousal designated lives to die or divorce from the other spousal designated life while the benefit is in effect. That said, if a spousal designated life is removed as Owner, Beneficiary, or Annuitant due to divorce, the other spousal designated life becomes the Remaining Designated Life when we receive notice of the divorce, and any other documentation we require, in Good Order. Any new Beneficiary(ies) named by the Remaining Designated Life will not be a spousal designated life.

We do not permit a change of Owner under this benefit, except as follows: (a) if one Owner dies and the surviving spousal Owner assumes the Annuity, or (b) if the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of Beneficiary designations under this benefit, however if the Beneficiary is changed, the benefit may not be eligible to be continued upon the death of the first designated life. A change in designated lives will result in cancellation of Spousal Highest Daily Lifetime Income v2.1 with HD DB. If the designated lives divorce, Spousal Highest Daily Lifetime Income v2.1 with HD DB may not be divided as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity appoint a new designated life upon re-marriage. Our current administrative procedure is to treat the division of an Annuity as a withdrawal from the existing Annuity. The non-Owner spouse may then decide whether he or she wishes to use the withdrawn funds to purchase a new Annuity, subject to the rules that are current at the time of purchase.

Spousal Highest Daily Lifetime Income v2.1 with HD DB can be elected at the time that you purchase your Annuity or after the Issue Date, subject to its availability. Effective December 31, 2020 we no longer allow elections of this benefit. If you elect Spousal Highest Daily Lifetime Income v2.1 with HD DB and terminate it, you cannot re-elect it. See "[<u>Termination of Existing Benefits and Election of New Benefits</u>](#achapter_11-sect1_2_956)" for information pertaining to elections, termination and re-election of benefits. **Please note that if you terminate a living benefit and elect Spousal Highest Daily Lifetime Income v2.1** **with HD DB, you lose the guarantees that you had accumulated under your existing benefit, and your guarantees under Spousal Highest Daily** **Lifetime Income v2.1 with HD DB will be based on your Unadjusted Account Value on the effective date of Spousal Highest Daily Lifetime** **Income v2.1 with HD DB**. You and your financial professional should carefully consider whether terminating your existing benefit is appropriate for you. There is no guarantee that any benefit will be available for election at a later date.

If you wish to elect this benefit and you are currently participating in a systematic withdrawal program, amounts withdrawn under the program must be taken on a proportional basis from your Annuity's Variable Options (i.e., in direct proportion to the proportion that each such Variable Option bears to your total Account Value) in order for you to be eligible for the benefit. Thus, you may not elect Spousal Highest Daily Lifetime Income v2.1 so long as you participate in a systematic withdrawal program in which withdrawals are not taken on a proportional basis.

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and you cannot re-elect the benefit.

**The benefit automatically terminates upon the first to occur of the following:** 

**(I)** **upon our receipt of Due Proof of Death of the first designated life who is an Owner (or who is the Annuitant if entity** **owned), if the Remaining Designated Life elects not to continue the Annuity;** 

**(II)** **upon our receipt of Due Proof of Death of an Owner (or Annuitant if entity owned) if the surviving spouse is not eligible to** **continue the benefit because such spouse is not a spousal designated life and there is any Unadjusted Account Value on** **the date of death;** 

**(III)** **upon our receipt of Due Proof of Death of the Remaining Designated Life if a Death Benefit is payable under this benefit;** 

**(IV)** **your termination of the benefit;** 

**(V)** **your surrender of the Annuity;** 

**(VI)** **the Latest Annuity Date or your election to begin receiving annuity payments (although if you have elected to take annuity** **payments in the form of the Annual Income Amount, we will continue to pay the Annual Income Amount);** 

**(VII)** **both the Unadjusted Account Value and Annual Income Amount equal zero due to a withdrawal of Excess Income;** 

**(VIII)** **you allocate or transfer any portion of your Account Value to any Variable Option(s) to which you are not permitted to** **electively allocate or transfer Account Value (subject to state law – please see** [**<u>Appendix B</u>**](#chapter_19-sect1_1_956) **for Special Contract Provisions** **for Annuities Issued in Certain States);\* or** 

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**(IX)** **you cease to meet our requirements as described in "Election of and Designations under the Benefit" above or if we** **process a requested change that is not consistent with our allowed Owner, Annuitant or Beneficiary designations.** **\*** 

\* Prior to terminating a benefit, we will send you written notice and provide you with an opportunity to reallocate amounts to the Permitted Variable Options or change your designations, as applicable.

"Due Proof of Death" is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claim forms from at least one Beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary.

Upon termination of Spousal Highest Daily Lifetime Income v2.1 with HD DB other than upon the death of the Remaining Designated Life or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. This final charge will be deducted even if it results in the Unadjusted Account Value falling below the Account Value Floor. However, if the amount in the Variable Options is not enough to pay the charge, we will reduce the fee to no more than the amount in the Variable Options. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options, and (ii) unless you are participating in an asset allocation program, transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If, prior to the transfer from the AST Investment Grade Bond Portfolio, the Unadjusted Account Value in the Variable Options is zero, we will transfer such amounts to the AST Government Money Market Variable Option.

**How Spousal Highest Daily Lifetime Income v2.1 with HD DB Transfers Unadjusted Account Value Between Your Permitted Variable Options** **and the AST Investment Grade Bond Portfolio.**

See "[<u>How Highest Daily Lifetime Income v2.1 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment</u> <u>Grade Bond Portfolio</u>](#achapter_11-sect1_3_956)" in the discussion of Highest Daily Lifetime Income v2.1 above for information regarding this component of the benefit.

**Additional Tax Considerations**

Please see "Additional Tax Considerations" under Highest Daily Lifetime Income v2.1.

***GUARANTEED RETURN OPTION PLUS II (GRO PLUS II)***

GRO Plus II is available only for Annuities issued with an application signed prior to January 24, 2011, subject to availability which may vary by firm. Guaranteed Return Option Plus II (GRO Plus II) is a form of "guaranteed minimum accumulation benefit" that guarantees a specified Unadjusted Account Value at one or more dates in the future. If you participate in this benefit, you are subject to the predetermined mathematical formula described below that transfers Account Value between your Variable Options and an AST bond Portfolio.

Under GRO Plus II, we guarantee that on the seventh anniversary of benefit election, and each anniversary thereafter, the Unadjusted Account Value will be not less than the Unadjusted Account Value on the date that the benefit is added to your Annuity (adjusted for subsequent Purchase Payments and withdrawals as detailed below). We refer to this initial guarantee as the "base guarantee." In addition to the base guarantee, GRO Plus II offers the possibility of an enhanced guarantee. You may "manually" lock in an enhanced guarantee once per "benefit year" (i.e., a year beginning on the date you acquired the benefit and each anniversary thereafter) if your Unadjusted Account Value on that Valuation Day exceeds the amount of any outstanding base guarantee or enhanced guarantee. If you elect to manually lock-in an enhanced guarantee on an anniversary of the effective date of the benefit, that lock-in will not count towards the one elective manual lock-in you may make each benefit year. We guarantee that the Unadjusted Account Value locked-in by that enhanced guarantee will not be any less seven years later, and each anniversary of that date thereafter. In addition, you may elect an automatic enhanced guarantee feature under which, if your Unadjusted Account Value on a benefit anniversary exceeds the highest existing guarantee by 7% or more, we guarantee that such Unadjusted Account Value will not be any less seven benefit anniversaries later and each benefit anniversary thereafter. You may maintain only one enhanced guarantee in addition to your base guarantee. Thus, when a new enhanced guarantee is created, it cancels any existing enhanced guarantee. However, the fact that an enhanced guarantee was effected automatically on a benefit anniversary does not prevent you from "manually" locking-in an enhanced guarantee during the ensuing benefit year. In addition, the fact that you "manually" locked in an enhanced guarantee does not preclude the possibility of an automatic enhanced guarantee on the subsequent benefit anniversary. Please note that upon creation of a new enhanced guarantee, an immediate transfer to an AST bond Portfolio an enhanced guarantee without also terminating the base guarantee. If you do, any amounts held in the AST bond Portfolio (which is used as part of this benefit) with respect to that enhanced guarantee will be transferred to your other Variable Options in accordance with your most recent allocation instructions, and if none exist, then on a proportional basis to your Variable Options (see below "Key Feature – Allocation of Unadjusted Account Value"). Amounts held in an AST bond Portfolio with respect to the base guarantee will not be transferred as a result of the termination of an enhanced guarantee. You may not lock in an enhanced guarantee, either manually or through our optional automatic program, within seven years prior to the Latest Annuity Date (please see "[<u>Annuity Period</u>](#chapter_10-sect1_1_956)" for further information). This also applies to a new Owner who has acquired the Annuity from the original Owner.

------

[Back to **Table of Contents**](#TOC_956)

In this section, we refer to a date on which the Unadjusted Account Value is guaranteed to be present as the "Maturity Date". If the Account Value on the Maturity Date is less than the guaranteed amount, we will contribute funds from our general account to bring your Unadjusted Account Value up to the guaranteed amount. If the Maturity Date is not a Valuation Day, then we would contribute such an amount on the next Valuation Day. We will allocate any such amount to each Variable Option (other than the AST bond Portfolio used with this benefit and described below) in accordance with your most recent allocation instructions, which means: a) the Custom Portfolio Program or, b) if you are not participating in this program, then such amounts will be allocated to your Variable Options on a proportional basis. Regardless of whether we need to contribute funds at the end of a Guarantee Period, we will at that time transfer all amounts held within the AST bond Portfolio associated with the maturing guarantee in accordance with your most recent allocation instructions, which means: a) the Custom Portfolio Program or, b) if you are not participating in this program, then such amounts will be allocated to your Variable Options on a proportional basis. If the former (i.e., an asset allocation program), your Unadjusted Account Value will be transferred according to the program.

Any addition or transferred amount may be subsequently re-allocated based on the predetermined mathematical formula described below.

The guarantees provided by the benefit exist only on the applicable Maturity Date(s). However, due to the ongoing monitoring of your Unadjusted Account Value, and the transfer of Unadjusted Account Value to support your future guarantees, the benefit may provide some protection from significant Variable Option losses. For this same reason, the benefit may limit your ability to benefit from Variable Option increases while it is in effect.

We increase both the base guarantee and any enhanced guarantee by the amount of each Purchase Payment (including any associated Purchase Credits) made subsequent to the date that the guarantee was established. For example, if the effective date of the benefit was January 3, 2011 and the Account Value was $100,000 on that date, then a $30,000 Purchase Payment made on March 30, 2012 would increase the base guarantee amount to $130,000.

If you make a withdrawal (including any CDSC), we effect on a proportional basis a reduction to each existing guarantee amount. We calculate on a proportional basis a reduction by reducing each existing guarantee amount by the percentage represented by the ratio of the withdrawal amount (including any CDSC) to your Unadjusted Account Value immediately prior to the withdrawal.

If you make a withdrawal, we will deduct the withdrawal amount on a proportional basis from each of your Variable Options (including the AST bond Portfolio used with this benefit).

**EXAMPLE**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of a withdrawal on each guarantee amount under this benefit.

Assume the following:

• The
 Issue Date is December 1, 2010

• The
 benefit is elected on December 1, 2010

• The
 Unadjusted Account Value on December 1, 2010 is $200,000, which results in a base guarantee of $200,000

• An
 enhanced guarantee amount of $350,000 is locked in on December 1, 2011

• The
 Unadjusted Account Value immediately prior to the withdrawal is equal to $380,000

• for
 purposes of simplifying these assumptions, we assume hypothetically that no CDSC is applicable (in general, a CDSC could be inapplicable
 based on the Free Withdrawal provision if the withdrawal was within the CDSC period, and would be inapplicable to the C Series)

If a withdrawal of $50,000 is taken on December 15, 2011, all guarantee amounts will be reduced by the ratio of the total withdrawal amount to the Unadjusted Account Value just prior to the withdrawal being taken.

**Here is the calculation (figures are rounded):**

---

| | |
|:---|:---|
|  Withdrawal Amount | $50000 |
|  Divided by Unadjusted Account Value before withdrawal | $380000 |
|  Equals ratio | 13.16% |
|  All guarantees will be reduced by the above ratio (13.16%). |  |
|  Base guarantee amount | $173680 |
|  Enhanced guarantee amount | $303940 |

---

**Key Feature – Allocation of Unadjusted Account Value For GRO Plus II (and Highest Daily GRO II, if elected prior to July 16, 2010)**

We limit the Variable Options to which you may allocate Unadjusted Account Value if you elect GRO Plus II or Highest Daily GRO II (HD GRO II) (see below for information pertaining to HD GRO II). For purposes of these benefits, we refer to those permitted Investment Options (other than the required bond Portfolios discussed below) as the "Permitted Variable Options."

------

[Back to **Table of Contents**](#TOC_956)

GRO Plus II and HD GRO II use a predetermined mathematical formula to help us manage your guarantees through all market cycles. The formula applicable to you may not be altered once you elect the benefit. However, subject to regulatory approval, we do reserve the right to amend the formula for newly-issued Annuities that elect or re-elect GRO Plus II and HD GRO II and for existing Annuities that elect the benefit post-issue. This required formula helps us manage our financial exposure under GRO Plus II and HD GRO II, by moving assets out of certain s if dictated by the formula (see below). In essence, we seek to preserve Unadjusted Account Value, by transferring them to a more stable option (i.e., one or more specified bond Portfolios of Advanced Series Trust). We refer to the Variable Options corresponding to these bond Portfolios collectively as the "AST bond Portfolio Variable Options". The formula also contemplates the transfer of Unadjusted Account Value from an AST bond Portfolio Variable Option to the other Variable Options. Because these restrictions and the use of the formula lessen the likelihood that your Unadjusted Account Value will be reduced below the base and/or enhanced guarantee(s), they also reduce the likelihood that we will make any payments under this benefit. They may also limit your upside potential for growth. **The formula is set forth in** [**<u>Appendix G</u>**](#chapter_24-sect1_1_956) **of this prospectus. A summary description of each AST bond Portfolio** **Variable Option appears** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956)**.** In addition, you can find a copy of the AST bond Portfolio prospectus by going to<br><u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>.

For purposes of operating the GRO Plus II formula, we have included within each Annuity several AST bond Portfolio Variable Options. Each AST bond Portfolio is unique, in that its underlying investments generally mature at different times. For example, there would be an AST bond Portfolio whose underlying investments generally mature in 2021, an AST bond Portfolio whose underlying investments generally mature in 2022, and so forth. As discussed below, the formula determines the appropriate AST bond Portfolio Variable Option to which Account Value is transferred. We will introduce new AST bond Portfolio Variable Options in subsequent years, to correspond generally to the length of new Guarantee Periods that are created under this benefit (and the Highest Daily GRO II benefit). If you have elected GRO Plus II or HD GRO II, you may have Unadjusted Account Value allocated to an AST bond Portfolio Variable Option only by operation of the formula, and thus you may not allocate Purchase Payments to or make transfers to or from an AST bond Portfolio Variable Option.

Although we employ several AST bond Portfolio Variable Options for purposes of the benefit, the formula described in the next paragraph operates so that your Unadjusted Account Value may be allocated to only one AST bond Portfolio Variable Option at one time. The formula determines the appropriate AST Bond Portfolio Variable Option to which Unadjusted Account Value is transferred. On any day a transfer into or out of the AST bond Portfolio Variable Option is made the formula may dictate that a transfer out of one AST bond Portfolio Variable Option be made into another AST bond Portfolio Variable Option. Any transfer into an AST bond Portfolio Variable Option will be directed to the AST bond Portfolio Variable Option associated with the "current liability", as described below. As indicated, the formula and AST bond Portfolio Variable Options are employed with this benefit to help us mitigate the financial risks under our guarantee. Thus, the formula applicable to you under the benefit determines which AST bond Portfolio Variable Option your Account Value is transferred to, and under what circumstances a transfer is made. Please note that upon creation of a new enhanced guarantee, an immediate transfer to the AST Bond Portfolio Variable Option associated with the "current liability" may occur, depending on the discount rate (as described in the next paragraph) used to determine the present value of each of your guarantees. **As such, a low discount rate could cause a** **transfer of Unadjusted Account Value into an AST bond Portfolio Variable Option, despite the fact that your Unadjusted Account Value had** **increased.**

In general, the formula works as follows. On each Valuation Day, the formula automatically performs an analysis with respect to each guarantee that is outstanding. For each outstanding guarantee, the formula begins by determining the present value on that Valuation Day that, if appreciated at the applicable "discount rate", would equal the applicable guarantee amount on the Maturity Date. As detailed in the formula, the discount rate is an interest rate determined by taking a benchmark index used within the financial services industry and then reducing that interest rate by a prescribed adjustment. Once selected, we do not change the applicable benchmark index (although we do reserve the right to use a new benchmark index if the original benchmark is discontinued). The greatest of each such present value is referred to as the "current liability" in the formula. The formula compares the current liability to the amount of your Unadjusted Account Value held within the AST bond Portfolio Variable Option and to your Unadjusted Account Value held within the Permitted Variable Options. If the current liability, reduced by the amount held within the AST bond Portfolio Variable Option, and divided by the amount held within the Permitted Variable Options, exceeds an upper target value (currently, 85%), then the formula will make a transfer into the AST bond Portfolio Variable Option, in the amount dictated by the formula (subject to the 90% cap discussed below). If the current liability, reduced by the amount held within the AST bond Portfolio Variable Option, and divided by the amount within the Permitted Variable Options, is less than a lower target value (currently, 79%), then the formula will transfer Unadjusted Account Value from the AST bond Portfolio Variable Option into the Permitted Variable Options, in the amount dictated by the formula.

The formula will not execute a transfer to the AST bond Portfolio Variable Option that results in more than 90% of your Unadjusted Account Value being allocated to the AST bond Portfolio Variable Option ("90% cap"). Thus, on any Valuation Day, if the formula would require a transfer to the AST bond Portfolio Variable Option that would result in more than 90% of the Unadjusted Account Value being allocated to the AST bond Portfolio Variable Option, only the amount that results in exactly 90% of the Unadjusted Account Value being allocated to the AST bond Portfolio Variable Option will be transferred. Additionally, future transfers into the AST bond Portfolio Variable Option will not be made (regardless of the performance of the AST bond Portfolio Variable Option and the Permitted Variable Options) at least until there is first a transfer out of the AST bond Portfolio Variable Option. Once this transfer occurs out of the AST bond Portfolio Variable Option, future amounts may be transferred to or from the AST bond Portfolio Variable Option if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the AST bond Portfolio Variable Option that results in greater than 90% of your Unadjusted Account Value being allocated to the AST bond Portfolio Variable Option. However, it is possible that, due to the investment performance of your allocations in the AST bond Portfolio Variable Option and your allocations in the Permitted Variable Options you have selected, your Unadjusted Account Value could be more than 90% invested in the AST bond Portfolio Variable Option. If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the AST bond Portfolio Variable

------

[Back to **Table of Contents**](#TOC_956)

Option at least until there is first a transfer out of the AST bond Portfolio Variable Option, regardless of how much of your Unadjusted Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Unadjusted Account Value is allocated to the AST bond Portfolio Variable Option, and the formula will still not transfer any of your Unadjusted Account Value to the AST bond Portfolio Variable Option (at least until there is first a transfer out of the AST bond Portfolio Variable Option).

For example,

• March
 17, 2011 – a transfer is made to the AST bond Portfolio Variable Option that results in the 90% cap being met and now $90,000 is allocated to the
 AST bond Portfolio Variable Option and $10,000 is allocated to the Permitted Variable Options.

• March
 18, 2011 – you make an additional Purchase Payment of $10,000. No transfers have been made from the AST bond Portfolio Variable
 Option to the Permitted Variable Options since the cap went into effect on March 17, 2011.

• On
 March 18, 2011 (and at least until first a transfer is made out of the AST bond Portfolio Variable Option under the formula) – the $10,000 payment is
 allocated to the Permitted Variable Options and on this date you have 82% in the AST bond Portfolio Variable Option and
 18% in the Permitted Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 to the AST bond Portfolio
 Variable Option).

• Once
 there is a transfer out of the AST bond Portfolio Variable Option (of any amount), the formula will operate as described above, meaning
 that the formula could transfer amounts to or from the AST bond Portfolio Variable Option if dictated by the formula (subject to the
 90% cap).

Under the operation of the formula, the 90% cap may come into and out of effect multiple times while you participate in the benefit. We will continue to monitor your Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST bond Portfolio Variable Option as dictated by the formula.

As discussed above, each Valuation Day, the formula analyzes the difference between your Unadjusted Account Value and your guarantees, as well as how long you have owned the benefit, and determines if any portion of your Unadjusted Account Value needs to be transferred into or out of the AST bond Portfolio Variable Options. Therefore, at any given time, some, none, or most of your Unadjusted Account Value may be allocated to the AST bond Portfolio Variable Options.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Unadjusted Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the AST bond Portfolio Variable Options pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Unadjusted Account Value and your guarantee amount(s);

• The
 amount of time until the maturity of your guarantee(s);

• The
 amount invested in, and the performance of, the Permitted Variable Options;

• The
 amount invested in, and the performance of, the AST bond Portfolio Variable Options;

• The
 discount rate used to determine the present value of your guarantee(s);

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

Any amounts invested in the AST bond Portfolio Variable Options will affect your ability to participate in a subsequent market recovery within the Permitted Variable Options. Conversely, the Unadjusted Account Value may be higher at the beginning of the market recovery, e.g. more of the Unadjusted Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected. The AST bond Portfolio Variable Options are available only with certain optional living benefits, and you may not allocate Purchase Payments to or transfer Account Value to or from the AST bond Portfolio Variable Options.

Transfers under the formula do not impact any guarantees under the benefit that have already been locked-in.

**Election/Cancellation of the Benefit**

GRO Plus II is available only for Annuities issued with an application signed prior to January 24, 2011, subject to availability which may vary by firm. GRO Plus II can be elected on any Valuation Day as long as the benefit is available, provided that your Unadjusted Account Value is allocated in a manner permitted with the benefit and that you otherwise meet our eligibility rules. You may elect GRO Plus II only if the oldest of the Owner and Annuitant is 84 or younger on the date of election. GRO Plus II is not available if you participate in any other optional living benefit. However, GRO Plus II may be elected together with any optional death benefit.

**GRO Plus II will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned contract), unless the Annuity is** **continued by the surviving spouse; (b) as of the date Unadjusted Account Value is applied to begin annuity payments; (c) as of the** **anniversary of benefit election that immediately precedes the contractually-mandated latest Annuity Date, or (d) upon full surrender of the** **Annuity. If you elect to terminate the benefit, GRO Plus II will no longer provide any guarantees. The charge for the GRO Plus II benefit will no** **longer be deducted from your Unadjusted Account Value upon termination of the benefit.**

------

[Back to **Table of Contents**](#TOC_956)

If you elect this benefit, you may be required to reallocate to different Variable Options if you are currently invested in non-permitted Variable Options. On the Valuation Day we receive your request in Good Order, we will (i) sell Units of the non-permitted Investment Options and (ii) invest the proceeds of those sales in the permitted Investment Options that you have designated. During this reallocation process, your Unadjusted Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The protection afforded by the newly-elected benefit will not arise until the close of business on the following Valuation Day.

If you wish, you may cancel the GRO Plus II benefit. You may also cancel an enhanced guarantee, but leave the base guarantee intact. Upon cancellation, you may elect any other currently available living benefit on any Valuation Day after you have cancelled the GRO Plus II benefit, provided that your Unadjusted Account Value is allocated in a manner permitted with that new benefit and that you otherwise meet our eligibility rules. Upon cancellation of the GRO Plus II benefit, any Unadjusted Account Value allocated to the AST bond Portfolio Variable Option used with the formula will be reallocated to the Permitted Variable Options according to your most recent allocation instructions or, in absence of such instructions, on a proportional basis (i.e., in direct proportion to your current allocations). Upon your re-election of GRO Plus II, Unadjusted Account Value may be transferred between the AST bond Portfolio Variable Options and the Permitted Variable Options according to the predetermined mathematical formula (see "Key Feature – Allocation of Unadjusted Account Value" above for more details). You also should be aware that upon cancellation of the GRO Plus II benefit, you will lose all guarantees that you had accumulated under the benefit. Thus, the guarantees under any newly-elected benefit will be based on your current Unadjusted Account Value at benefit effectiveness. The benefit you elect or re-elect may be more expensive than the benefit you cancel. Once the GRO Plus II benefit is canceled you are not required to re-elect another optional living benefit and any subsequent benefit election may be made on or after the first Valuation Day following the cancellation of the GRO Plus II benefit provided that the benefit you are looking to elect is available at that time and on a post-issue basis.

**Special Considerations Under GRO Plus II**

This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Unadjusted Account Value must be allocated to the Permitted Variable Options. The Permitted Variable
 Options are those described in the Investment Option section of this prospectus. No Market Value Adjustment Options may be in effect
 as of the date that you elect to participate in the benefit, nor may you add such allocations after you have acquired the benefit.

• Transfers
 as dictated by the formula will not count toward the maximum number of free transfers allowable under the Annuity.

• Any
 amounts applied to your Unadjusted Account Value by us on a Maturity Date will not be treated as "investment in the contract"
 for income tax purposes.

• Only
 systematic withdrawal programs in which amounts withdrawn are being taken on a proportional basis from your Annuity's Variable Options
 (i.e., in direct proportion to the proportion that each such Variable Option bears to your total Unadjusted Account Value) will be permitted
 if you participate in GRO Plus II. Thus, you may not elect GRO Plus II so long as you participate in a systematic withdrawal program
 in which withdrawals are not taken on a proportional basis. Similarly, if you currently participate in GRO Plus II, we will allow you to add a systematic
 withdrawal program only if withdrawals under the program are to be taken on a proportional basis.

• As
 the time remaining until the applicable Maturity Date(s) gradually decreases, the benefit may become increasingly sensitive to moves to
 an AST bond Portfolio Variable Option.

**Charges under the Benefit**

We deduct an annualized maximum charge equal to 0.60% of the daily net assets of the Variable Options (including any AST bond Portfolio Variable Option) for participation in the GRO Plus II benefit. The annualized charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on a Maturity Date is less than the amount guaranteed and (b) administration of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

***HIGHEST DAILY GUARANTEED RETURN OPTION II (HD GRO II)***

HD GRO II is available only for Annuities issued with an application signed prior to January 24, 2011, subject to availability which may vary by firm. Highest Daily Guaranteed Return Option II (HD GRO II) is a form of "guaranteed minimum accumulation benefit" that guarantees a specified Account Value at one or more dates in the future. If you participate in this benefit, you are subject to a predetermined mathematical formula that transfers Account Value between your Variable Options and an AST bond Portfolio Variable Option.

HD GRO II creates a series of separate guarantees, each of which is based on the highest Unadjusted Account Value attained on a day during the applicable time period. As each year of your participation in the benefit passes, we create a new guarantee. Each guarantee then remains in existence until the date on which it matures (unless the benefit terminates sooner). We refer to each date on which the specified Unadjusted Account Value is guaranteed as the "Maturity Date" for that guarantee. HD GRO II will not create a guarantee if the Maturity Date of that guarantee would extend beyond the Latest Annuity Date. This is true even with respect to a new Owner who has acquired the Annuity from the original Owner.

The guarantees provided by the benefit exist only on the applicable Maturity Date(s). However, due to the ongoing monitoring of your Unadjusted Account Value, and the transfer of Unadjusted Account Value to support your future guarantees, the benefit may provide some protection from significant Variable Option losses. For this same reason, the benefit may limit your ability to benefit from Variable Option increases while it is in effect.

------

[Back to **Table of Contents**](#TOC_956)

The initial guarantee is created on the day that the HD GRO II benefit is added to your Annuity. We guarantee that your Unadjusted Account Value on the tenth anniversary of that day (we refer to each such anniversary as a "benefit anniversary") will not be less than your Unadjusted Account Value (adjusted for purchase payments and withdrawals as described below) on the day that the HD GRO II benefit was added or re-added to your Annuity. Each benefit anniversary thereafter, we create a new guarantee. With respect to each such subsequent guarantee, we identify the highest Unadjusted Account Value that occurred between the date of that benefit anniversary and the date on which HD GRO II was added to your Annuity.

We guarantee that your Unadjusted Account Value ten years after that benefit anniversary will be no less than the highest daily Unadjusted Account Value (adjusted for Purchase Payments and withdrawals, as described below) that occurred during that time period. The following example illustrates the time period over which we identify the highest daily Unadjusted Account Value for purposes of each subsequent guarantee under the benefit. If the date of benefit election were January 6, 2011, we would create a guarantee on January 6 of each subsequent year. For example, we would create a guarantee on January 6, 2015 based on the highest Unadjusted Account Value occurring between January 6, 2011 and January 6, 2015, and that guarantee would mature on January 6, 2025. As described below, we adjust each of the guarantee amounts for Purchase Payments (and any associated Purchase Credits) and withdrawals.

If the Unadjusted Account Value on the Maturity Date is less than the guaranteed amount, we will contribute funds from our general account to bring your Unadjusted Account Value up to the guaranteed amount. If the Maturity Date is not a Valuation Day, then we would contribute such an amount on the next Valuation Day. We will allocate any such amount to each Variable Option (other than the AST bond Portfolio Variable Option used with this benefit and described below) in accordance with your most recent allocations instructions. Regardless of whether we need to contribute funds at the end of a Guarantee Period, we will at that time transfer all amounts held within the AST bond Portfolio Variable Option associated with the maturing guarantee to your other Variable Options on a proportional basis, unless your Account Value is either (1) being allocated according to an asset allocation program or (2) at that time allocated entirely to an AST bond Portfolio Variable Option. If the former (i.e., an asset allocation program), your Unadjusted Account Value will be transferred according to the program. If the latter (i.e., an AST bond Portfolio Variable Option), then your Unadjusted Account Value will be transferred to the Variable Options permitted with this benefit according to your most recent allocation instructions. Any addition or transferred amount may subsequently be re-allocated based on the predetermined mathematical formula described below.

We increase the amount of each guarantee that has not yet reached its Maturity Date, as well as the highest daily Unadjusted Account Value that we calculate to establish a guarantee, by the amount of each subsequent Purchase Payment (including any associated Purchase Credits) made prior to the applicable Maturity Date. For example, if the effective date of the benefit was January 4, 2011, and there was an initial guaranteed amount that was set at $100,000 maturing January 4, 2021, and a second guaranteed amount that was set at $120,000 maturing January 4, 2022, then a $30,000 Purchase Payment made on March 30, 2012 would increase the guaranteed amounts to $130,000 and $150,000, respectively.

If you make a withdrawal (including any CDSC), we effect a proportional reduction to each existing guarantee amount. We calculate a proportional reduction by reducing each existing guarantee amount by the percentage represented by the ratio of the withdrawal amount (including any CDSC) to your Unadjusted Account Value immediately prior to the withdrawal.

If you make a withdrawal, we will deduct the withdrawal amount on a proportional basis from each of your Variable Options (including the AST bond Portfolio Variable Option used with this benefit).

**EXAMPLE**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of a withdrawal on each guarantee amount under this benefit.

Assume the following:

• The
 Issue Date is December 1, 2010

• The
 benefit is elected on December 1, 2010

• The
 Unadjusted Account Value on December 1, 2010 is $200,000, which results in an initial guarantee of $200,000

• An
 additional guarantee amount of $350,000 is locked in on December 1, 2011

• The
 Unadjusted Account Value immediately prior to the withdrawal is equal to $380,000

• for
 purposes of simplifying these assumptions, we assume hypothetically that no CDSC is applicable (in general, a CDSC could be <br> inapplicable
 based on the Free Withdrawal provision if the withdrawal was within the CDSC period, and would be inapplicable to the C <br> Series)

If a withdrawal of $50,000 is taken on December 15, 2011, all guarantee amounts will be reduced by the ratio of the total withdrawal amount to the Unadjusted Account Value just prior to the withdrawal being taken.

------

[Back to **Table of Contents**](#TOC_956)

**Here is the calculation (figures are rounded):**

---

| | |
|:---|:---|
|  Withdrawal Amount | $50000 |
|  Divided by Unadjusted Account Value before withdrawal | $380000 |
|  Equals ratio | 13.16% |
|  All guarantees will be reduced by the above ratio (13.16%) |  |
|  Initial guarantee amount | $173680 |
|  Additional guarantee amount | $303940 |

---

**Key Feature – Allocation of Unadjusted Account Value**

We limit the Variable Options to which you may allocate Unadjusted Account Value if you elect HD GRO II. For purposes of this benefit, we refer to those permitted Investment Options (other than the AST bond Portfolio used with this benefit) as the "Permitted Variable Options".

HD GRO II uses a predetermined mathematical formula to help manage your guarantees through all market cycles. The formula applicable to you may not be altered once you elect the benefit. However, subject to regulatory approval, we do reserve the right to amend the formula for newly issued Annuities that elect or re-elect the benefit and for existing Annuities that elect the benefit post-issue. This required formula helps us manage our financial exposure under HD GRO II, by moving assets out of certain Variable Options if dictated by the formula (see below). In essence, we seek to preserve Unadjusted Account Value, by transferring it to a more stable option (i.e., one or more specified bond Portfolios of Advanced Series Trust). We refer to the Variable Options corresponding to these bond Portfolios collectively as the "AST bond Portfolio Variable Options". The formula also contemplates the transfer of Unadjusted Account Value from an AST bond Portfolio Variable Option to the other Variable Options. Because these restrictions and the use of the formula lessen the likelihood that your Unadjusted Account Value will be reduced below the base and/or enhanced guarantee(s), they also reduce the likelihood that we will make any payments under this benefit. They may also limit your upside potential for growth. **The formula is set forth in** [**<u>Appendix</u>** **<u>I</u>**](#chapter_26-sect1_1_956) **of this prospectus. A summary description of each AST bond Portfolio Variable Option appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956). In addition, you can find a copy of the AST bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>.

For purposes of operating the HD GRO II formula, we have included within each Annuity several AST bond Portfolio Variable Options. Each AST bond Portfolio is unique, in that its underlying investments generally mature at different times. For example, there would be an AST bond Portfolio whose underlying investments generally mature in 2021, an AST bond Portfolio whose underlying investments generally mature in 2022, and so forth. As discussed below, the formula determines the appropriate AST bond Portfolio Variable Option to which Unadjusted Account Value is transferred. We will introduce new AST bond Portfolio Variable Options in subsequent years, to correspond generally to the length of new Guarantee Periods that are created under this benefit. If you have elected HD GRO II, you may have Unadjusted Account Value allocated to an AST bond Portfolio Variable Option only by operation of the formula, and thus you may not allocate Purchase Payments to or make transfers to or from an AST bond Portfolio Variable Option.

Although we employ several AST bond Portfolio Variable Options for purposes of the benefit, the formula described in the next paragraph operates so that your Unadjusted Account Value may be allocated to only one AST bond Portfolio Variable Option at one time. The formula determines the appropriate AST bond Portfolio Variable Option to which Unadjusted Account Value is transferred. On any day a transfer into or out of the AST bond Portfolio Variable Option is made the formula may dictate that a transfer out of one AST bond Portfolio Variable Option be made into another AST bond Portfolio Variable Option. Any transfer into an AST bond Portfolio Variable Option will be directed to the AST bond Portfolio Variable Option associated with the "current liability", as described below. As indicated, the formula and AST bond Portfolio Variable Options are employed with this benefit to help us mitigate the financial risks under our guarantee. Thus, the applicable formula under the benefit determines which AST bond Portfolio Variable Option your Unadjusted Account Value is transferred to, and under what circumstances a transfer is made.

In general, the formula works as follows. Under the formula, Unadjusted Account Value will transfer between the "Permitted Variable Options" and an AST bond Portfolio Variable Option when dictated by the predetermined mathematical formula. On each Valuation Day, including the effective date of the benefit, the predetermined mathematical formula is used to compare your Unadjusted Account Value to an amount based on the guarantees provided under the benefit. The formula determines whether a transfer occurs based, among other things, on an identification of the outstanding guarantee that has the largest present value. Based on the formula, a determination is made as to whether any portion of your Unadjusted Account Value is to be transferred to or from the AST bond Portfolio Variable Option. In identifying those guarantees, we consider each guarantee that already has been set (i.e., on a benefit anniversary), as well as an amount that we refer to as the "Projected Future Guarantee." The "Projected Future Guarantee" is an amount equal to the highest Unadjusted Account Value (adjusted for withdrawals, additional Purchase Payments, and any associated Credits as described in the section of the prospectus concerning HD GRO II) within the current benefit year that would result in a new guarantee. For the Projected Future Guarantee, the assumed Guarantee Period begins on the current Valuation Day and ends 10 years from the next anniversary of the effective date of the benefit. As such, a Projected Future Guarantee could cause a transfer of Unadjusted Account Value into an AST bond Portfolio Variable Option. We only calculate a Projected Future Guarantee if the assumed Guarantee Period associated with that Projected Future Guarantee does not extend beyond the latest Annuity Date applicable to the Annuity. The amount that is transferred to and from the AST bond Portfolio Variable Options pursuant to the formula depends upon the factors set forth in the seven bullet points below, some of which relate to the guarantee amount(s), including the Projected Future Guarantee.

------

[Back to **Table of Contents**](#TOC_956)

For each outstanding guarantee and the Projected Future Guarantee, the formula begins by determining the present value on that Valuation Day that, if appreciated at the applicable "discount rate", would equal the applicable guarantee amount on the Maturity Date. As detailed in the formula, the discount rate is an interest rate determined by taking a benchmark index used within the financial services industry and then reducing that interest rate by a prescribed adjustment. Once selected, we do not change the applicable benchmark index (although we do reserve the right to use a new benchmark index if the original benchmark is discontinued). The greatest of each such present value is referred to as the "current liability" in the formula. The formula compares the current liability to the amount of your Unadjusted Account Value held within the AST bond Portfolio Variable Option and to your Unadjusted Account Value held within the Permitted Variable Options. If the current liability, reduced by the amount held within the AST bond Portfolio Variable Option, and divided by the amount held within the Permitted Variable Options, exceeds an upper target value (currently, 85%), then the formula will make a transfer into the AST bond Portfolio Variable Option, in the amount dictated by the formula (subject to the 90% cap rule discussed below). If the current liability, reduced by the amount held within the AST bond Portfolio Variable Option, and divided by the amount within the Permitted Variable Options, is less than a lower target value (currently, 79%), then the formula will transfer Unadjusted Account Value from the AST bond Portfolio Variable Option into the Permitted Variable Options, in the amount dictated by the formula.

The formula will not execute a transfer to the AST bond Portfolio Variable Option that results in more than 90% of your Unadjusted Account Value being allocated to the AST bond Portfolio Variable Option ("90% cap"). Thus, on any Valuation Day, if the formula would require a transfer to the AST bond Portfolio Variable Option that would result in more than 90% of the Unadjusted Account Value being allocated to the AST bond Portfolio Variable Option, only the amount that results in exactly 90% of the Unadjusted Account Value being allocated to the AST bond Portfolio Variable Option will be transferred. Additionally, future transfers into the AST bond Portfolio Variable Option will not be made (regardless of the performance of the AST bond Portfolio Variable Option and the Permitted Variable Options) at least until there is first a transfer out of the AST bond Portfolio Variable Option. Once this transfer occurs out of the AST bond Portfolio Variable Option, future amounts may be transferred to or from the AST bond Portfolio Variable Option if dictated by the formula (subject to the 90% cap rule). At no time will the formula make a transfer to the AST bond Portfolio Variable Option that results in greater than 90% of your Unadjusted Account Value being allocated to the AST bond Portfolio Variable Option. However, it is possible that, due to the investment performance of your allocations in the AST bond Portfolio Variable Option and your allocations in the Permitted Variable Options you have selected, your Unadjusted Account Value could be more than 90% invested in the AST bond Portfolio Variable Option. If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the AST bond Portfolio Variable Option at least until there is first a transfer out of the AST bond Portfolio Variable Option, regardless of how much of your Unadjusted Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Unadjusted Account Value is allocated to the AST bond Portfolio Variable Option, and the formula will still not transfer any of your Unadjusted Account Value to the AST bond Portfolio Variable Option (at least until there is first a transfer out of the AST bond Portfolio Variable Option).

For example,

• March
 17, 2011 – a transfer is made to the AST bond Portfolio Variable Option that results in the 90% cap being met and now $90,000 is allocated to the
 AST bond Portfolio Variable Option and $10,000 is allocated to the Permitted Variable Options.

• March
 18, 2011 – you make an additional Purchase Payment of $10,000. No transfers have been made from the AST bond Portfolio Variable
 Option to the Permitted Variable Options since the cap went into effect on March 17, 2011.

• On
 March 18, 2011 (and at least until first a transfer is made out of the AST bond Portfolio Variable Option under the formula) – the $10,000 payment is
 allocated to the Permitted Variable Options and on this date you have 82% in the AST bond Portfolio Variable Option and
 18% in the Permitted Variable Options (such that $20,000 is allocated to the Permitted Variable Options and $90,000 to the AST bond Portfolio
 Variable Option).

• Once
 there is a transfer out of the AST bond Portfolio Variable Option (of any amount), the formula will operate as described above, meaning
 that the formula could transfer amounts to or from the AST bond Portfolio Variable Option if dictated by the formula (subject to the
 90% cap rule).

Under the operation of the formula, the 90% cap may come into and out of effect multiple times while you participate in the benefit. We will continue to monitor your Unadjusted Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the AST bond Portfolio Variable Option as dictated by the formula.

As discussed above, each Valuation Day, the formula analyzes the difference between your Unadjusted Account Value and your guarantees as well as how long you have owned the benefit, and determines if any portion of your Unadjusted Account Value needs to be transferred into or out of the AST bond Portfolio Variable Options. Therefore, at any given time, some, none, or most of your Unadjusted Account Value may be allocated to the AST bond Portfolio Variable Options.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Unadjusted Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the AST bond Portfolio Variable Options pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Unadjusted Account Value and your guarantee amount(s);

• The
 amount of time until the maturity of your guarantee(s);

• The
 amount invested in, and the performance of, the Permitted Variable Options;

• The
 amount invested in, and the performance of, the AST bond Portfolio Variable Options;

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• The
 discount rate used to determine the present value of your guarantee(s);

• Additional
 Purchase Payments, if any, that you make to the Annuity; and

• Withdrawals,
 if any, taken from the Annuity.

Any amounts invested in the AST bond Portfolio Variable Options will affect your ability to participate in a subsequent market recovery within the Permitted Variable Options. Conversely, the Unadjusted Account Value may be higher at the beginning of the market recovery, e.g. more of the Unadjusted Account Value may have been protected from decline and volatility than it otherwise would have been had the benefit not been elected. The AST bond Portfolio Variable Options are available only with certain optional living benefits, and you may not allocate Purchase Payments to or transfer Unadjusted Account Value to or from the AST bond Portfolio Variable Options.

Transfers under the formula do not impact any guarantees under the benefit that have already been locked-in.

**Election/Cancellation of the Benefit**

HD GRO II is available only for Annuities issued with an application signed prior to January 24, 2011, subject to availability which may vary by firm. HD GRO II can be elected on any Valuation Day as long as the benefit is available, provided that your Unadjusted Account Value is allocated in a manner permitted with the benefit and you otherwise meet our eligibility requirements. You may elect HD GRO II only if the oldest of the Owner and Annuitant is 84 or younger on the date of election. If you currently participate in a living benefit that may be cancelled, you may terminate that benefit at any time and elect HD GRO II. However you will lose all guarantees that you had accumulated under the previous benefit. The initial guarantee under HD GRO II will be based on your current Unadjusted Account Value at the time the new benefit becomes effective on your Annuity. HD GRO II is not available if you participate in any other living benefit. However, HD GRO II may be elected together with any optional death benefit.

**HD GRO II will terminate automatically upon: (a) the death of the Owner or the Annuitant (in an entity owned Annuity), unless the Annuity is** **continued by the surviving spouse; (b) as of the date Unadjusted Account Value is applied to begin annuity payments; (c) as of the** **anniversary of benefit election that immediately precedes the contractually-mandated latest Annuity Date, or (d) upon full surrender of the** **Annuity. If you elect to terminate the benefit, HD GRO II will no longer provide any guarantees. The charge for the HD GRO II benefit will no** **longer be deducted from your Unadjusted Account Value upon termination of the benefit.**

If you elect this benefit, you may be required to reallocate to different Variable Options if you are currently invested in non-permitted Variable Options. On the Valuation Day we receive your request in Good Order, we will (i) sell Units of the non-permitted Investment Options and (ii) invest the proceeds of those sales in the permitted Investment Options that you have designated. During this reallocation process, your Unadjusted Account Value allocated to the Permitted Variable Options will remain exposed to investment risk, as is the case generally. The protection afforded by the newly-elected benefit will not arise until the close of business on the following Valuation Day.

If you wish, you may cancel the HD GRO II benefit. You may then elect any other currently available living benefit on any Valuation Day after you have cancelled the HD GRO II benefit, provided that your Unadjusted Account Value is allocated in the manner permitted with that new benefit and you otherwise meet our eligibility requirements. Upon cancellation of the HD GRO II benefit, any Unadjusted Account Value allocated to the AST bond Portfolio Variable Options used with the formula will be reallocated to the Permitted Variable Options according to your most recent allocation instructions or, in absence of such instructions, on a proportional basis (i.e., in direct proportion to your current allocations). Upon your re-election of HD GRO II, Unadjusted Account Value may be transferred between the AST bond Portfolio Variable Options and the other Variable Options according to the predetermined mathematical formula (see "Key Feature – Allocation of Unadjusted Account Value" section for more details). You also should be aware that upon cancellation of the HD GRO II benefit, you will lose all guarantees that you had accumulated under the benefit. Thus, the guarantees under your newly-elected benefit will be based on your current Unadjusted Account Value at the time the new benefit becomes effective. The benefit you elect or re-elect may be more expensive than the benefit you cancel.

**Special Considerations Under HD GRO II**

This benefit is subject to certain rules and restrictions, including, but not limited to the following:

• Upon
 inception of the benefit, 100% of your Unadjusted Account Value must be allocated to the Permitted Variable Options. The Permitted Variable
 Options are those described in the Investment Option section.

• Transfers
 as dictated by the formula will not count toward the maximum number of free transfers allowable under the Annuity.

• Any
 amounts applied to your Unadjusted Account Value by us on a Maturity Date will not be treated as "investment in the contract"
 for income tax purposes.

• As
 the time remaining until the applicable Maturity Date gradually decreases, the benefit may become increasingly sensitive to moves to an
 AST bond Portfolio Variable Option.

• Only
 systematic withdrawal programs in which amounts withdrawn are being taken on a proportional basis from your Annuity's Variable Options
 (i.e., in direct proportion to the proportion that each such Variable Option bears to your total Unadjusted Account Value) will be permitted
 if you participate in HD GRO II. Thus, you may not elect HD GRO II so long as you participate in a systematic withdrawal program
 in which withdrawals are not taken on a proportional basis. Similarly, if you currently participate in HD GRO II, we will allow you to add a systematic
 withdrawal program only if withdrawals under the program are to be taken on a proportional basis.

------

[Back to **Table of Contents**](#TOC_956)

**Charges under the Benefit**

We deduct an annualized maximum charge equal to 0.60% of the daily net assets of the Variable Options (including any AST Bond Portfolio) for participation in the HD GRO II benefit. The annualized charge is deducted daily. The charge is deducted to compensate us for: (a) the risk that your Account Value on the maturity date is less than the amount guaranteed and (b) administration of the benefit. You will begin paying this charge as of the effective date of the benefit. We will not refund the charges you have paid even if we never have to make any payments under the benefit.

**DEATH BENEFITS**

**TRIGGERS FOR PAYMENT OF THE DEATH BENEFIT**

Each Annuity provides a Death Benefit prior to Annuitization. If the Annuity is owned by one or more natural persons, the Death Benefit is payable upon the death of the Owner (or the first to die, if there are multiple Owners). If an Annuity is owned by an entity, the Death Benefit is payable upon the Annuitant's death if there is no Contingent Annuitant. Generally, if a Contingent Annuitant was designated before the Annuitant's death and the Annuitant dies, then the Contingent Annuitant becomes the Annuitant and a Death Benefit will not be paid upon the Annuitant's death. The person upon whose death the Death Benefit is paid is referred to below as the "decedent".

Where an Annuity is issued to a trust and such trust is characterized as a grantor trust under the Code, such Annuity shall not be considered to be held by a non-natural person and will be subject to the tax reporting and withholding requirements generally applicable to a Non-qualified Annuity held by a natural person. At this time, we will not issue an Annuity to grantor trusts with more than two grantors.

You may name as the Owner of the Annuity a grantor trust with one grantor only if the grantor is designated as the Annuitant. You may name as the Owner of the Annuity, subject to state availability, a grantor trust with two grantors only if the oldest grantor is designated as the Annuitant. We will not issue Annuities to grantor trusts with more than two grantors and we will not permit co-grantors to be designated as either joint Annuitants during the Accumulation Period or Contingent Annuitants.

Where the Annuity is owned by a grantor trust, the Annuity must be distributed within 5 years after the date of death of the first grantor's death under Section 72(s) of the Code. If a non-Annuitant grantor predeceases the Annuitant, the Surrender Value will be payable. The Surrender Value will be payable to the trust and there is no Death Benefit provided under the Annuity except as otherwise described below. Between the date of death of the non-Annuitant grantor and the date that we distribute the Surrender Value, the Account Value may be reduced by the total insurance charge and may be subject to Variable Option fluctuations. If the Annuitant dies after the death of the first grantor, but prior to the distribution of the Surrender Value of the Annuity, then the Death Benefit amount will be payable as a lump sum to the Beneficiary or Beneficiaries.

We determine the amount of the Death Benefit as of the date we receive "Due Proof of Death." Due Proof of Death can be met only if each of the following is submitted to us in Good Order: (a) a death certificate or similar documentation acceptable to us (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds and (c) any applicable election of the method of payment of the death benefit by at least one Beneficiary (if not previously elected by the Owner). We must be made aware of the entire universe of eligible Beneficiaries in order for us to have received Due Proof of Death. Any given Beneficiary must submit the written information we require in order to be paid his/her share of the Death Benefit.

Once we have received Due Proof of Death, each eligible Beneficiary may take his/her portion of the Death Benefit in one of the forms described in this prospectus (e.g., distribution of the entire interest in the Annuity within 5 years after the date of death, or as periodic payments over a period not extending beyond the life or life expectancy of the Beneficiary – see "[<u>Payment of Death Benefits</u>](#chapter_11-sect1_13_956)").

After our receipt of Due Proof of Death, we automatically transfer any remaining Death Benefit to the AST Government Money Market Variable Option. However, between the date of death and the date that we transfer any remaining Death Benefit to the AST Government Money Market Variable Option, ***the amount of the Death Benefit may be impacted by the insurance charge and may be subject to Variable Option fluctuations.***

No Death Benefit will be payable if the Annuity terminates because your Unadjusted Account Value reaches zero (which can happen if, for example, you are taking withdrawals under an optional living benefit).

**EXCEPTIONS TO AMOUNT OF DEATH BENEFIT**

There are certain exceptions to the amount of the Death Benefit.

**Submission of Due Proof of Death after One Year.** If we receive Due Proof of Death more than one year after the date of death, we reserve the right to limit the Death Benefit to the Unadjusted Account Value on the date we receive Due Proof of Death (i.e., we would not pay the minimum Death Benefit or any Death Benefit in connection with an optional living benefit).

**Death Benefit Suspension Period**. You also should be aware that there is a Death Benefit suspension period. If the decedent was not the Owner or Annuitant as of the Issue Date (or within 60 days thereafter), any Death Benefit (including the Minimum Death Benefit, any optional Death Benefit, Highest Daily Lifetime Income v2.1 with HD DB, Spousal Highest Daily Lifetime Income v2.1 with HD DB, Highest Daily Lifetime Income 2.0 with HD DB and Spousal Highest Daily Lifetime Income 2.0 with HD DB) that applies will be suspended for a two year period starting from the date that person first became Owner or Annuitant. This suspension would not apply if the ownership or Annuitant change was the result of Spousal Continuation or death of the prior Owner or Annuitant. While the two year suspension is in effect, any applicable charge will continue to apply but the Death Benefit amount will

------

[Back to **Table of Contents**](#TOC_956)

equal the Unadjusted Account Value, less any Purchase Credits granted during the period beginning 12 months prior to decedent's date of death and ending on the date we receive Due Proof of Death with respect to the X Series. Thus, if you had elected an Optional Death benefit, Highest Daily Lifetime Income v2.1 with HD DB, Spousal Highest Daily Lifetime Income v2.1 with HD DB, Highest Daily Lifetime Income 2.0 with HD DB or Spousal Highest Daily Lifetime Income 2.0 with HD DB, and the suspension were in effect, you would be paying the fee for the Optional Death Benefit, Highest Daily Lifetime Income v2.1 with HD DB, Spousal Highest Daily Lifetime Income v2.1 with HD DB, Highest Daily Lifetime Income 2.0 with HD DB or Spousal Highest Daily Lifetime Income 2.0 with HD DB even though during the suspension period your Death Benefit would be limited to the Unadjusted Account Value. After the two-year suspension period is completed the Death Benefit is the same as if the suspension period had not been in force. See "[<u>Change</u> <u>of Owner, Annuitant and Beneficiary Designations</u>](#chapter_9-sect1_2_956)" with regard to changes of Owner or Annuitant that are allowable.

**Beneficiary Annuity**. With respect to a Beneficiary Annuity, the Death Benefit is triggered by the death of the beneficial Owner (or the Key Life, if entity-owned). However, if the Annuity is held as a Beneficiary Annuity, the Owner is an entity, and the Key Life is already deceased, then no Death Benefit is payable upon the death of the beneficial Owner.

**BASIC DEATH BENEFIT**

Each Annuity provides a Basic Death Benefit at no additional charge. The amount of the Basic Death Benefit is equal to the greater of:

• The
 sum of all Purchase Payments you have made since the Issue Date of the Annuity (excluding any Purchase Credits) until the date of Due
 Proof of Death, reduced proportionally by the ratio of the amount of any withdrawal to the Account Value immediately prior to the withdrawal;
 AND

• Your
 Unadjusted Account Value (less the amount of any Purchase Credits applied during the period beginning 12-months prior to the decedent's
 date of death, and ending on the date we receive Due Proof of Death with respect to the X Series).

**<u>Here is an example of how the basic death benefit is calculated</u>**: The contract was issued with Purchase Payments totaling $100,000 but, due to negative Variable Option performance, the Account Value had decreased to $80,000. If the Owner died, the death benefit would still be $100,000. This amount, however, is reduced proportionally when you make a withdrawal from the contract. If the contract Owner had withdrawn 50% of the remaining $80,000, the death benefit would also be reduced by 50%. Since the death benefit had been $100,000, it would now be $50,000.

**SPOUSAL CONTINUATION OF ANNUITY**

Unless you designate a Beneficiary other than your spouse, upon the death of either spousal Owner, the surviving spouse may elect to continue ownership of the Annuity instead of taking the Death Benefit payment. The Unadjusted Account Value as of the date of Due Proof of Death will be equal to the Death Benefit that would have been payable. Any amount added to the Unadjusted Account Value will be allocated to the Variable Options (if you participate in an optional living benefit, such amount will not be directly added to the AST Investment Bond Portfolio used by the benefit, but may be reallocated by the predetermined mathematical formula on the same day). No CDSC will apply to Purchase Payments made prior to the effective date of a spousal continuance. However, any additional Purchase Payments applied after the date the continuance is effective will be subject to all provisions of the Annuity, including the CDSC when applicable.

Subsequent to spousal continuation, the basic Death Benefit will be equal to the greater of:

• The
 Unadjusted Account Value on the effective date of the spousal continuance, plus all Purchase Payments you have made since the spousal
 continuance (excluding any Purchase Credits) until the date of Due Proof of Death, reduced proportionally by the ratio of the amount
 of any withdrawal to the Account Value immediately prior to the withdrawal; and

• The
 Unadjusted Account Value on Due Proof of Death of the surviving spouse (less the amount of any Purchase Credits applied during the
 period beginning 12-months prior to the decedent's date of death, and ending on the date we receive Due Proof of Death with respect to the X Series).

With respect to Highest Daily Lifetime Income v2.1 with HD DB, Highest Daily Lifetime Income 2.0 with HD DB, Spousal Highest Daily Lifetime Income v2.1 with HD DB and Spousal Highest Daily Lifetime Income 2.0 with HD DB:

• If the Highest Daily Death Benefit is not payable upon the death of a Spousal Designated Life, and the Remaining Designated Life chooses to continue
 the Annuity, the benefit will remain in force unless we are instructed otherwise.

• If
 a Death Benefit is not payable upon the death of a Spousal Designated Life (e.g., if the first of the Spousal Designated Lives to die
 is the Beneficiary
 but not an Owner), the benefit will remain in force unless we are instructed otherwise.

Spousal continuation is also permitted, subject to our rules and regulatory approval, if the Annuity is held by a Custodial Account established to hold retirement assets for the benefit of the natural person Annuitant pursuant to the provisions of Section 408(a) of the Code ("Custodial Account") and, on the date of the Annuitant's death, the spouse of the Annuitant is (1) the Contingent Annuitant under the Annuity and (2) the Beneficiary of the Custodial Account. The ability to continue the Annuity in this manner will result in the Annuity no longer qualifying for tax deferral under the Code. However, such tax deferral should result from the ownership of the Annuity by the Custodial Account. Please consult your tax or legal advisor.

Any Optional Death Benefit in effect at the time the first of the spouses dies will continue only if spousal assumption occurs prior to the Death Benefit Target Date and prior to the assuming spouse's 80<sup>th</sup> birthday. If spousal assumption occurs after the Death Benefit Target Date (or the 80<sup>th</sup> birthday of the assuming spouse), then any Optional Death Benefit will terminate as of the date of spousal assumption. In that event, the assuming spouse's Death Benefit will equal the basic Death Benefit.

------

[Back to **Table of Contents**](#TOC_956)

We allow a spouse to continue the Annuity even though he/she has reached or surpassed the Latest Annuity Date. However, upon such a spousal continuance, annuity payments would begin immediately.

**PAYMENT OF DEATH BENEFITS**

**Alternative Death Benefit Payment Options – Annuities Owned By Individuals (Not Associated With Tax-Favored Plans)**

Except in the case of a Spousal Continuation as described above, upon your death, certain distributions must be made under the Non-qualified Annuity. The required distributions depend on whether you die before you start taking annuity payments under the Annuity or after you start taking annuity payments under the Annuity. If you die on or after the Annuity Date, the remaining portion of the interest in the Annuity must be distributed at least as rapidly as under the method of distribution being used as of the date of death. In the event of the decedent's death before the Annuity Date, the Death Benefit must be distributed:

• within
 five (5) years of the date of death (the "five-year deadline"); or

• as
 a series of payments not extending beyond the life expectancy of the Beneficiary or over the life of the Beneficiary. Payments under this
 option must begin within one year of the date of death. If the Beneficiary does not begin installments by such time, then no partial withdrawals
 will be permitted thereafter and we require that the Beneficiary take the Death Benefit as a lump sum within the five-year deadline.
 If we do not receive instructions on where to send the payment within five-years of the date of death, the funds will be escheated.

If the Annuity is held as a Beneficiary Annuity, the payment of the Death Benefit must be distributed:

• as
 a lump sum payment; or

• as
 a series of required distributions under the Beneficiary Continuation Option as described below in the section entitled " [<u>Beneficiary</u> <u>Continuation Option</u>](#chapter_11-sect1_14_956) ",
 unless you have made an election prior to Death Benefit proceeds becoming due.

**Alternative Death Benefit Payment Options - Annuities Held by Tax-Favored Plans**

Upon your death under an IRA or Roth IRA, any remaining interest must be distributed in accordance with federal income tax requirements. The post-death distribution requirements were amended, applicable generally with respect to deaths occurring after 2019, by the Further Consolidated Appropriations Act of 2020 (which includes the "Setting Every Community Up for Retirement Enhancement" Act (SECURE Act)), and further clarified by the associated final and proposed regulations. We reserve our rights to implement any additional regulations addressing these requirements in the future. The post-death distribution requirements under prior law continue to apply in certain circumstances. The following rules generally apply to deaths after 2019:

• 10-year
 rule: If you have a designated Beneficiary, any remaining interest must be distributed within 10 years after your death, unless the designated
 Beneficiary is an "eligible designated Beneficiary" ("EDB") or some other exception applies.

• Eligible
 designated beneficiaries: A designated Beneficiary is any individual designated as a Beneficiary by the IRA owner. An EDB is any designated
 Beneficiary who is (1) your surviving spouse, (2) your minor child, (3) disabled, (4) chronically ill, or (5) an individual not more than
 10 years younger than you. An individual's status as an EDB is generally determined on the date of your death.

• Other
 applicable rules: This 10-year post-death distribution period applies regardless of whether you die before your required beginning date,
 or you die on or after that date (including after distributions have commenced in the form of an annuity). However, if you die on or after
 the required beginning date, then annual distributions will be required from the Annuity during the 10-year period. If the Beneficiary
 is an EDB and the
 EDB dies before the entire interest is distributed under this 10-year rule, the remaining interest must be distributed within 10
 years after the EDB's death (i.e., a new 10-year distribution period begins).

Instead of taking distributions under the 10-year rule, an EDB can stretch distributions over life, or over a period not extending beyond life expectancy, provided that such distributions commence within one year of your death, subject to certain special rules. In addition, if your minor child is an EDB, the child will cease to be an EDB on the date the child reaches the age of 21, and any remaining interest must be distributed within 10 years after that date (regardless of whether the remaining distribution period under the stretch rule was more or less than 10 years).

It is important to note that under prior law, annuity payments that commenced under a method that satisfied the distribution requirements while the IRA Owner was alive could continue to be made under that method after the death of the IRA owner. However, under the current law, if you commence taking distributions in the form of an annuity that can continue after your death, such as in the form of a joint and survivor annuity or an annuity with a guaranteed period of more than 10 years, any distributions after your death that are scheduled to be made beyond the applicable distribution period imposed under the current law might need to be commuted at the end of that period (or otherwise modified after your death if permitted under federal tax law and by Prudential) in order to comply with the post-death distribution requirements.

The post-death distribution requirements do not apply if annuity payments that comply with prior law commenced prior to December 20, 2019. Also, even if annuity payments have not commenced prior to December 20, 2019, the requirements generally do not apply to an immediate annuity contract purchased prior to that date, if you have made an irrevocable election before that date as to the method and amount of the annuity.

------

[Back to **Table of Contents**](#TOC_956)

If your Beneficiary is not an individual, such as a charity, your estate, or a trust, any remaining interest after your death generally must be distributed under prior law in accordance with the 5-year rule or the at-least-as-rapidly rule, as applicable (but not the lifetime payout rule). You may wish to consult a professional tax advisor about the federal income tax consequences of your Beneficiary designations.

In addition, the current post-death distribution requirements generally do not apply if the IRA Owner died prior to January 1, 2020. However, if the designated Beneficiary of the deceased IRA Owner dies after January 1, 2020, any remaining interest must be distributed within 10 years of the designated Beneficiary's death. Hence, this 10-year rule will apply to (1) a contract issued prior to 2020 which continues to be held by a designated Beneficiary of an IRA Owner who died prior to 2020, and (2) an inherited IRA issued after 2019 to the designated Beneficiary of an IRA Owner who died prior to 2020.

• Spousal
 continuation. Under the current law, as under prior law, if your Beneficiary is your spouse, such surviving spouse can delay the application
 of the post-death distribution requirements until after their death by transferring the remaining interest tax-free to their own IRA,
 or by treating your IRA as their own IRA subject to specific limits under the regulations. The post-death distribution requirements are complex in numerous
 respects. In addition, the manner in which these requirements will apply will depend on your particular facts and circumstances.
 You may wish to consult a professional tax adviser for tax advice as to your particular situation. For more information, see " [<u>Taxes</u>](#chapter_14-sect1_1_956) ."
 You may wish to consult a professional tax advisor about the federal income tax consequences of your Beneficiary designations.

For more information, see "[<u>Taxes</u>](#chapter_14-sect1_1_956)." You may wish to consult a professional tax advisor about the federal income tax consequences of your Beneficiary designations.

Designated Beneficiaries may be eligible for the IRA Beneficiary Continuation Option; however, distribution periods may be limited by applicable tax law as stated above. Beneficiaries should consult a professional tax advisor about the federal income tax consequences of distribution options.

Until withdrawn, amounts in an IRA, 403(b) or other "qualified investment" continue to be tax deferred. Amounts withdrawn each year, including amounts that are required to be withdrawn under the Required Minimum Distribution rules, are subject to tax. You may wish to consult a professional tax advisor for tax advice as to your particular situation.

For a Roth IRA, if death occurs before the entire interest is distributed, the Death Benefit must be distributed under the same rules applied to IRAs where death occurs before the date Required Minimum Distributions must begin under the Code.

If we do not receive instructions on where to send the payment within 5 years of the date of death, the funds will be escheated.

The tax consequences to the Beneficiary may vary among the different Death Benefit payment options. See the "[<u>Taxes</u>](#chapter_14-sect1_1_956)" and consult your tax advisor.

**BENEFICIARY CONTINUATION OPTION**

Instead of receiving the Death Benefit in a single payment, or under an Annuity Option, a Beneficiary may take the Death Benefit under an alternative Death Benefit payment option, as provided by the Code and described under the sections entitled "[<u>Payment of Death Benefits</u>](#chapter_11-sect1_13_956)" and "Alternative Death Benefit Payment Options – Annuities Held by Tax-Favored Plans". This "Beneficiary Continuation Option" is described below and is available for both qualified Annuities (i.e. annuities sold to an IRA, Roth IRA, SEP IRA, or 403(b)), Beneficiary Annuities and non-qualified Annuities. This option is different from the "Beneficiary Annuity", because the Beneficiary Continuation Option is a death benefit payout option used explicitly for annuities issued by a Prudential affiliate.

**Under the Beneficiary Continuation Option:**

• The
 Beneficiary must apply at least $15,000 to the Beneficiary Continuation Option (thus, the Death Benefit amount payable to each Beneficiary
 must be at least $15,000).

• The
 Annuity will be continued in the Owner's name, for the benefit of the Beneficiary.

• Beginning
 on the date we receive an election by the Beneficiary to take the Death Benefit in a form other than a lump sum, the Beneficiary will
 incur a Settlement Service Charge which is an annual charge assessed on a daily basis against the assets allocated to the Variable Options.
 The charge is 1.00% per year.

• Beginning
 on the date we receive an election by the Beneficiary to take the Death Benefit in a form other than a lump sum, the Beneficiary will
 incur an Annual Maintenance Fee equal to the lesser of $30 or 2% of Unadjusted Account Value. The fee will only apply if the Unadjusted
 Account Value is less than $25,000 at the time the fee is assessed. The fee will not apply if it is assessed 30 days prior to a surrender
 request.

• The
 initial Account Value will be equal to any Death Benefit (including any optional Death Benefit in connection with an optional living benefit)
 that would have been payable to the Beneficiary if the Beneficiary had taken a lump sum distribution.

• The
 available Variable Options will be among those available to the Owner at the time of death, however certain Variable Options may not be
 available.

• The
 Beneficiary may request transfers among Variable Options, subject to the same limitations and restrictions that applied to the Owner. Transfers in excess
 of 20 per year will incur a $10 transfer fee.

• No
 Market Value Adjustment Options will be offered for Beneficiary Continuation Options.

• No
 additional Purchase Payments can be applied to the Annuity. Multiple death benefits cannot be combined in a single Beneficiary Continuation
 Option.

• The
 basic Death Benefit and any optional benefits elected by the Owner will no longer apply to the Beneficiary.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• The
 Beneficiary can request a withdrawal of all or a portion of the Account Value at any time, unless the Beneficiary Continuation Option was the payout predetermined
 by the Owner and the Owner restricted the Beneficiary's withdrawal rights.

• Withdrawals
 are not subject to CDSC.

• Upon
 the death of the Beneficiary, any remaining Account Value will be paid in a lump sum to the person(s) named by the Beneficiary (successor),
 unless the successor chooses to continue receiving payments through a Beneficiary Continuation Option established for the successor.
 However, the distributions will continue to be based on the Key Life of the Beneficiary Continuation Option the successor received
 the death benefit proceeds from.

• If
 the Beneficiary elects to receive the death benefit proceeds under the Beneficiary Continuation Option, we must receive the election in Good Order at least
 14 days prior to the first required distribution. If, for any reason, the election impedes our ability to complete the first distribution
 by the required date, we will be unable to accept the election.

We may pay compensation to the broker-dealer of record on the Annuity based on amounts held in the Beneficiary Continuation Option. Please contact us for additional information on the availability, restrictions and limitations that will apply to a Beneficiary under the Beneficiary Continuation Option. Payment under this option may be limited based on federal income tax requirements. See the "[<u>Taxes</u>](#chapter_14-sect1_1_956)" section for more information on the limitations that may apply to this option.

------

[Back to **Table of Contents**](#TOC_956)

**PURCHASES AND CONTRACT VALUE**

------

**The Annuities referenced in this prospectus are no longer available for new sales or re-elections.**

**REQUIREMENTS FOR PURCHASING THE ANNUITY**

**We may apply certain limitations, restrictions, and/or underwriting standards as a condition of our issuance of an Annuity and/or acceptance** **of Purchase Payments. Certain of the current limitations, restrictions and standards are described below. We may change these limitations,** **restrictions and standards in the future.** 

**Initial Purchase Payment:** We no longer allow new purchases of this Annuity. An initial Purchase Payment is considered the first Purchase Payment received by us in Good Order and in an amount sufficient to issue your Annuity. This is the payment that issues your Annuity. All subsequent Purchase Payments allocated to the Annuity will be considered additional Purchase Payments. Unless we agree otherwise and subject to our rules, you must make a minimum initial Purchase Payment as follows: $1,000 for the B Series and $10,000 for the X Series, L Series, and C Series. However, if you decide to make payments under a systematic investment or an electronic funds transfer program, we may accept a lower initial Purchase Payment provided that, within the first Annuity Year, your subsequent Purchase Payments plus your initial Purchase Payment total the minimum initial Purchase Payment amount required for the Annuity purchased.

We must approve any initial and additional Purchase Payments where the total amount of Purchase Payments equals $1,000,000 or more with respect to this Annuity and any other annuities you are purchasing from us (or that you already own) and/or our affiliates. To the extent allowed by state law, that required approval also will apply to a proposed change of Owner of the Annuity, if as a result of the ownership change, total Purchase Payments with respect to this Annuity and all other annuities owned by the new Owner would equal or exceed that $1 million threshold. We may limit additional Purchase Payments under other circumstances, as explained in "Additional Purchase Payments," below.

Applicable laws designed to counter terrorists and prevent money laundering might, in certain circumstances, require us to block an Annuity Owner's ability to make certain transactions, and thereby refuse to accept Purchase Payments or requests for transfers, partial withdrawals, total withdrawals, death benefits, or income payments until instructions are received from the appropriate regulator. We also may be required to provide additional information about you and your Annuity to government regulators.

Except as noted below, Purchase Payments must be submitted by check drawn on a U.S. bank, in U.S. dollars, and made payable to Pruco Life. Purchase Payments may also be submitted via 1035 exchange or direct transfer of funds. Under certain circumstances, Purchase Payments may be transmitted to Pruco Life by wiring funds through your financial professional's broker-dealer firm. Additional Purchase Payments may also be applied to your Annuity under an electronic funds transfer, an arrangement where you authorize us to deduct money directly from your bank account. We may reject any payment if it is received in an unacceptable form. Our acceptance of a check is subject to our ability to collect funds.

Once we accept your application, we invest your Purchase Payment in your Annuity according to your instructions. You can allocate Purchase Payments to one or more available Investment Options. Investment restrictions will apply if you elect an optional benefit.

**Speculative Investing**: Do not purchase this Annuity if you, anyone acting on your behalf, and/or anyone providing advice to you plan to use it, or any of its riders, for speculation, arbitrage, viatication or any other type of collective investment scheme now or at any time prior to termination of the Annuity. Your Annuity may not be traded on any stock exchange or secondary market. By purchasing this Annuity, you represent and warrant that you are not using this Annuity, or any of its riders, for speculation, arbitrage, viatication or any other type of collective investment scheme.

Currently, we will not issue an Annuity, permit changes in ownership or allow assignments to certain ownership types, including but not limited to: corporations, partnerships and endowments. Further, we will only issue an Annuity, allow changes of ownership and/or permit assignments to certain ownership types if the Annuity is held exclusively for the benefit of the designated Annuitant. These rules are subject to state law. You may name as Owner of the Annuity a grantor trust with one grantor only if the grantor is designated as the Annuitant. You may name as Owner of the Annuity, subject to state availability, a grantor trust with two grantors only if the oldest grantor is designated as the Annuitant. We will not issue Annuities to grantor trusts with more than two grantors and we will not permit co-grantors to be designated as either Joint Annuitants during the Accumulation Period or Contingent Annuitants.

Where the Annuity is owned by a grantor trust, the Annuity must be distributed within 5 years after the date of death of the first grantor's death under Section 72(s) of the Code. If a non-Annuitant grantor predeceases the Annuitant, the Surrender Value will be payable. The Surrender Value will be payable to the trust and there is no Death Benefit provided under the Annuity except as otherwise described below. Between the date of death of the non-Annuitant grantor and the date that we distribute the Surrender Value, the Account Value may be reduced by the Total insurance charge and may be subject to Variable Option fluctuations. If the Annuitant dies after the death of the first grantor, but prior to the distribution of the Surrender Value of the Annuity, then the Death Benefit amount will be payable as a lump sum to the Beneficiary(ies).

**Age Restrictions:** Unless we agree otherwise and subject to our rules, in order to issue the Annuity we must receive the application, in Good Order, before the oldest of the Owner(s) and Annuitant(s) turns age 81 for the X Series and age 86 for the B Series, L Series, and C Series. No additional Purchase Payments will be permitted after age 85 for any of the Annuities. If you purchase a Beneficiary Annuity, the maximum issue age is 70 based on the Key Life. The availability and level of protection of certain optional benefits may vary based on the age of the oldest Owner (or Annuitant, if

------

[Back to **Table of Contents**](#TOC_956)

entity-owned) on the Issue Date of the Annuity or the date of the Owner's death. In addition, the broker-dealer firm through which you are purchasing an Annuity may impose a younger maximum issue age than what is described above - check with the broker-dealer firm for details. The "Annuitant" refers to the natural person upon whose life annuity payments payable to the Owner are based.

**Additional Purchase Payments: Effective December 31, 2020, additional Purchase Payments are no longer permitted after the first anniversary** **of the election of certain optional benefit. Please see "**[**<u>Benefits Available Under the Contract</u>**](#chapter_11-sect1_1_956)**" for further information related to additional** **Purchase Payments.** Previously, we allowed additional Purchase Payments, subject to the limitations below, and if allowed by applicable state law, provided that the payment is at least $100 (we impose a $50 minimum for electronic funds transfer ("EFT") purchases) and the Account Value has not been reduced to zero. We may amend this Purchase Payment minimum, and/or limit the Investment Options to which you may direct Purchase Payments. You may make additional Purchase Payments, unless the Annuity is held as a Beneficiary Annuity, at any time before the earlier of the Annuity Date and (i) for Annuities that are not entity-owned, the oldest Owner's 86<sup>th</sup> birthday or (ii) for entity-owned Annuities, the Annuitant's 86<sup>th</sup> birthday.

Each additional Purchase Payment will be allocated to the Investment Options according to the instructions you provide with such Purchase Payment. You may not provide allocation instructions that apply to more than one additional Purchase Payment. Thus, if you have not provided allocation instructions with a particular additional Purchase Payment, we will allocate the Purchase Payment on a proportional basis to the Variable Options in which your Account Value is then allocated, excluding Variable Options to which you may not choose to allocate Account Value, such as the AST Investment Grade Bond Portfolio.

**For Annuities that have one of the Highest Daily Lifetime Income v2.1 benefits, we may limit, suspend or reject any additional Purchase** **Payment at any time, but would do so only on a non-discriminatory basis. Circumstances where we may limit, restrict, suspend or reject** **additional Purchase Payments include, but are not limited to, the following:**

• **if we determine that, as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual** **Income Amount is being increased in an unintended fashion (among the factors we will use in making a determination as to** **whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional** **Purchase Payment(s));** 

• **if we are not then offering this benefit for new issues; or** 

• **if we are offering a modified version of this benefit for new issues.** 

**If we exercise our right to suspend, reject and/or place limitations on the acceptance of additional Purchase Payments, you may no longer be** **able to fund the Highest Daily Lifetime Income v2.1 benefit that you selected to the level you originally intended. This means that you may no** **longer be able to increase the values associated with your Highest Daily Lifetime Income v2.1 benefit through additional Purchase Payments**. This would also impact your ability to make annual contributions to certain qualified Annuities. Please see the "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)" section for further information on additional Purchase Payments.

Depending on the tax status of your Annuity (e.g., if you own the Annuity through an IRA), there may be annual contribution limits dictated by applicable law. Please see "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for additional information on these contribution limits.

If you have elected to participate in the 6 or 12 Month DCA Program, your initial Purchase Payment will be applied to your chosen program. Each time you make an additional Purchase Payment, you will need to elect a new 6 or 12 Month DCA Program for that additional Purchase Payment. If you do not provide such instructions, we will allocate that additional Purchase Payment on a proportional basis to the Variable Options in which your Account Value is then allocated, excluding Variable Options to which you may not choose to allocate Account Value. Additionally, if your initial Purchase Payment is funded from multiple sources (e.g., a transfer of assets/1035 exchange) then the total amount that you have designated to fund your Annuity will be treated as the initial Purchase Payment for purposes of your participation in the 6 or 12 Month DCA Program.

Additional Purchase Payments may also be limited if the total Purchase Payments under this Annuity and other annuities equals or exceeds $1,000,000, as described in more detail in "Initial Purchase Payment," above.

**DESIGNATION OF OWNER, ANNUITANT, AND BENEFICIARY**

**Owner, Annuitant and Beneficiary Designations**: We will ask you to name the Owner(s), Annuitant and one or more Beneficiaries for your Annuity.

• <u>Owner</u>:
 Each Owner holds all rights under the Annuity. You may name up to two Owners in which case all ownership rights are held jointly. Generally,
 joint Owners are required to act jointly; however, if each Owner provides us with a written form that we find acceptable, we will permit
 each Owner to act independently on behalf of both Owners. All information and documents that we are required to send you will be sent
 to the first named Owner. Co-ownership by entity Owners or an entity Owner and an individual is not permitted. Refer to the Glossary of
 Terms for a complete description of the term "Owner." Prior to Annuitization, there is no right of survivorship (other than
 any spousal continuance
 right that may be available to a surviving spouse).

• <u>Annuitant</u>:
 The Annuitant is the person upon whose life we make annuity payments. You must name an Annuitant who is a natural person. We
 do not accept a designation of joint Annuitants during the Accumulation Period. In limited circumstances and where allowed by law, we may allow you to
 name one or more "Contingent Annuitants" with our prior approval. Generally, a Contingent Annuitant will become the

------

[Back to **Table of Contents**](#TOC_956)

Annuitant if the Annuitant dies before the Annuity Date. Please refer to the discussion of "Considerations for Contingent Annuitants" in the "[<u>Taxes</u>](#chapter_14-sect1_1_956)" section of the prospectus. For Beneficiary Annuities, instead of an Annuitant there is a "Key Life" which is used to determine the annual required distributions.

• <u>Beneficiary</u>:
 The Beneficiary is the person(s) or entity you name to receive the Death Benefit. Your Beneficiary designation should be the exact
 name of your Beneficiary, not only a reference to the Beneficiary's relationship to you. If you use a class designation in lieu
 of designating individuals
 (e.g. "surviving children"), we will pay the class of Beneficiaries as determined at the time of your death and not the class
 of Beneficiaries that existed at the time the designation was made. If no Beneficiary is named, the Death Benefit will be paid to you or your estate. For
 Annuities that designate a custodian, trust, or a plan as Owner, the custodian or plan must also be designated as the Beneficiary.
 If no Beneficiary is named for a trust owned contract, the default beneficiary will be the contract owner. For Beneficiary Annuities,
 instead of a Beneficiary, the term "Successor" is used. If an Annuity is co-owned by spouses, we do not offer Joint Tenants
 with Rights of Survivorship
 (JTWROS). Both Owners would need to be listed as the primary Beneficiaries for the surviving spouse to maintain the
 contract, unless you elect an alternative Beneficiary designation.

Your right to make certain designations may be limited if your Annuity is to be used as an IRA, Beneficiary Annuity or other "qualified" investment that is given beneficial tax treatment under the Code. You should seek competent tax advice on the income, estate and gift tax implications of your designations.

**"** **Beneficiary** **" Annuity**

You may purchase an Annuity if you are a Beneficiary of an account that was owned by a decedent, subject to the following requirements. You may transfer the proceeds of the decedent's account into one of the Annuities described in this prospectus and receive distributions that are required by the tax laws. This transfer option is not available if the proceeds are being transferred from an annuity issued by us or one of our affiliates and the annuity offers a "[<u>Beneficiary Continuation Option</u>](#chapter_11-sect1_14_956)".

Upon purchase, the Annuity will be issued in the name of the decedent for your benefit. We do not assess a CDSC (if applicable) on distributions from your Annuity if you are required by law to take such distributions from your Annuity at the time it is taken, provided the amount withdrawn is the amount we calculate and is paid out through a program of systematic withdrawals that we make available.

For IRAs and Roth IRAs, an "eligible designated beneficiary" must elect stretch distributions by December 31<sup>st</sup> of the year following the year of the decedent's death. If you are the surviving spouse Beneficiary, distributions may be deferred until the decedent would have attained the applicable age. However, if you choose to defer distributions, you are responsible for complying with the distribution requirements under the Code, and you must make an election as to when you would like distributions to begin. For additional information regarding the tax considerations applicable to Beneficiaries of an IRA or Roth IRA, including information about the applicable age, see "[<u>Taxes</u>](#chapter_14-sect1_1_956)".

For Non-qualified Annuities, distributions must begin within one year of the decedent's death. For additional information regarding the tax considerations applicable to Beneficiaries of a non-qualified Annuity see "Required Distributions Upon Your Death for Non-qualified Annuity Contracts" in "[<u>Taxes</u>](#chapter_14-sect1_1_956)".

You may take withdrawals in excess of your required distributions, however such withdrawals may be subject to the Contingent Deferred Sales Charge. Any withdrawals you take count toward the required distribution for the year. All applicable charges will be assessed against your Annuity, such as the insurance charge and the Annual Maintenance Fee.

The Annuity provides a basic Death Benefit upon death, and you may name "successors" who may either receive the Death Benefit as a lump sum or continue receiving distributions after your death under the Beneficiary Continuation Option.

Please note the following additional limitations for a Beneficiary Annuity:

• No
 additional Purchase Payments are permitted. You may only make a one-time initial Purchase Payment transferred to us directly from another
 annuity or eligible account. You may not make your Purchase Payment as an indirect rollover, or combine multiple assets or death
 benefits into a single contract as part of this Beneficiary Annuity.

• You
 may not elect any optional living or death benefits.

• You
 may not annuitize the Annuity; no annuity options are available.

• You
 may participate only in the following programs: Auto Rebalancing, Dollar Cost Averaging (but not the 6 or 12 Month DCA Program), or systematic
 withdrawals.

• You
 may not assign or change ownership of the Annuity, and you may not change or designate another life upon which distributions are based.
 A Beneficiary Annuity may not be co-owned.

• If
 the Annuity is funded by means of transfer from another Beneficiary Annuity with another company, we require that the sending company
 or the beneficial Owner provide certain information in order to ensure that applicable required distributions have been made prior
 to the transfer of the contract proceeds to us. We further require appropriate information to enable us to accurately determine future distributions from
 the Annuity. Please note we are unable to accept a transfer of another Beneficiary Annuity where taxes are calculated based
 on an exclusion amount or an exclusion ratio of earnings to original investment. We are also unable to accept a transfer of an annuity
 that has annuitized.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• The
 beneficial Owner of the Annuity can be an individual, grantor trust, or, for an IRA or Roth IRA, an estate or a qualified trust. In general, a qualified trust
 (1) must be valid under state law; (2) must be irrevocable or become irrevocable by its terms upon the death of the IRA or Roth
 IRA Owner; and (3) the Beneficiaries of the trust who are Beneficiaries with respect to the trust's interest in this Annuity must
 be identifiable from
 the trust instrument and must be individuals. A qualified trust may be required to provide us with a list of all Beneficiaries to
 the trust (including contingent and remainder Beneficiaries with a description of the conditions on their entitlement), all of whom must
 be individuals, as
 of September 30 <sup>th</sup> of the year following the year of death of the IRA or Roth IRA Owner, or date of Annuity application if later.
 The trustee may also be required to provide a copy of the trust document upon request. If the beneficial Owner of the Annuity is a grantor
 trust, distributions must be based on the life expectancy of the grantor who is named as the Annuitant. If the beneficial Owner of the
 Annuity is a qualified trust, distribution options may be limited. In certain instances, we may allow distributions based on the life expectancy of a sole
 individual beneficiary under the trust if they qualify as an eligible designated beneficiary. Special rules and limitations may
 apply to qualified trusts with multiple beneficiaries.

• If
 this Beneficiary Annuity is transferred to another company as a tax-free exchange with the intention of qualifying as a Beneficiary annuity
 with the receiving company, we may require certifications from the receiving company that required distributions will be made as required
 by law.

• If
 you are transferring proceeds as Beneficiary of an annuity that is owned by a decedent, we must receive your transfer request at least 45 days prior to
 your first or next required distribution. If, for any reason, your transfer request impedes our ability to complete your required
 distribution by the required date, we will be unable to accept your transfer request.

**RIGHT TO CANCEL**

You may cancel (or "Free Look") your Annuity for a refund by notifying us in Good Order or by returning the Annuity to our Service Center or to the representative who sold it to you within 10 days after you receive it (or such other period as may be required by applicable law). The Annuity can be mailed or delivered either to us, at our Service Center, or to the representative who sold it to you. Return of the Annuity by mail is effective on being postmarked, properly addressed and postage prepaid.

Subject to applicable law, the amount of the refund will equal the Account Value as of the Valuation Day we receive the returned Annuity at our Service Center or the cancellation request in Good Order, plus any fees or tax charges deducted from the Purchase Payment upon allocation to the Annuity or imposed under the Annuity, less any applicable federal and state income tax withholding. However, where we are required by applicable law to return Purchase Payments, we will return the greater of Account Value and Purchase Payments. In addition, when you allocate Account Value to any DCA Market Value Adjustment Option and you take a withdrawal, a Market Value Adjustment may be assessed, which could be positive or negative. When a Market Value Adjustment is assessed, a Liquidity Factor of 0.25% is applied and will reduce the amount being withdrawn from the DCA Market Value Adjustment Option. If you decide to Free Look your Annuity, a Market Value Adjustment may be assessed (except in Return of Purchase Payment states), but we would not apply the Liquidity Factor of 0.25%. As a result, the amount of your refund may be reduced by a Market Value Adjustment, but will not be reduced by the Liquidity Factor.

**PURCHASE CREDITS UNDER THE X SERIES**

As detailed below, we apply a "Purchase Credit" to your Annuity's Account Value with respect to certain Purchase Payments you make under the X Series Annuity. The Purchase Credit is equal to a percentage of each Purchase Payment. To determine the amount of the Purchase Credit, we multiply the amount of the Purchase Payment by the applicable Purchase Credit percentage.

With respect to Purchase Payments (of any amount) received during Annuity Years 1 through 4, the Credit percentage will equal 6%, so long as the oldest Owner (or Annuitant, if entity-owned) of the Annuity is younger than 82 at the time the Purchase Payment is made. If the oldest Owner (or Annuitant, if entity owned) is aged 82-85 at the time the Purchase Payment (of any amount) is made, the Credit percentage will equal 3% during Annuity Years 1-4. With respect to Purchase Payments received on the fourth anniversary of the Issue Date and thereafter, regardless of the Owner or Annuitant's age, the Credit percentage will be 0%.

Each Purchase Credit is allocated to your Account Value at the time the Purchase Payment is applied to your Account Value. The amount of the Purchase Credit is allocated to the Investment Options in the same ratio as the applicable Purchase Payment is applied.

We do not consider the Purchase Credit as an "investment in the contract" for income tax purposes.

**Example of Applying the Purchase Credit**

Assume you are 65 years old and you make an initial Purchase Payment of $450,000. We would apply a 6.0% Purchase Credit to your Purchase Payment and allocate the amount of the Purchase Credit ($27,000 = $450,000 ×.06) to your Account Value in the proportion that your Purchase Payment is allocated.

------

[Back to **Table of Contents**](#TOC_956)

**Recapture of Purchase Credits**

The amount of any Purchase Credit applied to your X Series Account Value can be recaptured by Pruco Life under certain circumstances. These are the only situations in which Credits may be recaptured:

• any Purchase Credit applied to your Account Value on Purchase Payments made within the period beginning 12 months prior to the Owner's date
 of death and ending on the date of Due Proof of Death will be recaptured. We do not currently recapture any Purchase Credits
 at the time of spousal assumption of the Annuity.

• the amount available under the Medically-Related Surrender portion of the Annuity will not include the amount of any Purchase Credit associated with any
 Purchase Payments made within 12 months of the date the Medically-Related Surrender is received in Good Order at our
 Service Center; and

• if you Free Look your Annuity, the amount returned to you will not include the amount of any Purchase Credit.

The amount we recapture will equal the Purchase Credit, without adjustment up or down for investment performance. Therefore, any gain on the Purchase Credit amount will not be recaptured. But if there was a loss on the Purchase Credit, the amount we recapture will still equal the amount of the Purchase Credit.

**Examples of Recapturing Credits**

*Recapture from payment of Death Benefits*

• Assume you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the
 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.0% Credit, for a total of $3,600. If the Death Benefit becomes payable
 in the 9 <sup>th</sup> month after the Issue Date, the amount of the Death Benefit would be reduced by the entire amount of the prior Credits ($3,600).

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.0% Credit, for a total of $3,600. If death occurs in the 16 <sup>th</sup> month after the Issue
 Date, the amount of the Death Benefit would be reduced but only in the amount of those Credits applied within the previous
 12-months. Since the initial Purchase Payment (and the Credits that were applied) occurred more than 12-months before the date
 of death, the Death Benefit would not be reduced by the amount of the Credits applied to the initial Purchase Payment. However, the $10,000
 additional Purchase Payment was made within 12-months of the date of death. Therefore, the amount of the Death Benefit would be
 reduced by the amount of the Credits payable on the additional Purchase Payment ($600).

• NOTE:
 If the Death Benefit would otherwise have been equal to the Purchase Payments minus any withdrawals due to poor investment performance,
 we will not reduce the amount of the Death Benefit by the amount of the Credits as shown in Example 2 above.

*Recapture from Medically-Related Surrenders*

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You receive a Credit of $3,000 ($50,000 ×  .06). The Annuitant is diagnosed
 as terminally ill in the 6 <sup>th</sup> month after the Issue Date and we grant your request to surrender your Annuity under the
 medically-related surrender provision. Assuming the Credits were applied within 12-months of the date of diagnosis of the terminal illness,
 the amount that would be payable under the medically-related surrender provision would be reduced by the entire amount of the Credits
 ($3,000).

• Assume
 you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 in the 6 <sup>th</sup> month after the Issue
 Date. Both of the Purchase Payments received a 6.0% Credit, for a total of $3,600. The Annuitant is diagnosed as terminally
 ill in the 16 <sup>th</sup> month after the Issue Date and we grant your request to surrender your Annuity under the medically-related surrender
 provision. Since the initial Purchase Payment (and the Credits that were applied) occurred more than 12-months before the diagnosis,
 the amount that would be payable upon the medically-related surrender provision would not be reduced by the amount of the Credits
 applied to the initial Purchase Payment. However, the $10,000 additional Purchase Payment was made within 12-months of the date
 of diagnosis. Therefore, the amount that would be payable under the medically-related surrender provision would be reduced by the amount
 of the Credits payable on the additional Purchase Payment ($600).

------

[Back to **Table of Contents**](#TOC_956)

**SCHEDULED PAYMENTS DIRECTLY FROM A BANK ACCOUNT**

You can make additional Purchase Payments to your Annuity by authorizing us to deduct money directly from your bank account and applying it to your Annuity, unless the Annuity is held as a Beneficiary Annuity. Investment restrictions will apply if you elect optional benefits. No additional Purchase Payments are permitted if you have elected the Beneficiary Annuity. We may suspend or cancel electronic funds transfer privileges if sufficient funds are not available from the applicable financial institution on any date that a transaction is scheduled to occur. We may also suspend or cancel electronic funds transfer privileges if we have limited, restricted, suspended or terminated the ability of Owners to submit additional Purchase Payments.

**SALARY REDUCTION PROGRAMS**

These types of programs are only available with certain types of qualified investments. If your employer sponsors such a program, we may agree to accept periodic Purchase Payments through a salary reduction program as long as the allocations are not directed to the Market Value Adjustment Options.

**VALUING THE VARIABLE OPTIONS**

When you allocate Account Value to a Variable Option, you are purchasing Units of the Variable Option. Each Variable Option invests exclusively in shares of an underlying Portfolio. The value of the Units fluctuates with the Variable Option fluctuations of the Portfolios. The value of the Units also reflects the daily accrual for the insurance charge, and if you elected one or more optional benefits whose annualized charge is deducted daily, the additional charge for such benefits.

Each Valuation Day, we determine the price for a Unit of each Variable Option, called the "Unit Price" or Unit Value. The Unit Price is used for determining the value of transactions involving Units of the Variable Options. We determine the number of Units involved in any transaction by dividing the dollar value of the transaction by the Unit Price of the Variable Option as of the Valuation Day. There may be several different Unit Prices for each Variable Option to reflect the insurance charge and the charges for any optional benefits. The Unit Price for the Units you purchase will be based on the total charges for the benefits that apply to your Annuity.

**Example**

Assume you allocate $5,000 to a Variable Option. On the Valuation Day you make the allocation, the Unit Price is $14.83. Your $5,000 buys 337.154 Units of the Variable Option. Assume that later, you wish to transfer $3,000 of your Account Value out of that Variable Option and into another Variable Option. On the Valuation Day you request the transfer, the Unit Price of the original Variable Option has increased to $16.79 and the Unit Price of the new Variable Option is $17.83. To transfer $3,000, we redeem 178.677 Units at the current Unit Price, leaving you 158.477 Units. We then buy $3,000 of Units of the new Variable Option at the Unit Price of $17.83. You would then have 168.255 Units of the new Variable Option.

**VALUING THE MARKET VALUE ADJUSTMENT OPTIONS**

During the Guarantee Period, we use the concept of an "Interim Value" for the Market Value Adjustment Options and DCA Market Value Adjustment Options. The Interim Value can be calculated on any day and is equal to the initial value allocated to a Market Value Adjustment Option or DCA Market Value Adjustment Option, plus all interest credited to the Market Value Adjustment Option or DCA Market Value Adjustment Option as of the date calculated. The Interim Value does not include the impact of any Market Value Adjustment. If there have been any transfers or withdrawals from a Market Value Adjustment Option or DCA Market Value Adjustment Option, the Interim Value will reflect the withdrawal of those amounts and any interest credited to those amounts before they were withdrawn. To determine the value of a Market Value Adjustment Option or DCA Market Value Adjustment Option on any day more than 30 days prior to the end of its Guarantee Period, we multiply the Unadjusted Account Value of the Market Value Adjustment Option or DCA Market Value Adjustment Option by the Market Value Adjustment factor. See [<u>"Charges and Adjustments"</u>](#chapter_8-sect1_1_956) and [<u>"Description of Insurance Company,</u> <u>Registered Separate Account, and Investment Options"</u>](#chapter_7-sect1_1_956) for more information about the Market Value Adjustment.

**PROCESSING AND VALUING TRANSACTIONS**

Pruco Life is generally open to process financial transactions on those days that the New York Stock Exchange (NYSE) is open for trading. There may be circumstances where the NYSE does not open on a regularly scheduled date or time or closes at an earlier time than scheduled (normally 4:00 p.m. Eastern Time). Generally, financial transactions requested in Good Order before the close of regular trading on the NYSE will be processed according to the value next determined following the close of business. Financial transactions requested on a non-Valuation day or after the close of regular trading on the NYSE will be processed based on the value next computed on the next Valuation Day.

We will not process any financial transactions involving purchase or redemption orders on days the NYSE is closed. Pruco Life will also not process financial transactions involving purchase or redemption orders or transfers on any day that:

• trading
 on the NYSE is restricted;

• an
 emergency, as determined by the SEC, exists making redemption or valuation of securities held in the Separate Account impractical; or

• the
 SEC, by order, permits the suspension or postponement for the protection of security holders.

------

[Back to **Table of Contents**](#TOC_956)

In certain circumstances, we may need to correct the processing of an order. In such circumstances, we may incur a loss or receive a gain depending upon the price of the security when the order was executed and the price of the security when the order is corrected. With respect to any gain that may result from such order correction, we will retain any such gain as additional compensation for these correction services.

**Initial Purchase Payments:** We no longer allow new purchases of this Annuity. We are required to allocate your initial Purchase Payment to the Variable Options within two (2) Valuation Days after we receive the Purchase Payment in Good Order at our Service Center. If we do not have all the required information to allow us to issue your Annuity, we may retain the Purchase Payment while we try to reach you or your representative to obtain all of our requirements. If we are unable to obtain all of our required information within five (5) Valuation Days, we are required to return the Purchase Payment to you at that time, unless you specifically consent to our retaining the Purchase Payment while we gather the required information. Once we obtain the required information, we will invest the Purchase Payment (and any associated Purchase Credit with respect to the X Series) and issue an Annuity within two (2) Valuation Days.

With respect to your initial Purchase Payment and any additional Purchase Payments pending investment in our Separate Account, we may hold the amount temporarily in a suspense account and we may earn interest on such amount. You will not be credited with interest during that period. The monies held in the suspense account may be subject to claims of our general creditors. Also, the Purchase Payment will not be reduced nor increased due to Variable Option fluctuations during that period.

As permitted by applicable law, the broker-dealer firm through which you purchase your Annuity may forward your initial Purchase Payment to us prior to approval of your purchase by a registered principal of the firm. These arrangements are subject to a number of regulatory requirements, including that customer funds will be deposited in a segregated bank account and held by the insurer until such time that the insurer is notified of the firm's principal approval and is provided with the application, or is notified of the firm principal's rejection. In addition, the insurer must promptly return the customer's funds at the customer's request prior to the firm's principal approval or upon the firm's rejection of the application. The monies held in the bank account will be held in a suspense account within our general account and we may earn interest on amounts held in that suspense account. Contract Owners will not be credited with any interest earned on amounts held in that suspense account. The monies in such suspense account may be subject to claims of our general creditors.

**Additional Purchase Payments:** We will apply any additional Purchase Payments (and any associated Purchase Credit with respect to the X Series) as of the Valuation Day that we receive the Purchase Payment at our Service Office in Good Order. We may limit, restrict, suspend or reject any additional Purchase Payments at any time, on a non-discriminatory basis. See "Additional Purchase Payments" under "[<u>Requirements for Purchasing the Annuity</u>](#chapter_12-sect1_2_956)". With respect to your Additional Purchase Payments that are pending investment in our Separate Account, we may hold the amount temporarily in a suspense account and we may earn interest on such amount. You will not be credited with interest during that period. The monies held in the suspense account may be subject to claims of our general creditors. Also, the Purchase Payment will not be reduced nor increased due to Variable Option fluctuations during that period. **Additionally, effective December 31, 2020, additional Purchase Payments are not permitted after the first** **anniversary of the election of certain optional benefits.**

**Scheduled Transactions:** Scheduled transactions include transfers under Dollar Cost Averaging, the Asset Allocation Program, Auto Rebalancing, Systematic Withdrawals, Systematic Investments, Required Minimum Distributions, substantially equal periodic payments under section 72(t)/72(q) of the Code, annuity payments and fees that are assessed daily as a percentage of the net assets of the Variable Options. Scheduled transactions are processed and valued as of the date they are scheduled, unless the scheduled day is not a Valuation Day. In that case, the transaction will be processed and valued on the next Valuation Day, unless (with respect to Required Minimum Distributions, substantially equal periodic payments under Section 72(t)/72(q) of the Code, annuity payments and fees that are assessed daily as a percentage of the net assets of the Variable Options only), the next Valuation Day falls in the subsequent calendar year, in which case the transaction will be processed and valued on the prior Valuation Day.

In addition, if: you are taking your Annual Income Amount through our systematic withdrawal program; and the scheduled day is not a Valuation Day; and the next Valuation Day will occur in a new contract year, the transaction will be processed and valued on the prior Valuation Day.

**Unscheduled Transactions:** "Unscheduled" transactions include any other non-scheduled transfers and requests for partial withdrawals or Free Withdrawals or Surrenders. With respect to certain written requests to withdraw Account Value, we may seek to verify the requesting Owner's signature. Specifically, we reserve the right to perform a signature verification for (a) any withdrawal exceeding a certain dollar amount and (b) a withdrawal exceeding a certain dollar amount if the payee is someone other than the Owner. In addition, we will not honor a withdrawal request in which the requested payee is the financial professional or agent of record. We reserve the right to request a signature guarantee with respect to a written withdrawal request. If we do perform a signature verification, we will pay the withdrawal proceeds within 7 days after the withdrawal request was received by us in Good Order, and will process the transaction in accordance with the discussion in "[<u>Processing And Valuing Transactions</u>](#chapter_12-sect1_9_956)".

**Medically-Related Surrenders & Death Benefits:** Medically-Related Surrender requests and Death Benefit claims require our review and evaluation before processing. We price such transactions as of the date we receive at our Service Center in Good Order all supporting documentation we require for such transactions.

We generally pay any surrender request or death benefit claims from the Separate Account within 7 days of our receipt of your request in Good Order at our Service Center.

**Change in Daily Asset-Based Charges:** After the 9<sup>th</sup> Annuity year, your Annuity will become subject to a lower daily asset-based charge. We will process a transaction where your Account Value allocated to the Variable Options will be used to purchase new Units of the same Variable Options that reflect the decreased insurance charge (and the charge for any optional benefits you have elected). The number of Units attributed to your Annuity will be

------

[Back to **Table of Contents**](#TOC_956)

decreased and the Unit Price of each Unit of the Variable Options in which you invested will be increased. The adjustment in the number of Units and Unit price will not affect your Account Value at the time that the transaction is processed. However, beginning on that date, your Account Value will be determined based on the change in the value of Units that reflect the decreased insurance charge and any other optional benefits that you have elected.

**Termination of Optional Benefits:** In general, if an optional benefit terminates, we will no longer deduct the charge we apply to purchase the optional benefit. However, for the Highest Daily Lifetime Income v2.1, Highest Daily Lifetime Income 2.0, Highest Daily Lifetime Income or Highest Daily Lifetime 6 Plus Suite of benefits, if the benefit terminates for any reason other than death or Annuitization, we will deduct a final charge upon termination, based on the number of days since the charge for the benefit was most recently deducted. Certain optional benefits may be added after you have purchased your Annuity. On the date a charge no longer applies or a charge for an optional benefit begins to be deducted, your Annuity will become subject to a different charge.

------

[Back to **Table of Contents**](#TOC_956)

**SURRENDERS AND WITHDRAWALS**

------

**TYPES OF DISTRIBUTIONS AVAILABLE TO YOU**

During the Accumulation Period you can access your Account Value through partial withdrawals, systematic withdrawals, and where required for tax purposes, Required Minimum Distributions. You can also surrender your Annuity at any time. Depending on your instructions, we may deduct a portion of the Account Value being withdrawn or surrendered as a CDSC. If you surrender your Annuity, in addition to any CDSC, we may deduct the Annual Maintenance Fee, any Tax Charge that applies and the charge for any optional benefits and may impose a Market Value Adjustment. Certain amounts may be available to you each Annuity Year that are not subject to a CDSC. These are called "Free Withdrawals." Unless you notify us differently as permitted, partial withdrawals are taken on a proportional basis (i.e. "on a proportional basis" meaning that the percentage of each Investment Option withdrawn is the same percentage that the Investment Option bears to the total Account Value). Each of these types of distributions is described more fully below.

If you have an optional living benefit, and you take a withdrawal deemed to be Excess Income that brings your Unadjusted Account Value to zero, both the benefit and the Annuity itself will terminate. See "[<u>Optional Living Benefits</u>](#chapter_11-sect1_2_956)" for more information.

**TAX IMPLICATIONS FOR DISTRIBUTIONS FROM NON-QUALIFIED ANNUITIES**

**Prior to Annuitization**

For federal income tax purposes, a distribution prior to Annuitization is deemed to come first from any "gain" in your Annuity and second as a return of your "cost basis", if any. Distributions from your Annuity are generally subject to ordinary income taxation on the amount of any investment gain unless the distribution qualifies as a non-taxable exchange or transfer. If you take a distribution prior to the taxpayer's age 59½, you may be subject to a 10% additional tax in addition to ordinary income taxes on any gain. You may wish to consult a professional tax advisor for advice before requesting a distribution.

**During Annuitization**

During the Annuitization period, a portion of each annuity payment is taxed as ordinary income at the tax rate you are subject to at the time of the payment. The Code and regulations have "exclusionary rules" that we use to determine what portion of each annuity payment should be treated as a return of any cost basis you have in your Annuity. Once the cost basis in your Annuity has been distributed, the remaining annuity payments are taxable as ordinary income. The cost basis in your Annuity may be based on the cost basis from a prior contract in the case of a Section 1035 exchange or other qualifying transfer.

There may also be tax implications on distributions from qualified Annuities. See "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for information about qualified Annuities and for additional information about Non-qualified Annuities.

**FREE WITHDRAWAL AMOUNTS**

You can make a full or partial withdrawal from any of the Annuities during the Accumulation Period, although a CDSC, Market Value Adjustment, and tax consequences may apply. There is no CDSC with respect to the C Series. A CDSC may apply to the X Series, B Series, and L Series, but each Annuity offers a "Free Withdrawal" amount that applies only to partial withdrawals. The Free Withdrawal amount is the amount that can be withdrawn from your Annuity each Annuity Year without the application of any CDSC. The Free Withdrawal amount during each Annuity Year is equal to 10% of all Purchase Payments (excluding Purchase Credits) that are currently subject to a CDSC. Withdrawals made within an Annuity Year reduce the Free Withdrawal amount available for the remainder of the Annuity Year. If you do not make a withdrawal during an Annuity Year, you are not allowed to carry over the Free Withdrawal amount to the next Annuity Year. With respect to the C Series, because any withdrawal is free of a CDSC, the concept of "Free Withdrawal" is not applicable.

• The
 Free Withdrawal amount is not available if you choose to surrender your Annuity. Amounts withdrawn as a Free Withdrawal do not reduce
 the amount of CDSC that may apply upon a subsequent withdrawal or surrender of your Annuity.

• You
 can also make partial withdrawals in excess of the Free Withdrawal amount. The minimum partial withdrawal you may request is $100.

------

[Back to **Table of Contents**](#TOC_956)

**Example.** This example assumes that no withdrawals have previously been taken.

On January 3, to purchase your B Series Annuity, you make an initial Purchase Payment of $20,000.

On January 3 of the following calendar year, you make a subsequent Purchase Payment to your B Series Annuity of $10,000.

• Because
 in Annuity Year 1 your initial Purchase Payment of $20,000 is still within the CDSC schedule (see "Annuity Owner Transaction Expenses"),
 your Free Withdrawal amount in Annuity Year 1 equals $20,000 × 0.10, or $2,000.

• Because
 in Annuity Year 2 both your initial Purchase Payment of $20,000 and your subsequent Purchase Payment of $10,000 are still within
 the CDSC schedule (see "Annuity Owner Transaction Expenses"), your Free Withdrawal amount in Annuity Year 2 equals $20,000 × 0.10, plus
 $10,000 × 0.10, or $2,000 + $1,000 for a total of $3,000.

To determine if a CDSC applies to partial withdrawals, we first determine if you have previously withdrawn all Purchase Payments. If so, no CDSC applies. If you have not previously withdrawn all Purchase Payments, we:

1. First
 determine what, if any, amounts qualify as a Free Withdrawal. These amounts are not subject to the CDSC.

2. Next
 determine what, if any, remaining amounts are in excess of the Free Withdrawal amount. These amounts will be treated as withdrawals
 of Purchase Payments, as described in " [<u>Charges</u>](#chapter_8-sect1_1_956) – Contingent Deferred Sales Charge ("CDSC")". These amounts may be subject
 to the CDSC. Purchase Payments are withdrawn on a first-in, first-out basis.

3. Withdraw
 any remaining amounts from any other Account Value (including gains). These amounts are not subject to the CDSC.

Your withdrawal will include the amount of any applicable CDSC. Generally, you can request a partial withdrawal as either a "gross" or "net" withdrawal. In a "gross" withdrawal, you request a specific withdrawal amount, with the understanding that the amount you actually receive is reduced by any applicable CDSC as well as any applicable tax withholding. In a "net" withdrawal, you request a withdrawal for an exact dollar amount you want to receive after the deduction for any applicable CDSC as well as any applicable tax withholding. This means that an amount greater than the amount of your requested "net" withdrawal will be deducted from your Unadjusted Account Value if there is any CDSC and/or tax withholding. No matter how you specify the withdrawal, any Market Value Adjustment will not be applied to the amount you receive, but instead will be applied to your Unadjusted Account Value. If you do not provide instruction on how you want the withdrawal processed, we will process the withdrawal as a gross withdrawal.

We will deduct the partial withdrawal from your Unadjusted Account Value in accordance with your instructions, although if you have an optional living benefit, your withdrawal must be taken on a proportional basis from each of your Investment Options. For purposes of calculating the applicable portion to deduct from the Market Value Adjustment Options, the Unadjusted Account Value in all your Market Value Adjustment Options is deemed to be in one Investment Option. If you provide no instructions, then (a) we will take the withdrawal from your Variable Options and Market Value Adjustment Options in the same proportion that each such Investment Option represents to your total Unadjusted Account Value; (b) with respect to Market Value Adjustment Options with different amounts of time remaining until maturity, we take the withdrawal from the Market Value Adjustment Option with the shortest remaining duration, followed by the Market Value Adjustment Option with the next-shortest remaining duration (if needed to satisfy the withdrawal request) and so forth; (c) with respect to multiple Market Value Adjustment Options that have the same duration remaining until maturity, we take the withdrawal first from the Market Value Adjustment Option with the shortest overall Guarantee Period and (d) with respect to multiple Market Value Adjustment Options that have both the same Guarantee Period length and duration remaining until the end of the Guarantee Period, we take the withdrawal on a proportional basis from each such Market Value Adjustment Option.

**Please be aware that although a given partial withdrawal may qualify as a Free Withdrawal for purposes of not incurring a CDSC, the amount** **of the withdrawal could exceed the Annual Income Amount under one of the Highest Daily Lifetime Income v2.1, Highest Daily Lifetime** **Income 2.0, Highest Daily Lifetime Income or Highest Daily Lifetime 6 Plus benefits (or the LIA Amount, under Highest Daily Lifetime Income** **2.0 with LIA, Highest Daily Lifetime Income with LIA or Highest Daily Lifetime 6 Plus with LIA). In that scenario, the partial withdrawal would be** **deemed "Excess Income" – thereby reducing your Annual Income Amount (or LIA Amount) for future years. For example, if the Annual** **Income Amount under Highest Daily Lifetime Income v2.1 were $2,000 and a $2,500 withdrawal that qualified as a Free Withdrawal were made,** **the withdrawal would be deemed Excess Income, in the amount of $500.**

**SYSTEMATIC WITHDRAWALS**

Our systematic withdrawal program is an administrative program designed for you to withdraw a specified amount from your Annuity on an automated basis at the frequency you select. This program is available to you at no additional charge. We may cease offering this program or change the administrative rules related to the program at any time on a non-discriminatory basis.

You may not have a systematic withdrawal program, as described in this section, if you are receiving substantially equal periodic payments under Sections 72(t) and 72(q) of the Code or Required Minimum Distributions.

You may terminate your systematic withdrawal program at any time. Ownership changes to, and assignment of, your Annuity will terminate any systematic withdrawal program on the Annuity as of the effective date of the change or assignment. Requesting partial withdrawals while you have a systematic withdrawal program may also terminate your systematic withdrawal program as described below.

Systematic withdrawals can be made from your Account Value allocated to the Variable Options or certain Market Value Adjustment Options. Please note that systematic withdrawals may be subject to any applicable CDSC and/or a Market Value Adjustment. We will determine whether a CDSC applies and the amount in the same way as we would for a partial withdrawal.

------

[Back to **Table of Contents**](#TOC_956)

The minimum amount for each systematic withdrawal is $100. If any scheduled systematic withdrawal is for less than $100 (which may occur under a program that provides payment of an amount equal to the earnings in your Annuity for the period requested), we may postpone the withdrawal and add the expected amount to the amount that is to be withdrawn on the next scheduled systematic withdrawal.

Systematic Withdrawals based on the Free Withdrawal amount may be available, but only if the contract is still within the surrender charge period. The withdrawals will be calculated based only on the Purchase Payments that are still subject to CDSC.

We will withdraw systematic withdrawals from the Investment Options you have designated (your "designated Investment Options"). If you do not designate Investment Options for systematic withdrawals, we will withdraw systematic withdrawals from each Investment Option based on the percentage of your total Account Value allocated to each Investment Option at the time we pay out your withdrawal. If you have designated Investment Options and have elected a specific dollar amount which cannot be satisfied by your designated Investment Options, we will withdraw systematic withdrawals from all of your Investment Options based on the percentage of your total Account Value allocated to each Investment Option.

If you have certain optional living benefits that guarantee Lifetime Withdrawals (e.g., Highest Daily Lifetime Income v2.1) and elect, or have elected, to receive Lifetime Withdrawals using our systematic withdrawal program, please be advised of the current administrative rules associated with this program:

• Systematic
 withdrawals must be taken from your Account Value on a proportional basis from the Investment Options at the time we process
 each withdrawal.

• If
 you either have an existing or establish a new systematic withdrawal program for an amount less than, or equal to, your Annual Income Amount or LIA Amount
 (only applicable to a Lifetime Income Accelerator benefit) and we receive a request for a partial withdrawal from your
 Annuity in Good Order, we will process your partial withdrawal request and may cancel your systematic withdrawal program.

• If
 you either have or establish a new systematic withdrawal program for an amount greater than your Annual Income Amount or LIA Amount,
 it is important to note that these systematic withdrawals may result in Excess Income which will negatively impact your Annual Income
 Amount available in future Annuity Years. A combination of partial withdrawals and systematic withdrawals for an amount greater than
 your Annual Income Amount will further negatively impact on your future Annual Income Amount.

• For
 a discussion of how a withdrawal of Excess Income would impact your optional living benefits, see " [<u>Optional Living Benefits</u>](#chapter_11-sect1_2_956) ".

• If
 you are taking your entire Annual Income Amount through the systematic withdrawal program, you must take that withdrawal as a gross withdrawal,
 not a net withdrawal.

**SYSTEMATIC WITHDRAWALS UNDER SECTIONS 72(t)/72(q) OF THE INTERNAL REVENUE CODE**

If your Annuity is used as a funding vehicle for certain retirement plans that receive special tax treatment under Sections 401, 403(b), 408 or 408A of the Code, Section 72(t) of the Code may provide an exception to the 10% additional tax on distributions made prior to age 59½ if you elect to receive distributions as a series of "substantially equal periodic payments." For Annuities issued as Non-qualified annuities, Section 72(q) of the Code may provide a similar exemption from additional tax. Systematic withdrawals under Sections 72(t)/72(q) may be subject to a CDSC (except that no CDSC applies to the C Series) and/or a Market Value Adjustment. To request a program that complies with Sections 72(t)/72(q), you must provide us with certain required information in writing on a form acceptable to us. We may require advance notice to allow us to calculate the amount of 72(t)/72(q) withdrawals. There is no minimum Surrender Value we require to allow you to begin a program for withdrawals under Sections 72(t)/72(q). The minimum amount for any such withdrawal is $100 and payments may be made monthly, quarterly, semi-annually or annually. Please note that such withdrawals may be subject to a Market Value Adjustment.

You may also annuitize your Annuity and begin receiving payments for the remainder of your life (or life expectancy) as a means of receiving income payments before age 59½ that are not subject to the 10% additional tax.

**Please note that if a withdrawal under Sections 72(t) or 72(q) is scheduled to be effective between the last Valuation Day prior to December** **25<sup>th</sup>** **and December 31<sup>st</sup>** **of a given year, then we will process the withdrawal on the last Valuation Day prior to December 25<sup>th</sup>** **of that year.**

**REQUIRED MINIMUM DISTRIBUTIONS**

Required Minimum Distributions are a type of systematic withdrawal we allow to meet distribution requirements under Sections 401, 403(b) or 408 of the Code. Required Minimum Distribution rules do not apply to Roth IRAs during the Owner's lifetime. Under the Code, you may be required to begin receiving periodic amounts from your Annuity. In such case, we will allow you to make systematic withdrawals in amounts that satisfy the minimum distribution rules under the Code. We do not assess a CDSC (if applicable) or a Market Value Adjustment on Required Minimum Distributions from your Annuity if you are required by law to take such Required Minimum Distributions from your Annuity at the time it is taken, provided the amount withdrawn is the amount we calculate as the Required Minimum Distribution and is paid out through a program of systematic withdrawals that we make available. However, a CDSC (if applicable) or a Market Value Adjustment may be assessed on that portion of a systematic withdrawal that is taken to satisfy the Required Minimum Distribution rules in relation to other savings or investment plans under other qualified retirement plans.

The amount of the Required Minimum Distribution for your particular situation may depend on other annuities, savings or investments. We will only calculate the amount of your Required Minimum Distribution based on the value of your Annuity. We require three (3) days advance written notice to calculate and process the amount of your payments. You may elect to have Required Minimum Distributions paid out monthly, quarterly, semi-annually or annually. The $100 minimum amount that applies to systematic withdrawals applies to monthly Required Minimum Distributions but does not apply to Required Minimum Distributions taken out on a quarterly, semi-annual or annual basis.

------

[Back to **Table of Contents**](#TOC_956)

You may also annuitize your Annuity and begin receiving payments for the remainder of your life (or life expectancy) as a means of receiving income payments and satisfying the Required Minimum Distribution rules under the Code. Please see "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)" for further information relating to Required Minimum Distributions if you own a living benefit.

In any year in which the requirement to take Required Minimum Distributions is suspended by law, we reserve the right, in our sole discretion and regardless of any position taken on this issue in a prior year, to treat any amount that would have been considered as a Required Minimum Distribution if not for the suspension as eligible for treatment as described herein.

**Please note that if a Required Minimum Distribution is scheduled to be effective between the last Valuation Day prior to December 25<sup>th</sup>** **and** **December 31<sup>st</sup>** **of a given year, then we will process the Required Minimum Distribution on the last Valuation Day prior to December 25<sup>th</sup>** **of** **that year.**

See "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for a further discussion of Required Minimum Distributions. For the impact of Required Minimum Distributions on optional benefits and Excess Income, see "[<u>Highest Daily Lifetime Income v2.1 Benefit</u>](#chapter_11-sect1_3_956) – Required Minimum Distributions"

**SURRENDER VALUE**

During the Accumulation Period you can surrender your Annuity at any time, and will receive the Surrender Value. Upon surrender of your Annuity, you will no longer have any rights under the surrendered Annuity. Your Surrender Value is equal to the Account Value (which includes the effect of any Market Value Adjustment) less any applicable CDSC, any applicable tax charges, any applicable optional benefit charge, and any Annual Maintenance Fee.

We apply as a threshold, in certain circumstances, a minimum Surrender Value of $2,000. If you purchase an Annuity without a lifetime guaranteed minimum withdrawal benefit, we will not allow you to take any withdrawals that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value. Likewise, if you purchase an Annuity with a lifetime guaranteed minimum withdrawal benefit, we will not allow you to take a Non-Lifetime Withdrawal (see "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)– Non-Lifetime Withdrawal Feature") that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value. See "[<u>Annuity Period</u>](#chapter_10-sect1_1_956)" for information on the impact of the minimum Surrender Value at Annuitization.

**MEDICALLY-RELATED SURRENDERS**

Where permitted by law, you may request to surrender all or part of your X Series, B Series, or L Series Annuity prior to the Annuity Date without application of any otherwise applicable CDSC upon occurrence of a medically-related "Contingency Event" as described below (a "Medically Related Surrender"). The availability and requirements of such a surrender and waiver may vary by state. The CDSC and this waiver are not applicable to the C Series.

If you request a full surrender, the amount payable will be your Account Value minus the amount of any Purchase Credits applied within 12 months prior to your request in Good Order to surrender your Annuity. With respect to partial surrenders, we similarly reserve the right to recapture Purchase Credits. Any applicable Market Value Adjustment will apply to a Medically-Related Surrender. Although a CDSC will not apply to qualifying Medically-Related Surrenders, please be aware that a withdrawal from the Annuity before you have reached age 59½ may be subject to a 10% additional tax and other tax consequences - see "[<u>Taxes</u>](#chapter_14-sect1_1_956)".

This waiver of any applicable CDSC is subject to our rules in place at the time of your request, which currently include but are not limited to the following:

• If
 the Owner is an entity, the Annuitant must have been named or any change of Annuitant must have been accepted by us, prior to the "Contingency
 Event" described below in order to qualify for a Medically-Related Surrender;

• If
 the Owner is an entity, the Annuitant must be alive as of the date we pay the proceeds of such surrender request;

• If
 the Owner is one or more natural persons, all such Owners must also be alive at such time;

• We
 must receive satisfactory proof of the Owner's (or the Annuitant's if entity-owned) confinement in a Medical Care Facility
 or Fatal Illness
 in writing on a form satisfactory to us;

• no
 additional Purchase Payments can be made to the Annuity; and

• Proceeds
 will only be sent by check or electronic fund transfer directly to the Owner.

We reserve the right to impose a maximum amount of a Medically-Related Surrender (equal to $500,000), but we do not currently impose that maximum. That is, if the amount of a partial medically-related withdrawal request, when added to the aggregate amount of Medically-Related Surrenders you have taken previously under this Annuity and any other annuities we and/or our affiliates have issued to you exceeds that maximum amount, we reserve the right to treat the amount exceeding that maximum as not an eligible Medically-Related Surrender.

A "Contingency Event" occurs if the Owner (or Annuitant if entity-owned) is:

• first
 confined in a "Medical Care Facility" after the Issue Date and while the Annuity is in force, remains confined for at least
 90 consecutive days,
 and remains confined on the date we receive the Medically-Related Surrender request at our Service Center; or

• first
 diagnosed as having a "Fatal Illness" after the Issue Date and while the Annuity is in force. We may require a second or third
 opinion by a licensed
 physician chosen by us regarding a diagnosis of Fatal Illness. We will pay for any such second or third opinion.

------

[Back to **Table of Contents**](#TOC_956)

"Fatal Illness" means a condition (a) diagnosed by a licensed physician; and (b) that is expected to result in death within 24 months after the diagnosis in 80% of the cases diagnosed with the condition. "Medical Care Facility" means a facility operated and licensed pursuant to the laws of any United States jurisdiction providing medically necessary in-patient care, which is (a) prescribed by a licensed physician in writing; (b) recognized as a general hospital or long-term care facility by the proper authority of the United States jurisdiction in which it is located; (c) recognized as a general hospital by the Joint Commission on the Accreditation of Hospitals; and (d) certified as a hospital or long-term care facility; OR (e) a nursing home licensed by the United States jurisdiction in which it is located and offers the services of a Registered Nurse (RN) or Licensed Practical Nurse (LPN) 24 hours a day that maintains control of all prescribed medications dispensed and daily medical records. This waiver is not currently available in California and Massachusetts.

------

[Back to **Table of Contents**](#TOC_956)

**TAXES**

------

The tax considerations associated with an Annuity vary depending on whether the Annuity is (i) owned by an individual or non-natural person, and not associated with a tax-favored retirement plan, or (ii) held under a tax-favored retirement plan. We discuss the tax considerations for these categories of Annuities below. The discussion is general in nature and describes only federal income tax law. We generally do not describe state, local, foreign or other federal tax laws. It is based on current law and interpretations which may change. The information provided is not intended as tax advice. The federal income tax treatment of the Annuity is unclear in certain circumstances, and you should always consult a qualified tax advisor regarding the application of law to individual circumstances. Generally, the cost basis in an Annuity is the amount you pay into your Annuity, or into an annuity exchanged for your Annuity, on an after-tax basis less any withdrawals of such payments. Cost basis for a tax-favored retirement plan is provided only in limited circumstances, such as for contributions to a Roth IRA or nondeductible contributions to a traditional IRA. We do not track cost basis for tax-favored retirement plans, which is the responsibility of the Owner.

On advisory products, you may be able to establish, subject to our rules and restrictions, an advisory fee deduction program for a qualified or Non-qualified Annuity such that charges for investment advisory fees are not taxable to the Annuity Owner. Please note that there are additional requirements that must be satisfied in order for investment advisory fee charges paid from a Non-qualified Annuity to be treated as not taxable.

The discussion below generally assumes that the Annuity is issued to the Annuity Owner. For Annuities issued under the Beneficiary Continuation Option or as a Beneficiary Annuity, refer to the Taxes Payable by Beneficiaries for a Non-qualified Annuity and Required Distributions Upon Your Death for Qualified Annuities sections below.

**NON-QUALIFIED ANNUITIES**

**In general, as used in this prospectus, a Non-qualified Annuity is owned by an individual or non-natural person and is not associated with a** **tax-favored retirement plan.**

**Taxes Payable by You**

We believe the Annuity is an Annuity for tax purposes. Accordingly, as a general rule, you should not pay any tax until you receive money under the Annuity. Generally, all Annuity contracts issued by the same company (and affiliates) to you during the same calendar year must be treated as one Annuity for purposes of determining the amount of any withdrawal that is subject to tax under the rules described below. We treat advisory fee payments as an expense of the Annuity and not a taxable distribution if your Non-qualified Annuity satisfies the requirements of a Private Letter Ruling issued to us by the Internal Revenue Service ("IRS"). In accordance with the PLR, advisory fee payments from your Non-qualified Annuity are treated as an expense as long as your advisor attests to us that the PLR requirements have been met, including that the advisory fees will not exceed 1.5% of the Annuity's cash value and the Annuity only pays the advisor for fees related to investment advice with respect to the Annuity and no other services. The PLR does not generally allow such favorable tax treatment of advisory fee payments where a commission is also paid on the Annuity.

It is possible that the IRS could assert that some or all of the charges for the optional living or death benefits under the Annuity should be treated for federal income tax purposes as a partial withdrawal from the Annuity. If this were the case, the charge for this benefit could be deemed a withdrawal and treated as taxable income to the extent there are earnings in the Annuity. Additionally, for Owners under age 59½, the taxable income attributable to the charge for the benefit could be subject to the 10% additional tax. If the IRS determines that the charges for one or more benefits under the Annuity are taxable withdrawals, then the sole, primary, or surviving Owner will be provided with a notice from us describing available alternatives regarding these benefits.

**Taxes on Withdrawals and Surrender Before Annuity Payments Begin**

If you make a withdrawal from your Annuity or surrender it before annuity payments begin, the amount you receive will be taxed as ordinary income, rather than as a return of cost basis, until all gain has been withdrawn. At any time, there is no gain in your Annuity, payments will be treated as a nontaxable return of cost basis until all cost basis has been returned. After all cost basis is returned, all subsequent amounts will be taxed as ordinary income. An exception to this treatment exists for contracts that include Purchase Payments made prior to August 14, 1982 that are issued via 1035 exchange. Withdrawals from a contract with Purchase Payments made before August 14, 1982 are treated as a return of cost basis in the Annuity first until those pre-August 14, 1982 Purchase Payments are withdrawn. Moreover, income allocable to Purchase Payments made before August 14, 1982 is not subject to the 10% additional tax.

You will generally be taxed on any withdrawals from the Annuity while you are alive even if the withdrawal is paid to someone else. Withdrawals under any of the optional living benefits or as a systematic payment are taxed under these rules. If you assign or pledge all or part of your Annuity as collateral for a loan, the part assigned generally will be treated as a withdrawal and subject to income tax to the extent of gain. If the entire Account Value is assigned or pledged, subsequent increases in the Account Value are also treated as withdrawals for as long as the assignment or pledge remains in place. The cost basis is increased by the amount includible in income with respect to such assignment or pledge. If you transfer your Annuity for less than full consideration, such as by gift, you will also trigger tax on any gain in the Annuity. Under most circumstances, this rule does not apply if you transfer the Annuity to your spouse or if you transfer the Annuity incident to divorce.

------

[Back to **Table of Contents**](#TOC_956)

If you choose to receive payments under an interest payment option, or a Beneficiary chooses to receive a death benefit under an interest payment option, that election will be treated, for tax purposes, as surrendering your Annuity and will immediately subject any gain in the Annuity to income tax and possibly the 10% additional tax.

**Taxes on Annuity Payments**

If you select an annuity payment option as described in the "[<u>Annuity Period</u>](#chapter_10-sect1_1_956)" section of this prospectus, a portion of each annuity payment you receive will be treated as a partial return of your cost basis and will not be taxed. The remaining portion will be taxed as ordinary income. Generally, the nontaxable portion is determined by multiplying the annuity payment you receive by a fraction, the numerator of which is your cost basis (less any amounts previously received tax-free) and the denominator of which is the total expected payments under the Annuity. After the full amount of your cost basis has been recovered tax-free, the full amount of the annuity payments will be taxable. If annuity payments stop due to the death of the Annuitant before the full amount of your cost basis has been recovered, a tax deduction may be allowed for the unrecovered amount.

If your Account Value is reduced to zero but the Annuity remains in force due to a benefit provision, further distributions from the Annuity will be reported as annuity payments, using an exclusion ratio based upon the undistributed cost basis in the Annuity and the total value of the anticipated future payments until such time as all cost basis has been recovered.

**Maximum Annuity Date**

You must commence annuity payments no later than the first day of the calendar month following the maximum Annuity Date for your Annuity. Upon reaching the maximum Annuity Date you can no longer make Purchase Payments, surrender, exchange, or transfer your contract. The maximum Annuity Date may be the same as the Latest Annuity Date as described elsewhere in this prospectus. For some of our Annuities, you can choose to defer the Annuity Date beyond the default or Latest Annuity Date, as applicable, described in your Annuity. However, the IRS may not then consider your Annuity to be an Annuity under the tax law.

Please refer to your Annuity contract for the maximum Annuity Date.

**Partial Annuitization**

We do not currently permit partial annuitization.

**Medicare Tax on Net Investment Income**

The Code includes a Medicare tax on investment income. This tax assesses a 3.8% surtax on the lesser of (1) net investment income or (2) the excess of "modified adjusted gross income" over a threshold amount. The "threshold amount" is $250,000 for married taxpayers filing jointly or qualifying widow(er) with dependent child, $125,000 for married taxpayers filing separately, $200,000 for all others, and approximately $16,000 for estates and certain trusts. The taxable portion of payments received as a withdrawal, surrender, annuity payment, death benefit payment or any other actual or deemed distribution under the Annuity will be considered investment income for purposes of this surtax.

**10% Additional Tax for Early Withdrawal from a Non-Qualified Annuity**

You may owe a 10% additional tax on the taxable part of distributions received from your Non-qualified Annuity. Amounts are not subject to this additional tax if:

• the
 amount is paid on or after you reach age 59½;

• the
 amount is paid on or after your death (or the death of the Annuitant when the owner is not an individual);

• the
 amount received is attributable to your becoming disabled (as defined in the Code);

• generally
 the amount paid or received is in the form of substantially equal periodic payments (as defined in the Code) not less frequently than
 annually (please note that substantially equal periodic payments must continue until the later of reaching age 59½ or five years
 and the impermissible
 modification of payments during that time period will result in retroactive application of the 10% additional tax); or

• the
 amount received is paid under an immediate Annuity (within the meaning of the Code) and the annuity start date is no more than one year
 from the date of purchase (the first monthly annuity payment being required to be paid within 13 months).

Other exceptions to this tax may apply. You should consult your tax advisor for further details.

**Special Rules in Relation to Tax-free Exchanges Under Section 1035**

Section 1035 of the Code permits certain tax-free exchanges of a life insurance contract, annuity contract or endowment contract for an Annuity, including tax-free exchanges of annuity death benefits for a Beneficiary Annuity. Partial exchanges may be treated in the same way as tax-free 1035 exchanges of entire contracts, therefore avoiding current taxation of the partially exchanged amount as well as the 10% additional tax on pre-age 59½ withdrawals. In Revenue Procedure 2011-38, the IRS indicated that, for partial exchanges on or after October 24, 2011, where there is a surrender or distribution from either the initial annuity contract or receiving annuity contract within 180 days of the date on which the partial exchange was completed

------

[Back to **Table of Contents**](#TOC_956)

(other than an amount received as an annuity for a period of 10 years or more or during one or more lives), the IRS may not treat the transaction as a tax-free Section 1035 exchange. The IRS will apply general tax rules to determine the substance and treatment of the transaction in such cases. We strongly urge you to discuss any partial exchange transaction of this type with your tax advisor before proceeding with the transaction.

If an Annuity is purchased through a tax-free exchange of a life insurance contract, annuity contract or endowment contract that was purchased prior to August 14, 1982, then any Purchase Payments made to the original contract prior to August 14, 1982 will be treated as made to the new Annuity prior to that date. Generally, such pre-August 14, 1982 withdrawals are treated as a return of cost basis first until Purchase Payments made before August 14, 1982 are withdrawn. Moreover, income allocable to Purchase Payments made before August 14, 1982, is not subject to the 10% additional tax.

After you elect an Annuity Payout Option, we do not allow you to exchange your Annuity.

**Taxes Payable by Beneficiaries for a Non-Qualified Annuity**

If an Owner dies before the Annuity Date, the Death Benefit distributions are taxed at ordinary income tax rates. The value of the Death Benefit, as determined under federal law, is also included in the Owner's estate for federal estate tax purposes. Generally, the same income tax rules described above would also apply to amounts received by your Beneficiary. Choosing an option other than a lump sum Death Benefit may defer taxes. Certain minimum distribution requirements apply upon your death, as discussed further below in the Annuity Qualification section. Tax consequences to the Beneficiary vary depending upon the Death Benefit payment option selected. Generally, for payment of the Death Benefit:

• As
 a lump sum payment, the Beneficiary is taxed in the year of payment on gain in the Annuity.

• Within
 5 years of death of Owner, the Beneficiary is taxed on the lump sum payment. The Death Benefit must be taken as one lump sum payment
 within 5 years of the death of the Owner. Partial withdrawals are not permitted to be paid to Beneficiaries under our Annuity contracts.

• Under
 an Annuity or Annuity settlement option where distributions begin within one year of the date of death of the Owner, the Beneficiary is
 taxed on each payment with part as gain and part as return of cost basis. After the full amount of cost basis has been recovered tax-free,
 the full amount of the annuity payments will be taxable.

After the Annuity Date, if a period certain remains under the annuity option and the Annuitant dies before the end of that period, any remaining payments made to the Beneficiary will be fully excluded from income until the remaining cost basis is recovered and all annuity payments thereafter are fully includible in income. If we allow the Beneficiary to commute the remaining payments in a lump sum, the proceeds will be taxable as a surrender.

**Considerations for Contingent Annuitants:** We may allow the naming of a contingent Annuitant when a Non-qualified Annuity is held by a pension plan or a tax favored retirement plan, or held by a Custodial Account. In such a situation, the Annuity may no longer qualify for tax deferral where the Annuity continues after the death of the Annuitant. However, tax deferral should be provided instead by the pension plan, tax favored retirement plan, or Custodial Account. We may also allow the naming of a contingent annuitant when a Non-qualified Annuity is held by an entity owner when such Annuities do not qualify for tax deferral under the current tax law. This does not supersede any benefit language which may restrict the use of the contingent annuitant.

**Reporting and Withholding on Distributions**

Amounts distributed from an Annuity are subject to federal and state income tax reporting and withholding. In general, we will withhold federal income tax from the taxable portion of such distribution based on the type of distribution. In the case of an annuity payment, we apply default withholding under the applicable tax rules unless you designate a different withholding status. In the case of all other distributions, we will withhold at a 10% rate. You may generally elect a different tax withholding rate or elect not to have tax withheld from your payments. An election out of withholding must be made on forms that we provide. If you are a U.S. person (which includes a resident alien), and you request a payment be delivered outside the United States or do not provide a U.S. taxpayer identification number, we are required to withhold income tax.

State income tax withholding rules vary and we will withhold based on the rules of your state of residence. Special tax rules apply to withholding for nonresident aliens, and we generally withhold income tax for nonresident aliens at a 30% rate. A different withholding rate may be applicable to a nonresident alien based on the terms of an existing income tax treaty between the United States and the nonresident alien's country. Please refer to the discussion below regarding withholding rules for a Qualified Annuity.

Regardless of the amount withheld by us, you are liable for payment of income taxes (including any estimated taxes that may be due) on the taxable portion of distributions from the Annuity. You should consult with your tax advisor regarding the payment of the correct amount of these income taxes and potential liability if you fail to pay such taxes.

------

[Back to **Table of Contents**](#TOC_956)

**Entity Owners**

Where an Annuity is held by a non-natural person (e.g., a corporation, partnership), other than as an agent or nominee for a natural person (or in other limited circumstances), increases in the value of the Annuity over its cost basis will be subject to tax annually.

Where an Annuity is issued to a Charitable Remainder Trust (CRT), increases in the value of the Annuity over its cost basis will be subject to tax reporting annually. As there are charges for the optional living and death benefits described elsewhere in this prospectus, and such charges reduce the contract value of the Annuity, trustees of the CRT should discuss with their legal advisors whether election of such optional living or death benefits violates their fiduciary duty to the remainder beneficiary.

Where an Annuity is issued to a trust, and such trust is characterized as a grantor trust under the Code, such Annuity is generally not considered to be held by a non-natural person and will be subject to the tax reporting and withholding requirements generally applicable to a Non-qualified Annuity held by a natural person, provided that all grantors of the trust are natural persons. At this time, we will not issue an Annuity to grantor trusts with more than two grantors.

Where the Annuity is owned by a grantor trust, the Annuity must be distributed within five years after the date of the first grantor's death (or the Annuitant's death in certain instances) under Section 72(s) of the Code.

See the "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)" section for scenarios where a Death Benefit or Surrender Value is payable depending upon the underlying facts.

Trusts are required to complete and submit a Certificate of Entity form, and we will tax report based on the information provided on this form.

**Annuity Qualification**

*Diversification And Investor Control.* In order to qualify for the tax rules applicable to Annuities described above, the investment assets in the Non-qualified Annuity Variable Options must be diversified according to certain rules under the Code. Each Portfolio is required to diversify its investments each quarter so that no more than 55% of the value of its assets is represented by any one investment, no more than 70% is represented by any two investments, no more than 80% is represented by any three investments, and no more than 90% is represented by any four investments. Generally, securities of a single issuer are treated as one investment, and obligations of each U.S. Government agency and instrumentality (such as the Government National Mortgage Association) are treated as issued by separate issuers. In addition, any security issued, guaranteed or insured (to the extent so guaranteed or insured) by the U.S. or an instrumentality of the U.S. will be treated as a security issued by the U.S. Government or its instrumentality, where applicable. We believe the Portfolios underlying the Variable Options of the Annuity meet these diversification requirements.

An additional requirement for qualification for the tax treatment described above is that we, and not you as the Annuity Owner, must have sufficient control over the underlying assets to be treated as the owner of the underlying assets for tax purposes. The tax law limits the amount of control you may have over choosing investments for your Annuity. If this "investor control" rule is violated your Annuity assets will be considered owned directly by you and you lose the favorable tax treatment generally afforded to annuities.

While we also believe these investor control rules will be met, the Treasury Department may promulgate guidelines under which a variable annuity will not be treated as an annuity contract for tax purposes if persons with ownership rights have excessive control over the investments underlying such variable annuity contract. It is unclear whether such guidelines, if in fact promulgated, would have retroactive effect. It is also unclear what effect, if any, such guidelines might have on transfers between the Investment Options offered pursuant to this prospectus. We reserve the right to take any action, including modifications to your Annuity or the Investment Options, required to comply with such guidelines if promulgated. Any such changes will apply uniformly to affected Owners and will be made with such notice to affected Owners as is feasible under the circumstances.

**Required Distributions Upon Your Death for a Non-Qualified Annuity.**

Upon your death, certain distributions must be made under the Annuity. The required distributions depend on whether you die before you start taking annuity payments under the Annuity or after you start taking annuity payments under the Annuity. If you die on or after the Annuity Date, the remaining portion of the interest in the Annuity must be distributed at least as rapidly as under the method of distribution being used as of the date of death. If you die before the Annuity Date, the entire interest in the Annuity must be distributed within five years after the date of death, or as periodic payments over a period not extending beyond the life or life expectancy of the designated Beneficiary (provided such payments begin within one year of your death). If the Beneficiary does not begin installments within one year of the date of death, no partial withdrawals will be permitted thereafter, and we require that the Beneficiary take the Death Benefit as a lump sum within the five-year deadline. Your designated Beneficiary is the person to whom benefit rights under the Annuity pass by reason of death, and must be a natural person in order to elect a periodic payment option based on life expectancy or a period exceeding five years. Additionally, if the Annuity is payable to (or for the benefit of) your surviving spouse, that portion of the Annuity may be continued with your spouse as the Owner. For Non-qualified Annuities owned by a non-natural person, the required distribution rules generally apply upon the death of the Annuitant. This means, for example, that for an Annuity held by a non-natural person (such as a trust) for which there is named a co-annuitant, then such required distributions will be triggered by the death of the first co-annuitant to die.

*Changes To Your Annuity.* We reserve the right to make any changes we deem necessary to assure that your Annuity qualifies as an Annuity for tax purposes. Any such changes will apply to all Annuity Owners and you will be given notice to the extent feasible under the circumstances.

------

[Back to **Table of Contents**](#TOC_956)

**QUALIFIED ANNUITIES**

**In general, as used in this prospectus, a Qualified Annuity is an Annuity with applicable endorsements for a tax-favored plan or a** **Non-Qualified Annuity held by a tax-favored retirement plan.**

The following is a general discussion of the tax considerations for Qualified Annuities. This Annuity may or may not be available for all types of the tax-favored retirement plans discussed below. This discussion assumes that you have satisfied the eligibility requirements for any tax-favored retirement plan. Please consult your financial professional prior to purchase to confirm if this Annuity is available for a particular type of tax-favored retirement plan or whether we will accept the type of contribution you intend for this Annuity.

A Qualified Annuity may have been purchased for use in connection with:

• Individual
 retirement accounts and annuities (IRAs), including inherited IRAs (which we refer to as a Beneficiary IRA), which are subject to Sections
 408(a) and 408(b) of the Code;

• Roth
 IRAs, including inherited Roth IRAs (which we refer to as a Beneficiary Roth IRA) under Section 408A of the Code;

• A
 corporate Pension or Profit-sharing plan (subject to 401(a) of the Code);

• H.R.
 10 plans (also known as Keogh Plans, subject to 401(a) of the Code);

• Tax
 Sheltered Annuities (subject to 403(b) of the Code, also known as Tax Deferred Annuities or TDAs);

• Section
 457 plans (subject to 457 of the Code).

A Non-qualified Annuity may have been purchased by a 401(a) trust, a custodial IRA or a custodial Roth IRA account, or a Section 457 plan, which can hold other permissible assets. The terms and administration of the trust or custodial account or plan in accordance with the laws and regulations for 401(a) plans, IRAs or Roth IRAs, or a Section 457 plan, as applicable, are the responsibility of the applicable trustee or custodian.

You should be aware that tax favored plans such as IRAs generally provide income tax deferral regardless of whether they invest in Annuities. This means that when a tax favored plan invests in an Annuity, it generally does not result in any additional tax benefits (such as income tax deferral and income tax free transfers).

**Types of Tax-favored Plans**

***IRAs.*** The "IRA Disclosure Statement" and "Roth IRA Disclosure Statement" which accompany the prospectus contain information about eligibility, contribution limits, tax particulars, and other IRA information. In addition to this information (the material terms are summarized in this prospectus and in those Disclosure Statements), the IRS requires that you have a "Free Look" after making an initial contribution to the Annuity. During this time, you can cancel the Annuity by notifying us in writing, and we will refund the greater of all purchase payments under the Annuity or the Account Value, less any applicable federal and state income tax withholding.

*Contribution Limits/Rollovers.* Subject to the minimum purchase payment requirements of an Annuity, you may purchase an Annuity for an IRA in connection with a "rollover" of amounts from a qualified retirement plan, as a transfer from another IRA, by making a contribution consisting of your IRA contributions and catch-up contributions, if applicable, attributable to the prior year during the period from January 1 to April 15 (or the later applicable due date of your federal income tax return, without extension), or as a current year contribution. Contribution amounts are indexed for inflation. The IRS generally provides contribution limits for the subsequent year in the fourth quarter of the current year. The tax law also provides for a catch-up provision for individuals who are age 50 and above, allowing these individuals an additional $1,000 contribution each year. The $1,000 catch-up contribution for IRA owners age 50 or older is indexed for inflation starting in 2024 in accordance with the Consolidated Appropriations Act, 2023 (which includes SECURE 2.0 of 2022 ("SECURE 2.0"). You may be able to claim a deduction for your contributions depending on your modified adjusted gross income. Go to <u>www.irs.gov</u> for the limits for each year.

The "rollover" rules under the Code are fairly technical; however, an individual (or his or her surviving spouse) may generally "roll over" certain distributions from tax favored retirement plans (either directly or within 60 days from the date of these distributions) if he or she meets the requirements for distribution. Once you buy an Annuity, you can make regular IRA contributions under the Annuity (to the extent permitted by law and the terms of the Annuity). For IRA rollovers, an individual can only make an IRA to IRA rollover if the individual has not made a rollover involving any IRAs owned by the individual in the prior 12 months. An IRA transfer is a tax-free trustee-to-trustee "transfer" from one IRA account to another. IRA transfers are not subject to this 12-month rule. There is no age limitation with regard to contributions to a traditional IRA as long as the earned income requirements are met.

In some circumstances, non-spouse Beneficiaries may roll over to an IRA amounts due from qualified plans, 403(b) plans, and governmental 457(b) plans. However, the rollover rules applicable to non-spouse Beneficiaries under the Code are more restrictive than the rollover rules applicable to Owner/participants and spouse Beneficiaries. Generally, non-spouse Beneficiaries may roll over distributions from tax favored retirement plans only as a direct rollover. An inherited IRA must be directly rolled over from the employer plan or transferred from an IRA and must be titled in the name of the deceased (i.e., John Doe deceased for the benefit of Jane Doe). No additional contributions can be made to an inherited IRA. In this prospectus, an inherited IRA is also referred to as a Beneficiary Annuity.

*Required Provisions.* Annuities that are IRAs (or endorsements that are part of the contract) must contain certain provisions:

• You,
 as Owner of the Annuity, must be the "Annuitant" under the contract (except in certain cases involving the division of property
 under a decree of
 divorce);

• Your
 rights as Owner are non-forfeitable;

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• You
 cannot sell, assign or pledge the Annuity;

• The
 annual contribution you pay cannot be greater than the maximum amount allowed by law, including catch-up contributions if applicable
 (which does not include any rollover amounts or amounts transferred by trustee-to-trustee transfer);

• The
 date on which required minimum distributions must begin cannot be later than April 1 <sup>st</sup> of the calendar year after the calendar year you
 turn the applicable age (see the Required Minimum Distribution rules for more details); and

• Death
 and annuity payments must meet Required Minimum Distribution rules described below.

Usually, the full amount of any distribution from an IRA (including a distribution from this Annuity) which is not a transfer or rollover is taxable. As taxable income, these distributions are subject to the general income tax withholding rules described earlier regarding an Annuity in the Non-qualified Annuity section. In addition to this normal tax liability, you may also be liable for the following, depending on your actions:

• A
 10% early withdrawal additional tax described below;

• Liability
 for "prohibited transactions" if you, for example, borrow against the value of an IRA; or

• Failure
 to take a Required Minimum Distribution, also described below.

If you make any non-deductible contributions to your IRA, a portion of any subsequent distribution may be tax-free as a return of those contributions. You are required to keep track of this and determine the taxable and non-taxable portions. IRS rules require that we report the full amount of any distribution as taxable.

***Simplified Employee Pensions (SEP).*** SEPs are a variation on a standard IRA, and Annuities issued to a SEP must satisfy the same general requirements described under IRAs (above). There are, however, some differences:

• If
 you participate in a SEP, you generally do not include in income any employer contributions made to the SEP on your behalf up to the lesser
 of (a) the annual employer contribution limit as indexed for inflation, or (b) 25% of your taxable compensation paid by the contributing
 employer (not including the employer's SEP contribution as compensation for these purposes). However, for these purposes, compensation
 in excess of certain limits established by the IRS will not be considered. Go to <u>www.irs.gov</u> for the current year contribution and
 catch-up limits and compensation limit.

• SEPs
 must satisfy certain participation and nondiscrimination requirements not generally applicable to IRAs; and

• SEPs
 that contain a salary reduction or "SARSEP" provision prior to 1997 may permit salary deferrals from employee income with
 the employer making
 these contributions to the SEP. Contribution amounts are indexed for inflation. The IRS generally provides contribution limits
 for the subsequent year in the fourth quarter of the current year.  However, no new "salary reduction" or "SARSEPs"
 can be established
 after 1996. Individuals participating in a SARSEP who are age 50 or above by the end of the year are permitted to contribute an
 additional catch-up contribution amount. These amounts are indexed for inflation and may depend on the participant's age. Go to <u>www.irs.gov</u> for the current year contribution limit and catch-up contribution limit. Not all Annuities issued by us are available for SARSEPs.

• You
 will also be provided the same information, and have the same "Free Look" period, as you would have if you purchased the Annuity for a standard IRA.

• Roth
 contributions are permitted for SEP IRAs starting in 2023. The Company does not currently offer Roth contributions for SEP IRAs, but
 we reserve the right to offer this contribution type in the future.

***ROTH IRAs.*** The "Roth IRA Disclosure Statement" contains information about eligibility, contribution limits, tax particulars and other Roth IRA information. Like standard IRAs, income within a Roth IRA accumulates tax-free, and contributions are subject to specific limits. Roth IRAs have, however, the following differences:

• Contributions
 to a Roth IRA cannot be deducted from your gross income;

• "Qualified
 distributions" from a Roth IRA are excludable from gross income. A "qualified distribution" is a distribution that satisfies
 two requirements:
 (1) the distribution must be made (a) after the Owner of the IRA attains age 59½; (b) after the Owner's death; (c) due to the Owner's disability;
 or (d) for a qualified first time homebuyer distribution within the meaning of Section 72(t)(2)(F) of the Code; and (2) the distribution
 must be made in the year that is at least five tax years after the first year for which a contribution was made to any Roth IRA established
 for the Owner. Distributions from a Roth IRA that are not qualified distributions will be treated as made first from contributions and
 then from earnings and earnings will be taxed generally in the same manner as distributions from a traditional IRA.

• If
 eligible (including meeting income limitations and earnings requirements), you may make contributions to a Roth IRA during your lifetime,
 and distributions are not required during the owner's lifetime.

Subject to the minimum Purchase Payment requirements of an Annuity, you may purchase an Annuity for a Roth IRA in connection with a "rollover" of amounts of another traditional IRA, SEP, SIMPLE-IRA (subject to a timing restriction), employer sponsored retirement plan (under Sections 401(a) or 403(b) of the Code) or Roth IRA. You may also purchase an Annuity for a Roth IRA, if you meet certain income limitations, by making a contribution consisting of your Roth IRA contributions and catch-up contributions, if applicable, attributable to the prior year during the period from January 1 to April 15 (or the applicable due date of your federal income tax return, without extension), or as a current year contribution. The Code permits persons who receive certain qualifying distributions from such non-Roth IRAs, to directly rollover or make, within 60 days, a "rollover" of all or any part of the amount of such distribution to a Roth IRA which they establish (a "conversion"). The conversion of non-Roth accounts triggers current taxation (but is not subject to a 10% early distribution additional tax unless a distribution that is allocable to the rollover contribution is distributed within 5 years of the conversion).

------

[Back to **Table of Contents**](#TOC_956)

In addition, SECURE 2.0 amends the Code to allow for tax and penalty free rollovers from 529 accounts to Roth IRAs, under certain conditions. Starting in 2024, beneficiaries of 529 college savings accounts would be permitted to roll over up to $35,000 over the course of their lifetime from any 529 account in their name to their Roth IRA. These rollovers generally are also subject to Roth IRA annual contribution limits, and the 529 account must have been open for at least 15 years, among other requirements.

The Code also permits the recharacterization of current year contribution amounts from a traditional IRA into a Roth IRA, or from a Roth IRA to a traditional IRA. Recharacterization is accomplished through a trustee-to-trustee transfer of a contribution (or a portion of a contribution) plus earnings, between different types of IRAs. A properly recharacterized contribution is treated as a contribution made to the second IRA instead of the first IRA. Such recharacterization must be completed by the applicable tax return due date (with extensions). However, no recharacterizations of conversions can be made.

Once an Annuity has been purchased, regular Roth IRA contributions will be accepted to the extent permitted by law and the terms of the Annuity. In addition, an individual receiving an eligible rollover distribution from a designated Roth account under an employer plan may roll over the distribution to a Roth IRA even if the individual is not eligible to make regular contributions to a Roth IRA. Non-spouse Beneficiaries receiving a distribution from an employer sponsored retirement plan under Sections 401(a) or 403(b) of the Code can also directly roll over contributions to a Roth IRA. However, it is our understanding of the Code that non-spouse Beneficiaries cannot "rollover" benefits from a traditional IRA to a Roth IRA.

***TDAs.*** In general, you may own a Tax Deferred Annuity (also known as a TDA, Tax Sheltered Annuity (TSA), 403(b) plan or 403(b) Annuity) if you are an employee of a tax-exempt organization (as defined under Code Section 501(c)(3)) or a public educational organization, and you may make contributions to a TDA so long as your employer maintains such a plan and your rights to the Annuity are non-forfeitable. Contributions to a TDA, and any earnings, are not taxable until distribution. You may also make contributions to a TDA under a salary reduction agreement subject to specific limits. Individuals participating in a TDA who are age 50 or above by the end of the year will be permitted to contribute an additional amount. This amount is indexed for inflation. Go to <u>www.irs.gov</u> for the current year contribution limit and catch-up contribution limit. Further, you may roll over TDA amounts to another TDA or an IRA. You may also roll over TDA amounts to a qualified retirement plan, a SEP and a governmental 457(b) plan. An Annuity may generally only qualify as a TDA if distributions of salary deferrals (other than "grandfathered" amounts held as of December 31, 1988) may be made only on account of:

• Your
 attainment of age 59½;

• Your
 severance of employment;

• Your
 death;

• Your
 total and permanent disability; or

• Hardship

In any event, you must begin receiving distributions from your TDA by April 1<sup>st</sup> of the calendar year after the calendar year you turn the applicable age or retire, whichever is later. These distribution limits do not apply either to transfers or exchanges of investments under the Annuity, or to any "direct transfer" of your interest in the Annuity to another employer's TDA plan or mutual fund "custodial account" described under Code Section 403(b)(7). Employer contributions to TDAs are subject to the same general contribution, nondiscrimination, and minimum participation rules applicable to "qualified" retirement plans.

**Caution:** Under IRS regulations we can accept contributions, transfers and rollovers only if we have entered into an information-sharing agreement, or its functional equivalent, with the applicable employer or its agent. In addition, in order to comply with the regulations, we will only process certain transactions (e.g., transfers, withdrawals, hardship distributions and, if applicable, loans) with employer approval. This means that if you request one of these transactions we will not consider your request to be in Good Order, and will not therefore process the transaction, until we receive the employer's approval in written or electronic form.

**Late Rollover Self-Certification**

You may be able to apply a rollover contribution to your IRA or qualified retirement plan after the 60-day deadline through a self-certification procedure established by the IRS. Please consult your tax or legal advisor regarding your eligibility to use this self-certification procedure. As indicated in this IRS guidance, we, as a financial institution, are not required to accept your self-certification for waiver of the 60-day deadline.

**Required Minimum Distributions and Payment Options**

If you hold the Annuity under an IRA (or other tax-favored plan), Required Minimum Distribution rules must be satisfied. This means that generally payments must start by April 1 of the year after the year you reach the applicable age ("required beginning date") and must be made for each year thereafter. For a TDA or a 401(a) plan for which the participant is not a greater than 5% owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs and designated Roth accounts under employer sponsored plans are not subject to these rules during the Owner's lifetime.

------

[Back to **Table of Contents**](#TOC_956)

---

| | |
|:---|:---|
| **If you were born...** | **Your "applicable age" is...** |
|  Before July 1, 1949 | 70½ |
|  After June 30, 1949 and before 1951 | 72 |
|  After 1950 and before 1960 | 73 |
|  After 1959 | 75 |

---

The amount of the payment must at least equal the minimum required under the IRS rules. Several choices are available for calculating the minimum amount. More information on the mechanics of this calculation is available on request. Please contact us at a reasonable time before the Required Minimum Distribution deadline so that a timely distribution is made. Please note that there is a 25% excise tax (a 50% excise tax applied prior to the 2023 taxable year) on the amount of any required minimum distribution not made in a timely manner. The excise tax on failure is further reduced from 25% to 10% if corrected in a timely manner and certain other conditions are met in accordance with SECURE 2.0.

Required Minimum Distributions are calculated based on the sum of the Account Value and the actuarial present value of any additional living and death benefits from optional riders that you have purchased under the Annuity. As a result, the Required Minimum Distributions may be larger than if the calculation were based on the Account Value only, which may in turn result in an earlier (but not before the required beginning date) distribution of amounts under the Annuity and an increased amount of taxable income distributed to the Annuity Owner, and a reduction of payments under the living and death benefit optional riders.

You can use the Minimum Distribution option to satisfy the Required Minimum Distribution rules for an Annuity without either beginning annuity payments or surrendering the Annuity. Under this option, we will distribute to you the Required Minimum Distribution amount, less any other partial withdrawals that you made during the year. Such amount will be based on the value of the Annuity as of December 31 of the prior year, but is determined without regard to other tax favored retirement plans you may own. If a trustee-to-trustee transfer or direct rollover of the full contract value is requested when there is an active Required Minimum Distribution program running, the Required Minimum Distribution will be removed and sent to the Owner prior to the remaining funds being sent to the transfer institution.

Although the IRS rules determine the required amount to be distributed from your IRA each year, certain payment alternatives are still available to you. In accordance with SECURE 2.0, a new optional method for calculating your RMDs may be available if you have an IRA in an annuity payout (or partial annuity payout), and an IRA in the deferral stage. Please contact your tax advisor to determine if this calculation method is appropriate for you. In addition, if you own more than one IRA, you can choose to satisfy your minimum distribution requirement for each of your IRAs by withdrawing that amount from any of your non-Roth IRAs. If you inherit more than one IRA or more than one Roth IRA from the same Owner, similar rules apply. These rules may also apply to other types of tax favored retirement plans such as TDAs.

**Charitable IRA Distributions**

Certain qualified IRA distributions used for charitable purposes are eligible for an exclusion from gross income, up to $100,000 (indexed for inflation beginning after 2023), for otherwise taxable IRA distributions from a traditional or Roth IRA. A qualified charitable distribution is a distribution that is made (1) directly by the IRA trustee to certain qualified charitable organizations and (2) on or after the date the IRA owner attains age 70½. Distributions that are excluded from income under this provision are not taken into account in determining the individual's deductions, if any, for charitable contributions. The amount of your qualified charitable distributions that are excluded from income for a tax year is reduced (but not below zero) by the excess of: (1) the total amount of your IRA deductions allowed for all tax years ending on or after the date you attain age 70½, over (2) the total amount of reductions for all tax years preceding the current tax year. You should consult your tax advisor about whether a one-time distribution up to $50,000 (indexed for inflation beginning after 2023) that is made from your IRA to a "split-interest entity" can be excluded from your gross income.

The IRS has currently indicated that an IRA trustee is not responsible for determining whether a distribution to a charity is one that satisfies the requirements of the charitable giving incentive. Unless otherwise required in the future by the IRS, we will report the distribution as a normal IRA distribution on Form 1099-R. In those instances, individuals are responsible for reflecting the distributions as charitable IRA distributions on their personal tax returns. However, if we receive certification that the distribution satisfies the requirements, we will report the distribution as a charitable IRA distribution on Form 1099-R.

**Required Distributions Upon Your Death for a Qualified Annuity**

Upon your death under an IRA, Roth IRA, 403(b) or other employer sponsored plan, any remaining interest must be distributed in accordance with federal income tax requirements. For Owner and Beneficiary deaths prior to 2020, please consult your tax advisor regarding the applicable post-death distribution requirements.

The information provided below applies to Owner and Beneficiary deaths after 2019. In addition, if you are an employee under a governmental plan, such as a section 403(b) plan of a public school or a governmental 457(b) plan, this law applies if you die after 2021. In addition, if your plan is maintained pursuant to one or more collective bargaining agreements, this law generally applies if you die after 2021 (unless the collective bargaining agreements terminate earlier).

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• *Death before your required beginning date.* If you die before your required beginning date, and you have a designated beneficiary, any remaining
 interest must be distributed within 10 years after your death, unless the designated beneficiary is an "eligible designated beneficiary"
 ("EDB") or some other exception applies. A designated beneficiary is any individual designated as a beneficiary by the employee
 or IRA owner. An EDB is any designated beneficiary who is (1) your surviving spouse, (2) your minor child, (3) disabled, (4) chronically
 ill, or (5) an individual not more than 10 years younger than you. An individual's status as an EDB is generally determined on the
 date of your death. An EDB (other than a minor child) can generally stretch distributions over their life or life expectancy if payments begin by the end
 of the calendar year following the year of your death and continuing over the EDB's remaining life expectancy after the EDB's
 death. However, all amounts must be fully distributed by the end of the year containing the 10 <sup>th</sup> anniversary of the EDB's death. Special
 rules apply to minors and Beneficiaries that are not individuals. Additional special rules apply to surviving spouses, see "Spousal Continuation"
 below.

• *Death on or after your required beginning date.* In general, if you die on or after your required beginning date, and you have a designated beneficiary
 who is not an EDB, any remaining interest in your Qualified Annuity must continue to be distributed over the longer of your remaining
 life expectancy and your designated beneficiary's life expectancy (or more rapidly), but all amounts must be distributed within 10 years of your
 death. If your Beneficiary is an EDB (other than a minor child), distributions must continue over the longer of your remaining
 life expectancy and the EDB's life expectancy (or more rapidly), but all amounts must be distributed within 10 years of the EDB's
 death. Special rules apply to EDBs who are minors and Beneficiaries that are not individuals.

• *Annuity payments.* If
 you commence taking distributions in the form of an annuity that can continue after your death, such as in the form of a
 joint and survivor annuity or an annuity with a guaranteed period of more than 10 years, any distributions after your death that are scheduled
 to be made beyond the applicable distribution period imposed under the law might need to be commuted at the end of that period
 (or otherwise modified after your death if permitted under federal tax law and by us) in order to comply with the post-death distribution
 requirements.

• *Other rules.* The post-death
 distribution requirements do not apply if the employee or IRA owner elected annuity payments that comply with
 prior law commenced prior to December 20, 2019. Also, even if annuity payments have not commenced prior to December 20, 2019, the
 requirements generally do not apply to an immediate annuity contract purchased prior to that date, if you have made an irrevocable election
 before that date as to the method and amount of the annuity.

If your beneficiary is not an individual, such as a charity, your estate, or a trust, any remaining interest after your death generally must be distributed in accordance with the 5-year rule or the at-least-as-rapidly rule, as applicable (but not the lifetime payout rule). You may wish to consult a professional tax advisor about the federal income tax consequences of your beneficiary designations.

In addition, these post-death distribution requirements generally do not apply if the employee or IRA owner died prior to January 1, 2020. However, if the designated beneficiary of the deceased employee or IRA owner dies after January 1, 2020, and the designated beneficiary had elected the lifetime payout rule or was under the at-least-as rapidly rule, any remaining interest must be distributed within 10 years of the designated beneficiary's death. Hence, this 10-year rule will apply to (1) a contract issued prior to 2020 which continues to be held by a designated beneficiary of an employee or IRA owner who died prior to 2020, and (2) an inherited IRA issued after 2019 to the designated beneficiary of an employee or IRA owner who died prior to 2020.

• *Spousal continuation.* If your beneficiary is your spouse, such surviving spouse can delay the application of the post-death distribution requirements
 until after their death by transferring the remaining interest tax-free to their own IRA, or by electing to treat your IRA as their own
 IRA. However, in certain circumstances the surviving spouse may have to take "hypothetical RMDs" (i.e., catch-up amounts required in accordance with
 the regulations).

The post-death distribution requirements are complex in numerous respects. Treasury has issued final and proposed regulations that may impact these required minimum distribution requirements. We reserve the right to make changes in order to comply with the final and proposed regulations, or any regulations published in the future. Any such changes will apply uniformly to affected Owners or Beneficiaries and will be made with such notice to affected Owners or Beneficiaries as is feasible under the circumstances. In addition, the manner in which these requirements will apply will depend on your particular facts and circumstances. You may wish to consult a professional tax advisor for tax advice as to your particular situation.

Unless payments are being made in the form of an annuity, a Beneficiary has the flexibility to take out more each year than mandated under the required minimum distribution rules.

Note that in 2014, the U.S. Supreme Court ruled that Inherited IRAs, other than IRAs inherited by the owner's spouse, do not qualify as retirement assets for purposes of protection under the federal bankruptcy laws.

Until withdrawn, amounts in a Qualified Annuity continue to be tax deferred. Amounts withdrawn each year, including amounts that are required to be withdrawn under the required minimum distribution rules, are subject to tax. You may wish to consult a professional tax advisor for tax advice as to your particular situation.

For a Roth IRA, if death occurs before the entire interest is distributed, the death benefit must be distributed under the same rules applied to IRAs where death occurs before the required beginning date. Similar rules may apply to designated Roth accounts under an employer-sponsored retirement plan. Consult your plan sponsor and tax advisor for more information on designated Roth accounts.

------

[Back to **Table of Contents**](#TOC_956)

**10% Additional Tax for Early Withdrawals from a Qualified Annuity**

You may owe a 10% additional tax on the taxable part of distributions received from an IRA, SEP, Roth IRA, TDA or qualified retirement plan. Amounts are not subject to this additional tax if:

• the
 amount is paid on or after you reach age 59½ or die;

• the
 amount received is attributable to your becoming disabled; or

• generally
 the amount paid or received is in the form of substantially equal periodic payments (as defined in the Code) not less frequently than
 annually. (Please note that substantially equal periodic payments must continue until the later of reaching age 59½ or five years. Certain modification
 of payments or additional contributions to the Annuity during that time period will result in retroactive application of the
 10% additional tax.)

There are a number of other exceptions to this tax that may apply. In addition, distributions that satisfy certain exceptions to this tax may be repaid in certain circumstances. You should consult your tax advisor for further details.

**Withholding**

For 403(b) Tax Deferred annuities, we will withhold federal income tax at the rate of 20% for any eligible rollover distribution paid by us to or for a plan participant, unless such distribution is "directly" rolled over into another qualified plan, IRA (including the IRA variations described above), SEP, governmental 457(b) plan or TDA. An eligible rollover distribution is defined under the tax law as a distribution from an employer plan under 401(a), a TDA or a governmental 457(b) plan, excluding any distribution that is part of a series of substantially equal payments (at least annually) made over the life expectancy of the employee or the joint life expectancies of the employee and his designated Beneficiary, any distribution made for a specified period of 10 years or more, any distribution that is a required minimum distribution and any hardship distribution. Regulations also specify certain other items which are not considered eligible rollover distributions. We will not withhold for payments made from trustee owned Annuities or for payments under a 457 plan. For all other distributions, unless you elect otherwise, we will withhold federal income tax from the taxable portion of such distribution at an appropriate percentage. The rate of withholding on annuity payments where no mandatory withholding is required is determined on the basis of the withholding certificate that you file with us. If you do not file a certificate, we will automatically withhold federal taxes on the following basis:

• For
 any annuity payments not subject to mandatory withholding, you will have taxes withheld under the applicable default withholding rules;
 and

• For
 all other distributions, we will withhold at a 10% rate.

If no U.S. taxpayer identification number is provided, no election out of withholding will be allowed, and we will automatically withhold using the default withholding rules. In addition, if you are a U.S. person (which includes a resident alien), and you request a payment be delivered outside the U.S., we are required to withhold income tax.

We will provide you with forms and instructions concerning the right to elect that no amount be withheld from payments in the ordinary course. However, you should know that, in any event, you are liable for payment of federal income taxes (including any estimated tax liabilities) on the taxable portion of the distributions, and you should consult with your tax advisor to find out more information on your potential liability if you fail to pay such taxes. There may be additional state income tax withholding requirements.

Special tax rules apply to withholding for nonresident aliens, and we generally withhold income tax for nonresident aliens at a 30% rate. A different withholding rate may be applicable to a nonresident alien based on the terms of an existing income tax treaty between the United States and the nonresident alien's country.

**ERISA Requirements**

ERISA (the "Employee Retirement Income Security Act of 1974") and the Code prevent a fiduciary and other "parties in interest" with respect to a plan (and, for these purposes, an IRA would also constitute a "plan") from receiving any benefit from any party dealing with the plan, as a result of the sale of the Annuity. Administrative exemptions under ERISA generally permit the sale of insurance/annuity products to plans, provided that certain information is disclosed to the person purchasing the Annuity. This information has to do primarily with the fees, charges, discounts and other costs related to the Annuity, as well as any commissions paid to any agent selling the Annuity. Information about any applicable fees, charges, discounts, penalties or adjustments may be found in the applicable sections of this prospectus. Information about sales representatives and commissions may be found in the sections of this prospectus addressing distribution of the Annuities.

Other relevant information required by the exemptions is contained in the contract and accompanying documentation.

Please consult with your tax advisor if you have any questions about ERISA and these disclosure requirements.

**Spousal Consent Rules for Retirement Plans – Qualified Annuities**

If you are married at the time your payments commence, you may be required by federal law to choose an income option that provides survivor annuity income to your spouse, unless your spouse waives that right. Similarly, if you are married at the time of your death, federal law may require all or a portion of the Death Benefit to be paid to your spouse, even if you designated someone else as your Beneficiary. A brief explanation of the applicable rules follows. For more information, consult the terms of your retirement arrangement.

------

[Back to **Table of Contents**](#TOC_956)

*Defined Benefit Plans and Money Purchase Pension Plans.* If you are married at the time your payments commence, federal law requires that benefits be paid to you in the form of a "qualified joint and survivor annuity" (QJSA), unless you and your spouse waive that right, in writing. Generally, this means that you will receive a reduced payment during your life and, upon your death, your spouse will receive at least one-half of what you were receiving for life. You may elect to receive another income option if your spouse consents to the election and waives his or her right to receive the QJSA. If your spouse consents to the alternative form of payment, your spouse may not receive any benefits from the plan upon your death. Federal law also requires that the plan pay a Death Benefit to your spouse if you are married and die before you begin receiving your benefit. This benefit must be available in the form of an Annuity for your spouse's lifetime and is called a "qualified pre-retirement survivor annuity" (QPSA). If the plan pays Death Benefits to other Beneficiaries, you may elect to have a Beneficiary other than your spouse receive the Death Benefit, but only if your spouse consents to the election and waives his or her right to receive the QPSA. If your spouse consents to the alternate Beneficiary, your spouse will receive no benefits from the plan upon your death. Any QPSA waiver prior to your attaining age 35 will become null and void on the first day of the calendar year in which you attain age 35, if still employed.

*Defined Contribution Plans (including 401(k) Plans and ERISA 403(b) Annuities).* Spousal consent to a distribution is generally not required. Upon your death, your spouse will receive the entire Death Benefit, even if you designated someone else as your Beneficiary, unless your spouse consents in writing to waive this right. Also, if you are married and elect an Annuity as a periodic income option, federal law requires that you receive a QJSA (as described above), unless you and your spouse consent to waive this right.

*IRAs, non-ERISA 403(b) Annuities, and 457 Plans.* Spousal consent to a distribution usually is not required unless specifically required under the terms of the plan. Upon your death, any Death Benefit will be paid to your designated Beneficiary.

**ADDITIONAL CONSIDERATIONS**

**Reporting and Withholding for Escheated Amounts**

Revenue Rulings 2018-17 and 2020-24 provide that an amount transferred from an IRA or 401(a) qualified retirement plan to a state's unclaimed property fund is subject to federal income tax withholding at the time of transfer. The amount transferred is also subject to federal tax reporting. Consistent with these Rulings, we will withhold federal and state income taxes and report to the applicable Owner or Beneficiary as required by law when amounts are transferred to a state's unclaimed property fund. Non-qualified annuity contracts generally are subject to the same or similar federal income tax reporting and withholding requirements as IRAs and qualified retirement plans. As a result, we may determine in the future that we have an obligation to follow similar guidelines with respect to any amounts escheated from your Non-qualified Annuity.

**Gifts and Generation-skipping Transfers**

If you transfer your Annuity to another person for less than adequate consideration, there may be gift tax consequences in addition to income tax consequences. Also, if you transfer your Annuity to a person two or more generations younger than you (such as a grandchild or grandniece) or to a person that is more than 37½ years younger than you, there may be generation-skipping transfer tax consequences.

**Civil Unions and Domestic Partnerships**

U.S. Treasury Department regulations provide that for federal tax purposes, the term "spouse" does not include individuals (whether of the opposite sex or the same sex) who have entered into a registered domestic partnership, civil union, or other similar formal relationship that is not denominated as a marriage under the laws of the state where the relationship was entered into, regardless of domicile. As a result, if a Beneficiary of a deceased Owner and the Owner were parties to such a relationship, the Beneficiary will be required by federal tax law to take distributions from the Contract in the manner applicable to non-spouse Beneficiaries and will not be able to continue the Contract. Please consult with your tax or legal advisor before electing the Spousal Benefit for a civil union partner or domestic partner.

------

[Back to **Table of Contents**](#TOC_956)

**LEGAL PROCEEDINGS**

------

As of the date of this prospectus, neither the Company nor the Registered Separate Account or Prudential Annuities Distributors, Inc. is a party to any material legal proceedings outside of the ordinary routine litigation incidental to the business. Although the Company and its affiliates are involved in pending and threatened legal proceedings in the normal course of its business, we do not anticipate that the outcome of any such legal proceedings will have a material adverse effect on the Registered Separate Account, or the Company's ability to meet its obligations under the Annuity, or the ability of Prudential Annuities Distributors, Inc. to meet its obligations related to the Annuity.

------

[Back to **Table of Contents**](#TOC_956)

**FINANCIAL STATEMENTS**

------

The financial statements of the Registered Separate Account and Pruco Life are incorporated by reference in the Statement of Additional Information.

------

[Back to **Table of Contents**](#TOC_956)

**ADDITIONAL INFORMATION**

------

**HOW WILL I RECEIVE STATEMENTS AND REPORTS?**

We send any statements and reports required by applicable law or regulation to you at your last known address of record. You should therefore give us prompt notice of any address change. We reserve the right, to the extent permitted by law and subject to your prior consent, to provide any prospectus, prospectus supplements, confirmations, statements and reports required by applicable law or regulation to you at <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>. or any other electronic means. We send a confirmation statement to you each time a transaction is made affecting Account Value, such as transfers, exchanges or withdrawals. We also send quarterly statements detailing the activity affecting your Annuity during the calendar quarter. We may confirm regularly scheduled transactions, such as systematic withdrawals (including 72(t) payments and required minimum distributions), and bank drafting, in quarterly statements instead of confirming them immediately. You should review the information in these statements carefully. You may request additional reports. We reserve the right to charge up to $50 for each such additional report.

Any errors or corrections on transactions for your Annuity must be reported to us at our Service Center as soon as possible to assure proper accounting to your Annuity. For transactions that are confirmed immediately, we assume all transactions are accurate unless you notify us otherwise within 30 days from the date you receive the confirmation. For transactions that are first confirmed on the quarterly statement, we assume all transactions are accurate unless you notify us within 30 days from the date you receive the quarterly statement. All transactions confirmed immediately or by quarterly statement are deemed conclusive after the applicable 30-day period. We may also send an annual report and a semi-annual report containing applicable financial statements for the Registered Separate Account and the Portfolios, as of December 31 and June 30, respectively, to Owners or, with your prior consent, make such documents available electronically through our website or other electronic means.

**HOW TO CONTACT US**

Please communicate with us using the telephone number and addresses below for the purposes described. Failure to send mail to the proper address may result in a delay in our receiving and processing your request.

<u>Prudential's Annuities Service Center</u>

Call our Customer Service Team at 1-888-PRU-2888 during normal business hours.

<u>Internet</u>

Access information about your Annuity at: <u>www.prudential.com/annuities</u>

<u>Correspondence Sent by Regular Mail</u>

Prudential Annuities Service Center<br>P.O. Box 7960<br>Philadelphia, PA 19176

<u>Correspondence Sent by Overnight</u><sup>\*</sup><u>, Certified or Registered Mail</u>

Prudential Annuities Service Center<br>1600 Malone Street<br>Millville, NJ 08332

\*Please note that overnight correspondence sent through the United States Postal Service may be delivered to the P.O. Box listed above, which could delay receipt of your correspondence at our Service Center. Overnight mail sent through other methods (e.g., Federal Express, United Parcel Service) will be delivered to the address listed below.

Correspondence sent by regular mail to our Service Center should be sent to the address shown above. Your correspondence will be picked up at this address and then delivered to our Service Center. Your correspondence is not considered received by us until it is received at our Service Center. Where this prospectus refers to the day when we receive a Purchase Payment, request, election, notice, transfer or any other transaction request from you, we mean the day on which that item (or the last requirement needed for us to process that item) arrives in complete and proper form at our Service Center or via the appropriate telephone or fax number if the item is a type we accept by those means. There are two main exceptions: if the item arrives at our Service Center (1) on a day that is not a business day, or (2) after the close of a business day, then, in each case, we are deemed to have received that item on the next business day.

You can obtain account information by calling our automated response system and at <u>www.prudential.com/contact-us</u>, our website. Our Customer Service representatives are also available during business hours to provide you with information about your account. You can request certain transactions through our telephone voice response system, our website or through a customer service representative. You can provide authorization for a third party, including your attorney-in-fact acting pursuant to a power of attorney, to access your account information and perform certain transactions on your account. You will need to complete a form provided by us which identifies those transactions that you wish to authorize via telephonic and electronic

------

[Back to **Table of Contents**](#TOC_956)

means and whether you wish to authorize a third party to perform any such transactions. Please note that unless you tell us otherwise, we deem that all transactions that are directed by your financial professional with respect to your Annuity have been authorized by you. We require that you or your representative provide proper identification before performing transactions over the telephone or through our website. This may include a Personal Identification Number (PIN) that will be provided to you upon issue of your Annuity or you may establish or change your PIN by calling our automated response system and at <u>www.prudential.com/contact-us</u>. Any third party that you authorize to perform financial transactions on your account will be assigned a PIN for your account.

Transactions requested via telephone are recorded. To the extent permitted by law, we will not be responsible for any claims, loss, liability or expense in connection with a transaction requested by telephone or other electronic means if we acted on such transaction instructions after following reasonable procedures to identify those persons authorized to perform transactions on your Annuity using verification methods which may include a request for your Social Security number, PIN or other form of electronic identification. We may be liable for losses due to unauthorized or fraudulent instructions if we did not follow such procedures.

Pruco Life does not guarantee access to telephonic, facsimile, Internet or any other electronic information or that we will be able to accept transaction instructions via such means at all times. Nor, due to circumstances beyond our control, can we provide any assurances as to the delivery of transaction instructions submitted to us by regular and/or express mail. Regular and/or express mail (if operational) will be the only means by which we will accept transaction instructions when telephonic, facsimile, Internet or any other electronic means are unavailable or delayed. Pruco Life reserves the right to limit, restrict or terminate telephonic, facsimile, Internet or any other electronic transaction privileges at any time.

PRUDENTIAL, THE PRUDENTIAL LOGO AND THE ROCK DESIGN ARE TRADEMARKS OF PRUDENTIAL FINANCIAL, INC. AND ITS RELATED ENTITIES, REGISTERED IN MANY JURISDICTIONS WORLDWIDE. USED UNDER LICENSE.

PRUDENTIAL PREMIER RETIREMENT VARIABLE ANNUITY B SERIES, PRUDENTIAL PREMIER RETIREMENT VARIABLE ANNUITY C SERIES, PRUDENTIAL PREMIER RETIREMENT VARIABLE ANNUITY L SERIES, PRUDENTIAL PREMIER RETIREMENT VARIABLE ANNUITY X SERIES, GRO PLUS II, HD GRO II, HIGHEST DAILY, HIGHEST DAILY LIFETIME, DAILY LIFETIME INCOME BENEFIT, CUSTOM PORTFOLIO, AND AST ARE SERVICE MARKS OR REGISTERED TRADEMARKS OF THE PRUDENTIAL INSURANCE COMPANY OF AMERICA AND ARE USED UNDER LICENSE BY ITS AFFILIATES.

------

[Back to **Table of Contents**](#TOC_956)

**APPENDIX A – INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT**

------

Certain Investment Options may not be available through certain financial intermediaries. **See** [**<u>Appendix J</u>**](#chapter_27-sect1_1_956)**, "Financial Intermediary Variations" and** **the** [**<u>Cover Page</u>**](#chapter_1-sect1_1_956) **for additional information**.

**Variable Options**

The following is the list of Portfolios available under the Contract. More information about the Portfolios is available in the prospectuses for the Portfolios, which may be amended from time to time and can be found online at <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>. You can also request this information at no cost by calling 1-800-346-3778 or by sending an email to service@prudential.com. Depending on the optional benefits you choose, you may not be able to invest in certain Portfolio Companies.

The current expenses and performance information below reflects fee and expenses of the Portfolio, but do not reflect the other fees and expenses that your Contract may charge. Expenses would be higher, and performance would be lower if these other charges were included. The Portfolio's past performance is not necessarily an indication of future performance.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund Type** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Allocation<br> AST Aggressive Asset Allocation Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 0.86% | 16.17% | 8.81% | 9.59% |
|  Allocation<br> AST Balanced Asset Allocation Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 0.87% | 14.35% | 6.96% | 8.05% |
|  Fixed Income<br> AST Bond Portfolio 2026<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 5.19% | 0.02% | 2.35% |
|  Fixed Income<br> AST Bond Portfolio 2027<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 5.99% | -0.67% | N/A |
|  Fixed Income<br> AST Bond Portfolio 2028<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 7.02% | -0.99% | N/A |
|  Fixed Income<br> AST Bond Portfolio 2029<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 7.78% | -1.51% | N/A |
|  Fixed Income<br> AST Bond Portfolio 2030<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 8.04% | -1.80% | N/A |
|  Fixed Income<br> AST Bond Portfolio 2031<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 8.43% | -2.39% | N/A |
|  Fixed Income<br> AST Bond Portfolio 2032<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 8.73% | N/A | N/A |

---

------

[Back to **Table of Contents**](#TOC_956)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund Type** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Fixed Income<br> AST Bond Portfolio 2033<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 8.94% | N/A | N/A |
|  Fixed Income<br> AST Bond Portfolio 2034<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 9.10% | N/A | N/A |
|  Fixed Income<br> AST Bond Portfolio 2035<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | 9.21% | N/A | N/A |
|  Fixed Income<br> AST Bond Portfolio 2036<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | N/A | N/A | N/A |
|  Fixed Income<br> AST Bond Portfolio 2037<sup>1,</sup><sup>2,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.96% | N/A | N/A | N/A |
|  Fixed Income<br> AST Core Fixed Income Portfolio<sup>1</sup><br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Limited*<br>*Wellington Management Company LLP* | 0.68% | 7.15% | -1.10% | 2.30% |
|  Fixed Income<br> AST Government Money Market Portfolio<sup>1</sup><br>*PGIM Fixed Income* | 0.58% | 3.78% | 2.86% | 1.78% |
|  Equity<br> AST International Equity Portfolio<sup>1</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*Massachusetts Financial Services Company*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 1.02% | 32.84% | 5.76% | 10.00% |
|  Fixed Income<br> AST Investment Grade Bond Portfolio<sup>1,</sup><sup>3,</sup><sup>♦</sup><br>*PGIM Fixed Income*<br>*PGIM Limited* | 0.69% | 8.57% | -0.12% | 3.39% |
|  Allocation<br> AST J.P. Morgan Aggressive Multi-Asset Portfolio<sup>1,</sup><sup>♦,</sup><sup>‡</sup><br>*J.P. Morgan Investment Management Inc.* | 0.96% | 14.03% | 7.43% | 9.06% |
|  Allocation<br> AST J.P. Morgan Conservative Multi-Asset Portfolio<sup>1,</sup><sup>♦</sup><br>*J.P. Morgan Investment Management Inc.* | 0.92% | 10.37% | 3.31% | 5.19% |
|  Allocation<br> AST J.P. Morgan Moderate Multi-Asset Portfolio<sup>1,</sup><sup>♦</sup><br>*J.P. Morgan Investment Management Inc.* | 0.97% | 12.53% | 5.61% | 7.30% |
|  Equity<br> AST Large-Cap Equity Portfolio<sup>1</sup><br>*ClearBridge Investments, LLC*<br>*Dimensional Fund Advisors LP*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Quantitative Solutions LLC* | 0.84% | 14.88% | 13.25% | 12.47% |

---

------

[Back to **Table of Contents**](#TOC_956)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund Type** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Equity<br> AST Large-Cap Growth Portfolio<sup>1</sup><br>*Clearbridge Investments, LLC*<br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*T. Rowe Price Associates, Inc.*<br>*Putnam Investment Management LLC* | 0.87% | 17.06% | 11.35% | 16.27% |
|  Equity<br> AST Large-Cap Value Portfolio<sup>1</sup><br>*ClearBridge Investments, LLC*<br>*Dimensional Fund Advisors LP*<br>*Hotchkis and Wiley Capital Management, LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*Putnam Investment Management LLC* | 0.81% | 16.05% | 12.97% | 11.35% |
|  Allocation<br> AST Multi-Asset Diversified Plus Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*PGIM Real Estate*<br>*Putnam Investment Management LLC* | 1.13% | 13.55% | 5.58% | 5.73% |
|  Allocation<br> AST Multi-Asset Diversified Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*PGIM Real Estate*<br>*Putnam Investment Management LLC* | 0.90% | 15.55% | 6.86% | 8.28% |
|  Allocation<br> AST PGIM Aggressive Multi-Asset Portfolio<sup>1</sup><br>*Jennison Associates LLC*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*PGIM Real Estate* | 0.90% | 16.00% | 8.22% | 8.26% |
|  Allocation<br> AST Preservation Asset Allocation Portfolio<sup>1,</sup><sup>♦</sup><br>*Jennison Associates LLC*<br>*J.P. Morgan Investment Management Inc.*<br>*PGIM Fixed Income*<br>*PGIM Quantitative Solutions LLC*<br>*Putnam Investment Management LLC* | 0.89% | 11.33% | 3.76% | 5.45% |
|  Allocation<br> AST Quantitative Modeling Portfolio<sup>1,</sup><sup>♦</sup><br>*PGIM Quantitative Solutions LLC*<br>*PGIM Fixed Income*<br>*PGIM Limited*<br>*Jennison Associates LLC* | 1.06% | 14.76% | 7.62% | 8.65% |
|  Equity<br> AST Small-Cap Equity Portfolio<sup>1</sup><br>*Boston Partners Global Investors, Inc.*<br>*Dimensional Fund Advisors LP*<br>*Driehaus Capital Management LLC*<br>*Hotchkis and Wiley Capital Management, LLC*<br>*TimesSquare Capital Management, LLC* | 1.01% | 7.41% | 1.81% | 10.39% |

---

------

[Back to **Table of Contents**](#TOC_956)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund Type** | **Portfolio Company and Advisor/Subadvisor** | **Current**<br>**Expenses** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** | **Average Annual Total Returns**<br>**(as of 12/31/2025)** |
| **Fund Type** | **Portfolio Company and Advisor/Subadvisor** | **Current**<br>**Expenses** | **1 Year** | **5 Year** | **10 Year** |
|  Equity | PSF Small-Cap Stock Index Portfolio - Class I<br>*PGIM Quantitative Solutions LLC* | 0.38% | 5.69% | 6.97% | 9.52% |
|  Equity | PSF Stock Index Portfolio - Class I<br>*PGIM Quantitative Solutions LLC* | 0.28% | 17.56% | 14.09% | 14.51% |

---

**The additional information below may be applicable to the Portfolios listed in the above table.**

PGIM Fixed Income is a business unit of PGIM, Inc.

PGIM Investments LLC manages each of the Portfolios of The Prudential Series Fund (PSF).

PGIM Investments LLC manages each of the Portfolios of the Advanced Series Trust (AST). AST Investment Services, Inc. serves as co-manager, along with PGIM Investments LLC, to many of the Portfolios of AST.

PGIM Real Estate is a business unit of PGIM, Inc.

1. **These Portfolios are also offered in other variable annuity contracts that utilize a predetermined mathematical formula to manage the guarantees offered in connection with** **optional benefits.** 

Those other variable annuity contracts offer certain optional living benefits that utilize a predetermined mathematical formula (the "formula") to manage the guarantees offered in connection with those optional benefits. The formula monitors each contract Owner's Account Value daily and, if necessary, will systematically transfer amounts among investment options. The formula transfers funds between the Variable Options for those variable annuity contracts and an AST Bond Portfolio Variable Option or a fixed account (those AST Bond Portfolios or a fixed account may not be available in connection with the annuity contracts offered through this prospectus). **You should be aware that the operation of the formula in those other variable annuity** **contracts may result in large-scale asset flows into and out of the underlying Portfolios that are available with your contract. These asset flows could adversely impact the** **underlying Portfolios, including their risk profile, expenses and performance**. Because transfers between the Variable Options and the AST Bond Variable Option or a fixed account can be frequent and the amount transferred can vary from day to day, any of the underlying Portfolios could experience the following effects, among others:

(a) a
 Portfolio's investment performance could be adversely affected by requiring a subadvisor to purchase and sell securities at inopportune
 times or by otherwise limiting the subadvisor's
 ability to fully implement the Portfolio's investment strategy;

(b) the
 subadvisor may be required to hold a larger portion of assets in highly liquid securities than it otherwise would hold, which could adversely
 affect performance if the highly
 liquid securities underperform other securities (e.g., equities) that otherwise would have been held; and

(c) a Portfolio may experience higher turnover and greater negative asset flows than it would have experienced without the formula,
 which could result in higher operating expense
 ratios and higher transaction costs for the Portfolio compared to other similar funds.

The efficient operation of the asset flows among Portfolios triggered by the formula depends on active and liquid markets. If market liquidity is strained, the asset flows may not operate as intended. For example, it is possible that illiquid markets or other market stress could cause delays in the transfer of cash from one Portfolio to another Portfolio, which in turn could adversely impact performance.

Before you allocate to the Variable Option with the AST Portfolios listed above, you should consider the potential effects on the Portfolios that are the result of the operation of the formula in the variable annuity contracts that are unrelated to your Variable Annuity. Please work with your financial professional to determine which Portfolios are appropriate for your needs.

2. Please
 note that you may not allocate Purchase Payments to the target date Bond Portfolios (e.g., AST Bond Portfolio 2036).

3. The
 AST Investment Grade Bond Variable Option is not available for allocation of Purchase Payments or contract Owner transfers.

♦ **This information includes annual expenses that reflect temporary or other fee reductions or waivers. Please see the Portfolio prospectus for additional information.** 

‡ The
 Portfolio has certain restrictions regarding availability for investment by Contract Owners as listed below.

**<u>AST J.P. Morgan Aggressive Multi-Asset Portfolio</u>**<br>This Portfolio is not available with the X Series product.

------

[Back to **Table of Contents**](#TOC_956)

**Fixed Options**

The following is a list of Fixed Options currently available under the Contract. We may change the features of the Fixed Options listed below, offer new Fixed Options, and terminate existing Fixed Options. We will provide you with written notice before doing so. For more information about the Fixed Options, see "Description of Insurance Company, Registered Separate Account, and Investment Options" in this prospectus.

**Note: If amounts are withdrawn from Market Value Adjustment options before the end of its term, we will apply a Contract Adjustment. This** **may result in a significant reduction in your Contract value. For more information about Market Value Adjustment options, please refer to the** **"Charges and Adjustments" section of this prospectus.**

---

| | | |
|:---|:---|:---|
| **Name** | **Term** | **Minimum Guaranteed Interest Rate\*** |
| DCA Market Value Adjustment Option | 6 Month | 1% |
| DCA Market Value Adjustment Option | 12 Month | 1% |
| Long-Term MVA Option | 3 Year | 1% |
| Long-Term MVA Option | 5 Year | 1% |
| Long-Term MVA Option | 7 Year | 1% |
| Long-Term MVA Option | 10 Year | 1% |

---

\*The rate shown was the last Minimum Guaranteed Interest Rate issued before the product closed to new customers. Your Minimum Guaranteed Interest Rate is the amount shown on your Contract and can vary by state. Please consult with your representative for availability and current rates.

**LIMITATIONS WITH OPTIONAL BENEFITS**

As a condition to your electing any optional benefits, we limit the Investment Options to which you may allocate your Account Value. Broadly speaking, we offer two groups of "Permitted Variable Options". Under the first group (Group I), your allowable Investment Options are more limited, but you are not subject to mandatory quarterly rebalancing. We call the second group (Group II) our "Custom Portfolios Program." The Custom Portfolios Program offers a larger menu of Portfolios, but you are subject to certain other restrictions. Specifically:

• you
 must allocate at least 20% of your Account Value to certain fixed income Portfolios (currently, the AST Core Fixed Income Portfolio); and

• you
 may allocate up to 80% in the Portfolios listed in the table below; and

• on
 each benefit quarter (or the next Valuation Day, if the quarter-end is not a Valuation Day), we will automatically re-balance your Variable Options used with
 this Program, so that the percentages devoted to each Portfolio remain the same as those in effect on the immediately preceding
 quarter-end, subject to the predetermined mathematical formula inherent in the benefit. Note that on the first quarter-end following
 your participation in the Custom Portfolios Program, we will re-balance your Variable Options so that the percentages devoted to each
 Portfolio remain the same as those in effect when you began the Custom Portfolios Program (subject to the predetermined mathematical
 formula inherent in the benefit); and

• between
 quarter-ends, you may re-allocate your Account Value among the Investment Options permitted within this category. If you reallocate,
 the next quarterly rebalancing will restore the percentages to those of your most recent reallocation; and

• if
 you are already participating in the Custom Portfolios Program and add a new benefit that also participates in this program, your rebalancing
 date will continue to be based upon the quarterly anniversary of your initial benefit election.

While those who do not participate in any optional benefit generally may invest in any of the Investment Options described in the prospectus, only those who participate in the optional benefits listed in Group II below may participate in the Custom Portfolios Program. Please note that the Custom Portfolios Program is not available with any of the Highest Daily Lifetime Income v2.1 and 2.0 benefits. If you currently have an optional death benefit that allows you to participate in the Custom Portfolios Program and wish to elect a Highest Daily Lifetime Income v2.1 benefit, you may not continue to invest under the Custom Portfolios Program. Instead, you will have to allocate your Account Value to the Investment Options permitted for the Highest Daily Lifetime Income v2.1 benefit at the time you elect it. If you participate in the Custom Portfolios Program, you may not participate in other Automatic Rebalancing Programs. **We may modify or terminate the Custom Portfolios Program at any time. Any such modification or termination will (i) be** **implemented only after we have notified you in advance, (ii) not affect the guarantees you had accrued under the optional benefit or your** **ability to continue to participate in those optional benefits, and (iii) not require you to transfer Account Value out of any Portfolio in which you** **participated immediately prior to the modification or termination.** If you are not participating in the Custom Portfolios Program at the time of any modification or termination, or if you voluntarily transfer your Account Value out of the Custom Portfolios Program after any modification or termination, we may restrict your further eligibility to participate in the Custom Portfolios Program.

In the following tables, we set forth the optional benefits that you may have if you also participate in the Group I or Group II programs, respectively. Please note that the DCA Market Value Adjustment Options described in this section are also available if you elect an optional benefit.

------

[Back to **Table of Contents**](#TOC_956)

**Group I: Allowable Benefit Allocations**

---

| | |
|:---|:---|
|  Highest Daily Lifetime Income v2.1<br>Spousal Highest Daily Lifetime Income v2.1<br>Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit<br>Spousal Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit<br>Highest Daily Lifetime Income 2.0<br>Highest Daily Lifetime Income 2.0 with Lifetime Income Accelerator<br>Spousal Highest Daily Lifetime Income 2.0<br>Highest Daily Lifetime Income 2.0 with Highest Daily Death Benefit<br>Spousal Highest Daily Lifetime Income 2.0 with Highest Daily Death Benefit<br>Highest Daily Lifetime Income<br>Highest Daily Lifetime Income with Lifetime Income Accelerator<br>Spousal Highest Daily Lifetime Income<br>Highest Daily Lifetime 6 Plus<br>Highest Daily Lifetime 6 Plus with LIA<br>Spousal Highest Daily Lifetime 6 Plus<br>GRO Plus II<br>Highest Daily GRO II<br>Highest Anniversary Value Death Benefit<br>Combination 5% Roll-Up and HAV Death Benefit | AST Aggressive Asset Allocation Portfolio<br>AST Balanced Asset Allocation Portfolio<br>AST J.P. Morgan Conservative Multi-Asset Portfolio<br>AST J.P. Morgan Moderate Multi-Asset Portfolio<br>AST Multi-Asset Diversified Plus Portfolio<br>AST Multi-Asset Diversified Portfolio<br>AST PGIM Aggressive Multi-Asset Portfolio<br>AST Preservation Asset Allocation Portfolio |

---

**Group II: Custom Portfolios Program**

---

| | |
|:---|:---|
|  Highest Daily Lifetime Income<br>Highest Daily Lifetime Income with Lifetime Income Accelerator<br>Spousal Highest Daily Lifetime Income<br>Highest Daily Lifetime 6 Plus<br>Highest Daily Lifetime 6 Plus with LIA<br>Spousal Highest Daily Lifetime 6 Plus<br>GRO Plus II<br>Highest Daily GRO II<br>Highest Anniversary Value Death Benefit<br>Combination 5% Roll-Up and HAV Death Benefit | AST Aggressive Asset Allocation Portfolio<br>AST Balanced Asset Allocation Portfolio<br>AST Core Fixed Income Portfolio<br>AST Government Money Market Portfolio<br>AST International Equity Portfolio<br>AST J.P. Morgan Conservative Multi-Asset Portfolio<br>AST J.P. Morgan Moderate Multi-Asset Portfolio<br>AST Large-Cap Equity Portfolio<br>AST Large-Cap Growth Portfolio<br>AST Large-Cap Value Portfolio<br>AST Multi-Asset Diversified Plus Portfolio<br>AST Multi-Asset Diversified Portfolio<br>AST PGIM Aggressive Multi-Asset Portfolio<br>AST Preservation Asset Allocation Portfolio<br>AST Small-Cap Equity Portfolio |

---

------

[Back to **Table of Contents**](#TOC_956)

**APPENDIX B – SPECIAL CONTRACT PROVISIONS FOR ANNUITIES ISSUED IN CERTAIN STATES** 

------

Certain features of your Annuity may be different than the features described earlier in this prospectus, if your Annuity is issued in certain states described below. Further variations may arise in connection with additional state reviews.

---

| | |
|:---|:---|
|  **Jurisdiction** | **Special Provisions** |
|  California | Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator is not available. Highest Daily Lifetime Income with Lifetime Income Accelerator is not available. Highest Daily Lifetime Income 2.0 with Lifetime Income Accelerator is not available. Medically-Related Surrender is not available. For the California annuity forms, "Contingent Deferred Sales Charges" are referred to as "surrender charges". |
|  Connecticut | Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator is not available. Highest Daily Lifetime Income with Lifetime Income Accelerator is not available. Highest Daily Lifetime Income 2.0 with Lifetime Income Accelerator is not available. Different CDSC schedule for X Series. No recapture of Purchase Credits upon death. For Annuities purchased on or after August 20, 2012, the Liquidity Factor used in the Market Value Adjustment and DCA formulas equals zero (0). The CDSC Schedule for X Series Annuities in Connecticut is as follows: |

---

---

| | |
|:---|:---|
|  **Age of Purchase Payment being Withdrawn** | **Percentage Applied Against**<br>**Purchase Payment being**<br>**Withdrawn** |
| &nbsp;&nbsp;&nbsp;&nbsp; Less than one year old | 9.0% |
| &nbsp;&nbsp;&nbsp;&nbsp; 1 year old or older, but not yet 2 years old | 8.50% |
| &nbsp;&nbsp;&nbsp;&nbsp; 2 years old or older, but not yet 3 years old | 8.0% |
| &nbsp;&nbsp;&nbsp;&nbsp; 3 years old or older, but not yet 4 years old | 8.0% |
| &nbsp;&nbsp;&nbsp;&nbsp; 4 years old or older, but not yet 5 years old | 7.75% |
| &nbsp;&nbsp;&nbsp;&nbsp; 5 years old or older, but not yet 6 years old | 7.75% |
| &nbsp;&nbsp;&nbsp;&nbsp; 6 years old or older, but not yet 7 years old | 5.0% |
| &nbsp;&nbsp;&nbsp;&nbsp; 7 years old or older, but not yet 8 years old | 4.0% |
| &nbsp;&nbsp;&nbsp;&nbsp; 8 years old or older, but not yet 9 years old | 2.5% |
| &nbsp;&nbsp;&nbsp;&nbsp; 9 or more years old | 0.0% |

---

---

| | |
|:---|:---|
|  Florida | One year waiting period for Annuitization. With respect to those who are 65 years or older on the date of purchase, in no event will the Contingent Deferred Sales Charge exceed 10% in accordance with Florida law. |
|  Illinois | 6 and 12 Month DCA Options are not available. Market Value Adjustment Options are not available. |
|  Iowa | 6 and 12 Month DCA Options are not available. Market Value Adjustment Options are not available. |
|  Massachusetts | The annuity rates we use to calculate annuity payments are available only on a gender-neutral basis under any Annuity Option or any lifetime withdrawal option benefit. Medically-Related Surrenders are not available. |
|  Montana | The annuity rates we use to calculate annuity payments are available only on a gender-neutral basis under any Annuity Option or any lifetime withdrawal option benefit. |
|  Oregon | 6 and 12 Month DCA Options are not available. Market Value Adjustment Options are not available. |
|  South Dakota | Highest Daily Lifetime Income 2.0 with Lifetime Income Accelerator is not available. |
|  Texas | No Market Value Adjustment Options are available under the X Series Annuity. The Beneficiary Annuity is not available. |
|  Virginia | Highest Daily Lifetime Income 2.0 with Lifetime Income Accelerator is not available. |
|  Washington | Combination 5% Roll-up and Highest Anniversary Value Death Benefit is not available. Highest Daily Lifetime 6 Plus with Lifetime Income Accelerator is not available. Highest Daily Lifetime Income with Lifetime Income Accelerator is not available. Highest Daily Lifetime Income 2.0 with Lifetime Income Accelerator is not available. |

---

------

[Back to **Table of Contents**](#TOC_956)

**APPENDIX C – HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT, HIGHEST DAILY**<br>**LIFETIME 6 PLUS INCOME BENEFIT WITH LIFETIME INCOME ACCELERATOR, AND**<br>**SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT – NO LONGER AVAILABLE**<br>**FOR NEW ELECTIONS**

------

These benefits were offered March 15, 2010 to January 23, 2011.

Except for Annuities that were issued in Oregon, effective September 14, 2012, we are no longer accepting additional Purchase Payments for<br>Annuities that have these benefits.

***HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT (HD 6 PLUS)***

Highest Daily Lifetime 6 Plus Income Benefit (HD 6 Plus) is a lifetime guaranteed minimum withdrawal benefit, under which, subject to the terms of the benefit, we guarantee your ability to take a certain annual withdrawal amount for life. Highest Daily Lifetime 6 Plus is no longer available.

If you have elected this benefit, the benefit guarantees until the death of the single designated life (the Annuitant) the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Unadjusted Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the rest of your life provided that you do not take withdrawals of Excess Income that result in your Unadjusted Account Value being reduced to zero. We also permit you to designate the first withdrawal from your Annuity as a one-time "Non-Lifetime Withdrawal". You may wish to take a Non-Lifetime Withdrawal if you have an immediate need for access to your Account Value but do not wish to begin lifetime payments under the optional living benefit. All other partial withdrawals from your Annuity are considered a "Lifetime Withdrawal" under the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Unadjusted Account Value is reduced to zero (for any reason other than due to partial withdrawals of Excess Income). Highest Daily Lifetime 6 Plus may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You are not required to take withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. An integral component of Highest Daily Lifetime 6 Plus is the predetermined mathematical formula we employ that may periodically transfer your Unadjusted Account Value to and from the AST Investment Grade Bond Portfolio. See the section below entitled "How Highest Daily Lifetime 6 Plus Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio."

The income benefit under Highest Daily Lifetime 6 Plus currently is based on a single "designated life" who is at least 45 years old on the benefit effective date. The Highest Daily Lifetime 6 Plus Benefit is not available if you elect any other optional living benefit, although you may elect any optional death benefit. As long as your Highest Daily Lifetime 6 Plus Benefit is in effect, you must allocate your Unadjusted Account Value in accordance with the Permitted Variable Options and other Investment Option(s) available with this benefit. **For a more detailed description of the permitted Investment** **Options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956)**.**

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Unadjusted Account Value falls to zero,** **if any withdrawal is a withdrawal of Excess Income (as described below) and brings your Unadjusted Account Value to zero, your Annual** **Income Amount also would fall to zero, and the benefit and the Annuity then would terminate. In that scenario, no further amount would be** **payable under the Highest Daily Lifetime 6 Plus benefit. As to the impact of such a scenario on any other optional benefit you may have,** **please see the applicable section in this prospectus.**

You may also participate in the 6 or 12 Month DCA Program if you elect Highest Daily Lifetime 6 Plus, subject to the 6 or 12 Month DCA Program's rules. See the section of this prospectus entitled "[<u>Transfers and Rebalancing Programs - 6 or 12 Month Dollar Cost Averaging Program</u>](#chapter_9-sect1_3_956)" for details. No Long-Term Market Value Adjustment Option is permitted if you elect any optional benefit.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. The Protected Withdrawal Value is separate from your Unadjusted Account Value and not available as cash or a lump sum withdrawal. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Unadjusted Account Value. On each Valuation Day thereafter, until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraphs.

------

[Back to **Table of Contents**](#TOC_956)

The "Periodic Value" is initially equal to the Unadjusted Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. The Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

(1) the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 6% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment (including any associated Purchase Credits) made on the Current Valuation Day; and

(2) the
 Unadjusted Account Value on the current Valuation Day.

If you have not made a Lifetime Withdrawal on or before the 10<sup>th</sup> or 20<sup>th</sup> benefit anniversary, your Periodic Value on the 10<sup>th</sup> or 20<sup>th</sup> benefit anniversary is equal to the greater of:

(1) the
 Periodic Value described above, or

(2) the
 sum of (a), (b) and (c) below proportionally reduced for any Non-Lifetime Withdrawals:

(a) 200% (on the 10<sup>th</sup> anniversary) or 400% (on the 20<sup>th</sup> anniversary) of the Unadjusted Account Value on the effective date of the benefit including any Purchase Payments (including any associated Purchase Credits) made on that day;

(b) 200% (on the 10<sup>th</sup> anniversary) or 400% (on the 20<sup>th</sup> anniversary) of all Purchase Payments (including any associated Purchase Credits) made within one year following the effective date of the benefit; and

(c) all Purchase Payments (including any associated Purchase Credits) made after one year following the effective date of the benefit.

In the rider for this benefit, we use slightly different terms for the calculation described. We use the term "Guaranteed Base Value" to refer to the Unadjusted Account Value on the effective date of the benefit, plus the amount of any "adjusted" Purchase Payments made within one year after the effective date of the benefit. "Adjusted" Purchase Payments means Purchase Payments we receive, increased by any Purchase Credits applied to your Account Value in relation to Purchase Payments, and decreased by any fees or tax charges deducted from such Purchase Payments upon allocation to the Annuity.

This means that: if you do not take a Lifetime Withdrawal on or before the 10<sup>th</sup> benefit anniversary, your Protected Withdrawal Value on the 10<sup>th</sup> benefit anniversary will be at least double (200%) your initial Protected Withdrawal Value established on the date of benefit election; or if you do not take a withdrawal on or before the 20<sup>th</sup> benefit anniversary, your Protected Withdrawal Value on the 20<sup>th</sup> anniversary will be at least quadruple (400%) of your initial Protected Withdrawal Value established on the date of benefit election. If you begin taking Lifetime Withdrawals prior to your 10<sup>th</sup> or 20<sup>th</sup> benefit anniversary, however, these automatic increases will not occur. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Unadjusted Account Value upon any step-up, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals (see below).

**Key Feature – Annual Income Amount under Highest Daily Lifetime 6 Plus**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years unless you take a withdrawal of Excess Income, as described below. The percentage initially depends on the age of the Annuitant on the date of the first Lifetime Withdrawal. The percentages are: 4% for ages 45 – less than 59½; 5% for ages 59½ – 79, and 6% for ages 80 or older. (Note that for purposes of the age tiers used with this benefit, we deem the Annuitant to have reached age 59½ on the 183<sup>rd</sup> day after his/her 59<sup>th</sup> birthday). Under the Highest Daily Lifetime 6 Plus benefit, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year and also will reduce the Protected Withdrawal Value on a dollar-for-dollar basis. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Excess Income also will reduce the Protected Withdrawal Value by the same ratio.

------

[Back to **Table of Contents**](#TOC_956)

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal is a withdrawal of Excess Income.

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of Excess Income, you cannot request
 an amount that would result in cumulative withdrawals in that Annuity Year exceeding your Annual Income Amount.

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of Excess Income, the amount you request plus the amount of any applicable CDSC and/or tax withholding cannot
 cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of Excess Income than if you request a gross withdrawal.

You may use the systematic withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit and must be taken as a gross withdrawal.

Any Purchase Payment that you make subsequent to the election of Highest Daily Lifetime 6 Plus and subsequent to the first Lifetime Withdrawal will (i) immediately increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including any associated Purchase Credits) based on the age of the Annuitant at the time of the first Lifetime Withdrawal (the percentages are: 4% for ages 45 – less than 59½; 5% for ages 59½ – 79 and 6% for ages 80 and older) and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including any associated Purchase Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Except for Annuities that were issued in Oregon, effective September 14, 2012, we no longer permit additional Purchase Payments to Annuities with the Highest Daily Lifetime 6 Plus benefit. For Annuities issued in Oregon, this restriction does not apply and you may continue to make additional Purchase Payments at this time.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of Highest Daily Lifetime 6 Plus. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Auto Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Unadjusted Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the Annuitant on the Annuity Anniversary as of which the step-up would occur. The percentages are: 4% for ages 45 – less than 59½; 5% for ages 59½ – 79, and 6% for ages 80 and older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. We will not automatically increase your Annual Income Amount solely as a result of your attaining a new age that is associated with a new age-based percentage. The Unadjusted Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. All daily valuations and annual step-ups will only occur on a Valuation Day. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Unadjusted Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Unadjusted Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Highest Daily Lifetime 6 Plus has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Highest Daily Lifetime 6 Plus upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should consult with your financial professional and carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject. Any such increased charge will not be greater than the maximum charge set forth in the table entitled "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)."

If you are enrolled in a systematic withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount. You must notify us in order to increase the withdrawal amount of any systematic withdrawal program.

------

[Back to **Table of Contents**](#TOC_956)

The Highest Daily Lifetime 6 Plus benefit does not affect your ability to take partial withdrawals under your Annuity, or limit your ability to take partial withdrawals that exceed the Annual Income Amount. Under Highest Daily Lifetime 6 Plus, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in any Annuity Year are less than the Annual Income Amount, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years.

Because both the Protected Withdrawal Value and Annual Income Amount are determined in a way that is not solely related to Unadjusted Account Value, it is possible for the Unadjusted Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime 6 Plus benefit or any other fees and charges under the Annuity. Assume the following for all three examples:

• The
 Issue Date is November 1, 2010

• Highest
 Daily Lifetime 6 Plus benefit is elected on August 1, 2011

• The
 Annuitant was 70 years old when he/she elected the Highest Daily Lifetime 6 Plus benefit

• The
 first withdrawal is a Lifetime Withdrawal

**Example of Dollar-for-Dollar Reductions**

On October 24, 2011, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the designated life is between the ages of 59½ and 79 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including October 31, 2011) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500).

**Example of Proportional Reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on October 27, 2011 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $1,500 reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the Excess Income to the Account Value immediately prior to the Excess Income. (Note that if there are other future withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before Lifetime Withdrawal | $118000.00 |
|  Amount of "non" Excess Income | $3500.00 |
|  Account Value immediately before Excess Income of $1,500 | $114500.00 |
|  Excess Income amount | $1500.00 |
|  Ratio ($1,500/$114,500 = 1.31%) | 1.31% |
|  Annual Income Amount | $6000.00 |
|  1.31% Reduction in Annual Income Amount | $78.60 |
|  Annual Income Amount for future Annuity Years | $5921.40 |

---

**Example** **of Highest Daily Auto Step-Up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000

• The
 Unadjusted Account Value on July 1 is $239,000

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Highest Daily Lifetime 6 Plus. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_8_956)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described earlier in this section will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with the Highest Daily Lifetime 6 Plus benefit. You must tell us at the time you take the withdrawal if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under the Highest Daily Lifetime 6 Plus benefit. If you do not designate the withdrawal as a Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Annual Income Amount, which is based on your Protected Withdrawal Value. Once you elect to take the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken. If you do not take a Non-Lifetime Withdrawal before beginning Lifetime Withdrawals, you lose the ability to take it.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value. It will also proportionally reduce the Periodic Value guarantees on the tenth and twentieth anniversaries of the benefit effective date (see description in "Key Feature – Protected Withdrawal Value," above). It will reduce both by the percentage the total withdrawal amount (including any applicable CDSC and any applicable Market Value Adjustment) represents of the then current Account Value immediately prior to the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a systematic withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first withdrawal under the program will be considered a Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit.

Assume the following:

The Issue Date is December 1

• The
 Highest Daily Lifetime 6 Plus benefit is elected on September 1

• The
 Unadjusted Account Value at benefit election was $105,000

• The
 Annuitant was 70 years old when he/she elected the Highest Daily Lifetime 6 Plus benefit

• No
 previous withdrawals have been taken under the Highest Daily Lifetime 6 Plus benefit

------

[Back to **Table of Contents**](#TOC_956)

On October 3, the Protected Withdrawal Value is $125,000, the 10<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000, and the 20<sup>th</sup> benefit year minimum Periodic Value guarantee is $420,000, and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on October 3 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with the Highest Daily Lifetime 6 Plus benefit will be reduced by the ratio of the total withdrawal amount to the Account Value just prior to the withdrawal being taken.

**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal amount | $15000 |
|  Divided by Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375 |
|  10<sup>th</sup> benefit year Minimum Periodic Value | $183750 |
|  20<sup>th</sup> benefit year Minimum Periodic Value | $367500 |

---

**Required Minimum Distributions**

Required Minimum Distributions ("RMD") for this Annuity must be taken by April 1<sup>st</sup> in the year following the date you turn the applicable age and by December 31<sup>st</sup> for subsequent calendar years. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. See "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for more information about the applicable age and further discussions of RMDs.

If the annual RMD amount is greater than the Annual Income Amount, a withdrawal of the RMD amount will not be treated as a withdrawal of Excess Income, as long as the RMD amount is calculated by us for this Annuity and administered under a program we support each calendar year. If you are not participating in an RMD withdrawal program each calendar year, you can alternatively satisfy the RMD amount without it being treated as a withdrawal of Excess Income as long as the below rules are applied.

A "Calendar Year" runs from January 1 to December 31 of that year.

Withdrawals made from the Annuity during an Annuity Year to meet the RMD provisions of the Code will not be treated as withdrawals of Excess Income if they are taken during one Calendar Year.

If Lifetime Withdrawals are taken over two Calendar Years, the amount that will not be treated as a withdrawal of Excess Income is:

• the
 remaining Annual Income Amount for that Annuity Year; plus

• the
 second Calendar Year's RMD amount minus the Annual Income Amount (the result of which cannot be less than zero).

**Example**

The following example is purely hypothetical and intended to illustrate the scenario described above. Note that withdrawals must comply with all IRS guidelines in order to satisfy the RMD for the current calendar year.

---

| | | |
|:---|:---|:---|
|  **First Calendar Year** | **Annuity Year** | **Second Calendar Year** |
|  01/01/2021 to 12/31/2021 | 06/01/2021 to 05/31/2022 | 01/01/2022 to 12/31/2022 |

---

Assume the following:

• RMD
 Amount for Both Calendar Years = $6,000;

• Annual
 Income Amount = $5,000; and

• A
 withdrawal of $2,000 was taken on 07/01/2021 (during the First Calendar Year) resulting in a remaining Annual Income Amount for the Annuity
 Year of $3,000.

The amount that can be taken between 01/03/2022 and 05/31/2022 without creating a withdrawal of Excess Income is $4,000. Here is the calculation:

• The
 remaining Annual Income for that Annuity Year ($3,000); plus

• The
 Second Calendar Year's RMD Amount minus the Annual Income Amount ($6,000 - $5,000 = $1,000).

If the $4,000 is withdrawn during the Annuity Year, the remaining Annual Income Amount will be $0 and the remaining RMD amount for the Second Calendar Year ($2,000) may be taken in the next Annuity Year beginning on 06/01/2022.

Other Important Information

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• If,
 in any Annuity Year, your RMD amount is less than your Annual Income Amount, any withdrawals in excess of the Annual Income Amount
 will be treated as Excess Income.

• If
 you do not comply with the rules described above, any withdrawal that exceeds the Annual Income Amount will be treated as a withdrawal
 of Excess Income, which will reduce your Annual Income Amount in future Annuity Years. This may include a situation where you
 comply with the rules described above and then decide to take additional withdrawals after satisfying your RMD from the Annuity.

• If
 you take a partial withdrawal to satisfy RMD and designate that withdrawal as a Non-Lifetime Withdrawal, please note that all Non-Lifetime
 Withdrawal provisions will apply.

**Benefits Under Highest Daily Lifetime 6 Plus**

• To
 the extent that your Unadjusted Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that
 are less than or equal to the Annual Income Amount, and amounts are still payable under Highest Daily Lifetime 6 Plus, we will make an
 additional payment, if any, for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year. Thus, in that scenario,
 the remaining Annual Income Amount would be payable even though your Unadjusted Account Value was reduced to zero. In subsequent
 Annuity Years we make payments that equal the Annual Income Amount as described in this section. We will make payments until
 the death of the single designated life. After the Unadjusted Account Value is reduced to zero, you will not be permitted to make additional
 Purchase Payments to your Annuity. To the extent that cumulative partial withdrawals in an Annuity Year exceed the Annual Income
 Amount ("Excess Income") and reduce your Unadjusted Account Value to zero, the Highest Daily Lifetime 6 Plus benefit terminates,
 we will make no further payments of the Annual Income Amount and no additional Purchase Payments will be permitted. However,
 if a partial withdrawal in the latter scenario was taken to satisfy a Required Minimum Distribution (as described above) under the Annuity,
 then the benefit will not terminate, and we will continue to pay the Annual Income Amount in subsequent Annuity Years until the death
 of the designated life.

• Please
 note that if your Unadjusted Account Value is reduced to zero, all payments in each Annuity Year subsequent to the Annuity Year your
 Account Value is reduced to zero will be treated as annuity payments. Also, any Death Benefit will terminate if withdrawals reduce your
 Unadjusted Account Value to zero. This means that any Death Benefit is terminated and no Death Benefit is payable if your Unadjusted
 Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal
 to, your Annual Income Amount.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

(1) apply
 your Unadjusted Account Value, less any applicable tax charges, to any annuity option available; or

(2) request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 If this option is elected, the Annual Income Amount will not increase after annuity payments have begun. We will make payments
 until the death of the single designated life. We must receive your request in a form acceptable to us at our Service Center.
 If applying your Unadjusted Account Value, less any applicable tax charges, to the life-only annuity payment rates results in a
 higher annual payment, we will give you the higher annual payment.

• In
 the absence of an election when mandatory annuity payments are to begin we currently make annual annuity payments in the form of a single
 life fixed annuity with eight payments certain, by applying the greater of the annuity rates then currently available or the annuity rates
 guaranteed in your Annuity. We reserve the right at any time to increase or decrease the period certain in order to comply with the Code
 (e.g., to shorten the period certain to match life expectancy under applicable IRS tables). The amount that will be applied to provide such annuity payments
 will be the greater of:

(1) the
 present value of the future Annual Income Amount payments (if no Lifetime Withdrawal was ever taken, we will calculate the Annual
 Income Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin). Such present value
 will be calculated using the greater of the single life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed
 in your Annuity; and

(2) the
 Unadjusted Account Value.

**Other Important Considerations**

• Withdrawals
 under the Highest Daily Lifetime 6 Plus benefit are subject to all of the terms and conditions of the Annuity, including any applicable
 CDSC for the Non-Lifetime Withdrawal as well as partial withdrawals that exceed the Annual Income Amount. If you have an active
 systematic withdrawal program running at the time you elect this benefit, the first systematic withdrawal that processes after your election
 of the benefit will be deemed a Lifetime Withdrawal. Withdrawals made while the Highest Daily Lifetime 6 Plus Benefit is in effect will
 be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. Any withdrawals made under the benefit will be taken on a proportional
 basis from the Variable Options (including the AST Investment Grade Bond Portfolio) and the DCA Market Value
 Adjustment Options. If you have an active systematic withdrawal program running at the time you elect this benefit, the program must
 withdraw funds on a proportional basis.

• Any
 Lifetime Withdrawal that does not cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount is not subject
 to a CDSC, even if the total amount of such withdrawals in any Annuity Year exceeds the maximum Free Withdrawal amount. For example,
 if your Free Withdrawal amount is $10,000 and your Annual Income Amount is $11,000, withdrawals of your entire Annual

------

[Back to **Table of Contents**](#TOC_956)

Income Amount in any Annuity Year would not trigger a CDSC. If you withdrew $12,000, however, $1,000 would be subject to a CDSC. • You should carefully consider when to begin taking Lifetime Withdrawals. If you begin taking withdrawals early, you may maximize the time during which you may take Lifetime Withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge. On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals reduce your Unadjusted Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss with your financial professional when it may be appropriate for you to begin taking Lifetime Withdrawals.

• You
 cannot allocate Purchase Payments or transfer Unadjusted Account Value to or from the AST Investment Grade Bond Portfolio. **A** **summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **.** You can find a copy of the AST Investment
 Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>.

• Transfers
 to and from the Permitted Variable Options, the DCA Market Value Adjustment Options, and the AST Investment Grade Bond Portfolio
 triggered by the predetermined mathematical formula will not count toward the maximum number of free transfers allowable under
 an Annuity.

• Upon
 inception of the benefit, 100% of your Unadjusted Account Value must be allocated to the Permitted Variable Options. We may amend
 the Permitted Variable Options from time to time. Changes to the Permitted Variable Options, or to the requirements as to how you may
 allocate your Account Value with this benefit, may apply to current participants in the benefit. To the extent that changes apply to current
 participants in the benefit, they will only apply upon re-allocation of Account Value, or upon addition of subsequent Purchase Payments.
 That is, we will not require such current participants to re-allocate Account Value to comply with any new requirements.

• Any
 Death Benefit, including any optional Death Benefit that you elected, will terminate if withdrawals taken under Highest Daily Lifetime
 6 Plus reduce your
 Unadjusted Account Value to zero. This means that any Death Benefit is terminated and no

• Death
 Benefit is payable if your Unadjusted Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income
 Amount or less than or equal to, your Annual Income Amount. (See " [<u>Triggers for Payment of the Death Benefit</u>](#chapter_11-sect1_9_956) "
 for more information.)

• The
 maximum charge for Highest Daily Lifetime 6 Plus is 1.50% annually of the greater of the Unadjusted Account Value and Protected Withdrawal
 Value. As discussed in "Highest Daily Auto Step-Up" above, we may increase the fee upon a step-up under this benefit. We deduct
 this charge on quarterly anniversaries of the benefit effective date, based on the values on the last Valuation Day prior to the quarterly
 anniversary. Thus, we deduct, on a quarterly basis, 0.375% of the greater of the prior Valuation Day's Unadjusted Account Value and the prior Valuation
 Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options, including
 the AST Investment Grade Bond Portfolio. You will begin paying this charge as of the effective date of the benefit even if you do not
 begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals
 and/or if you never receive any lifetime income payments.

If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated Purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for the Highest Daily Lifetime 6 Plus benefit would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, partial withdrawals may reduce the Unadjusted Account Value to zero. If this happens and the Annual Income Amount is greater than zero, we will make payments under the benefit

**Election of and Designations under the Benefit**

We no longer permit elections of Highest Daily Lifetime 6 Plus. Previously, for elections of Highest Daily Lifetime 6 Plus, there must have been either, a single Owner who is the same as the Annuitant, or if the Annuity is entity owned, there must have been a single natural person Annuitant. In either case, the Annuitant must have been at least 45 years old. Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime 6 Plus. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime 6 Plus, except if (a) the new Owner has the same taxpayer identification number as the previous Owner, (b) ownership is transferred from a custodian to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

Highest Daily Lifetime 6 Plus could be elected at the time that you purchase your Annuity or after the Issue Date, subject to its availability, and our eligibility rules and restrictions.

If you are currently participating in a systematic withdrawal program, amounts withdrawn under the program must be taken on a proportional basis from your Annuity's Variable Options (i.e., in direct proportion to the proportion that each such Variable Option bears to your total Account Value) in order for you to be eligible for the benefit. Thus, you may not have elected Highest Daily Lifetime 6 Plus so long as you participate in a systematic withdrawal program in which withdrawals are not taken on a proportional basis.

------

[Back to **Table of Contents**](#TOC_956)

**Termination of the Benefit**

You may terminate Highest Daily Lifetime 6 Plus at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election may apply.

**The benefit automatically terminates upon the first to occur of the following:**

**(I)** **your termination of the benefit;** 

**(II)** **your surrender of the Annuity;** 

**(III)** **the Latest Annuity Date or your election to begin receiving annuity payments (although if you have elected to receive** **the Annual Income Amount in the form of annuity payments, we will continue to pay the Annual Income Amount);** 

**(IV)** **our receipt of Due Proof of Death of the Owner or Annuitant (for entity-owned annuities);** 

**(V)** **both the Unadjusted Account Value and Annual Income Amount equal zero; or** 

**(VI)** **you cease to meet our requirements as described in "Election of and Designations under the Benefit" above or if we** **process a requested change that is not consistent with our allowed Owner, Annuitant or Beneficiary designations.** **\*** 

\* Prior to terminating a benefit, we will send you written notice and provide you with an opportunity to change your designations.

"Due Proof of Death" is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claim forms from at least one Beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary.

Upon termination of Highest Daily Lifetime 6 Plus other than upon the death of the Annuitant or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. This final charge will be deducted even if it results in the Unadjusted Account Value falling below the Account Value Floor. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options, and (ii) unless you are participating in an asset allocation program (i.e., Custom Portfolios Program, or 6 or 12 Month DCA Program for which we are providing administrative support), transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If, prior to the transfer from the AST Investment Grade Bond Portfolio, the Unadjusted Account Value in the Variable Options is zero, we will transfer such amounts to the AST Government Money Market Variable Option.

If a surviving spouse elects to continue the Annuity, the Highest Daily Lifetime 6 Plus benefit terminates upon Due Proof of Death.

**How Highest Daily Lifetime 6 Plus Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST** **Investment Grade Bond Portfolio**

An integral part of Highest Daily Lifetime 6 Plus (including Highest Daily Lifetime 6 Plus with LIA and Spousal Highest Daily Lifetime 6 Plus) is the predetermined mathematical formula used to transfer Unadjusted Account Value between the Permitted Variable Options and a specified bond fund within the Advanced Series Trust (the AST Investment Grade Bond Portfolio, referred to as the "Bond Portfolio"). This predetermined mathematical formula ("formula") runs each Valuation Day that the benefit is in effect on your Annuity and, as a result, transfers of Unadjusted Account Value between the Permitted Variable Options and the Bond Portfolio can occur on any Valuation Day subject to the conditions described below. Only the predetermined mathematical formula can transfer Unadjusted Account Value to and from the Bond Portfolio, and thus you may not allocate Purchase Payments to or make transfers to or from the Bond Portfolio We are not providing you with investment advice through the use of the formula nor does the formula constitute an investment strategy that we are recommending to you. The formula by which the transfer operates is designed primarily to mitigate some of the financial risks that we incur in providing the guarantee under Highest Daily Lifetime 6 Plus. The formula is not forward looking and contains no predictive or projective component with respect to the markets, the Unadjusted Account Value or the Protected Withdrawal Value. The formula is described below.

As indicated above, we limit the Variable Options to which you may allocate Unadjusted Account Value if you elect Highest Daily Lifetime 6 Plus. For purposes of these benefits, we refer to those permitted Investment Options as the "Permitted Variable Options". Because these restrictions and the use of the formula lessen the risk that your Unadjusted Account Value will be reduced to zero while you are still alive, they also reduce the likelihood that we will make any lifetime income payments under this benefit. They may also limit your upside potential for growth.

If you are participating in Highest Daily Lifetime 6 Plus and also are participating in the 6 or 12 Month DCA Program, and the formula under the benefit dictates a transfer from the Permitted Variable Options to the Bond Portfolio, then the amount to be transferred will be taken entirely from the Variable Options, provided there is sufficient Unadjusted Account Value in those Variable Options to meet the required transfer amount. Only if there is insufficient Unadjusted Account Value in those Variable Options will an amount be transferred from the DCA Market Value Adjustment Options. For purposes of the discussion below concerning transfers from the Permitted Variable Options to the Bond Portfolio, amounts held within the DCA Market Value Adjustment Options are included within the term "Permitted Variable Options". Thus, amounts may be transferred from the DCA Market Value Adjustment Options in the circumstances described above and in the section of the prospectus entitled "<u>Transfers and Rebalancing Programs - 6 or 12 Month Dollar Cost</u> 

------

[Back to **Table of Contents**](#TOC_956)

<u>Averaging Program</u>". Any transfer dictated by the formula out of the Bond Portfolio will only be transferred to the Permitted Variable Options, not the DCA Market Value Adjustment Options. We will not assess any applicable Market Value Adjustment with respect to transfers under the formula from the DCA Market Value Adjustment Options.

Generally, the formula, which is applied each Valuation Day, operates as follows. The formula starts by identifying an Income Basis **(as defined in** [**<u>Appendix I</u>**](#chapter_26-sect1_1_956)**)** for that day and then multiplies that figure by 5%, to produce a projected (i.e., hypothetical) income amount. This amount may be different than the actual Annual Income Amount currently guaranteed under your benefit. Then it produces an estimate of the total amount targeted in the formula, based on the projected income amount and factors set forth in the formula. In the formula, we refer to that value as the "Target Value" or "L". If you have already made a Lifetime Withdrawal, your projected income amount (and thus your Target Value) would take into account any automatic step-up, any subsequent Purchase Payments (including any associated Purchase Credits), and any withdrawals of Excess Income. Next, the formula subtracts from the Target Value the amount held within the Bond Portfolio on that day, and divides that difference by the amount held within the Permitted Variable Options. That ratio, which essentially isolates the amount of your Target Value that is not offset by amounts held within the Bond Portfolio, is called the "Target Ratio" or "r". If, on each of three consecutive Valuation Days, the Target Ratio is greater than 83% but less than or equal to 84.5%, the formula will, on such third Valuation Day, make a transfer from the Permitted Variable Options in which you are invested (subject to the 90% cap discussed below) to the Bond Portfolio. Once a transfer is made, the Target Ratio must again be greater than 83% but less than or equal to 84.5% for three consecutive Valuation Days before a subsequent transfer to the Bond Portfolio will occur. If, however, on any Valuation Day, the Target Ratio is above 84.5%, the formula will make a transfer from the Permitted Variable Options (subject to the 90% cap) to the Bond Portfolio (as described above). If the Target Ratio falls below 78% on any Valuation Day, then a transfer from the Bond Portfolio to the Permitted Variable Options (excluding the DCA Market Value Adjustment Options) will occur.

The formula will not execute a transfer to the Bond Portfolio that results in more than 90% of your Unadjusted Account Value being allocated to the Bond Portfolio ("90% cap") on that Valuation Day. Thus, on any Valuation Day, if the formula would require a transfer to the Bond Portfolio that would result in more than 90% of the Unadjusted Account Value being allocated to the Bond Portfolio, only the amount that results in exactly 90% of the Unadjusted Account Value being allocated to the Bond Portfolio will be transferred. Additionally, future transfers into the Bond Portfolio will not be made (regardless of the performance of the Bond Portfolio and the Permitted Variable Options) at least until there is first a transfer out of the Bond Portfolio. Once this transfer occurs out of the Bond Portfolio, future amounts may be transferred to or from the Bond Portfolio if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the Bond Portfolio that results in greater than 90% of your Unadjusted Account Value being allocated to the Bond Portfolio. However, it is possible that, due to the investment performance of your allocations in the Bond Portfolio and your allocations in the Permitted Variable Options you have selected, your Unadjusted Account Value could be more than 90% invested in the Bond Portfolio.

If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the Bond Portfolio at least until there is first a transfer out of the Bond Portfolio, regardless of how much of your Unadjusted Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Unadjusted Account Value is allocated to the Bond Portfolio, and the formula will still not transfer any of your Unadjusted Account Value to the Bond Portfolio (at least until there is first a transfer out of the Bond Portfolio). For example,

• September
 4 – a transfer is made to the Bond Portfolio that results in the 90% cap being met and now $90,000 is allocated to the Bond Portfolio
 and $10,000 is allocated to the Permitted Variable Options.

• September
 5 – you make an additional Purchase Payment of $10,000. No transfers have been made from the Bond Portfolio to the Permitted
 Variable Options since the cap went into effect on September 4.

• On
 September 5 – (and at least until first a transfer is made out of the Bond Portfolio under the formula) – the $10,000 payment
 is allocated to the
 Permitted Variable Options and on this date you have 82% in the Bond Portfolio and 18% in the Permitted Variable Options
 (such that $20,000 is allocated to the Permitted Variable Options and $90,000 to the Bond Portfolio).

• Once
 there is a transfer out of the Bond Portfolio (of any amount), the formula will operate as described above, meaning that the formula could
 transfer amounts to or from the Bond Portfolio if dictated by the formula (subject to the 90% cap).

Under the operation of the formula, the 90% cap may come into and out of effect multiple times while you participate in the benefit. We will continue to monitor your Unadjusted Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the Bond Portfolio as dictated by the formula.

Under the formula, investment performance of your Unadjusted Account Value that is negative, flat, or even moderately positive may result in a transfer of a portion of your Unadjusted Account Value in the Permitted Variable Options to the Bond Portfolio because such investment performance will tend to increase the Target Ratio. In deciding how much to transfer, we use another formula, which essentially seeks to reallocate amounts held in the Permitted Variable Options and the Bond Portfolio so that the Target Ratio meets a target, which currently is equal to 80%. The further the Target Ratio is from 80% when a transfer is occurring under the formula, the greater the transfer amount will be. Once you elect Highest Daily Lifetime 6 Plus, the values we use to compare to the Target Ratio will be fixed.

Additionally, on each monthly Annuity Anniversary (if the monthly Annuity Anniversary does not fall on a Valuation Day, the next Valuation Day will be used), following all of the above described daily calculations, if there is money allocated to the Bond Portfolio, we will perform an additional monthly calculation to determine whether or not a transfer will be made from the Bond Portfolio to the Permitted Variable Options. This transfer will automatically occur provided that the Target Ratio, as described above, would be less than 83% after the transfer. The formula will not execute a transfer if the Target Ratio after this transfer would occur would be greater than or equal to 83%.

------

[Back to **Table of Contents**](#TOC_956)

The amount of the transfer will be equal to the lesser of:

(1) The
 total value of all your Unadjusted Account Value in the Bond Portfolio, or

(2) An
 amount equal to 5% of your total Unadjusted Account Value.

While you are not notified when your Annuity reaches a transfer trigger under the formula, you will receive a confirmation statement indicating the transfer of a portion of your Unadjusted Account Value either to or from the Bond Portfolio. Depending on the results of the calculations of the formula, we may, on any Valuation Day:

• Not
 make any transfer between the Permitted Variable Options and the Bond Portfolio; or

• If
 a portion of your Unadjusted Account Value was previously allocated to the Bond Portfolio, transfer all or a portion of those amounts
 to the Permitted
 Variable Options (as described above); or

• Transfer
 a portion of your Unadjusted Account Value in the Permitted Variable Options and the DCA Market Value Adjustment Options to the
 Bond Portfolio.

Prior to the first Lifetime Withdrawal, the primary driver of transfers to the Bond Portfolio is the difference between your Unadjusted Account Value and your Protected Withdrawal Value. If none of your Unadjusted Account Value is allocated to the Bond Portfolio, then over time the formula permits an increasing difference between the Unadjusted Account Value and the Protected Withdrawal Value before a transfer to the Bond Portfolio occurs. Therefore, as time goes on, while none of your Unadjusted Account Value is allocated to the Bond Portfolio, the smaller the difference between the Protected Withdrawal Value and the Unadjusted Account Value, the more the Unadjusted Account Value can decrease prior to a transfer to the Bond Portfolio.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Unadjusted Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the Bond Portfolio pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Unadjusted Account Value and your Protected Withdrawal Value;

• The
 amount of time Highest Daily Lifetime 6 Plus has been in effect on your Annuity;

• The
 amount allocated to and the performance of the Permitted Variable Options and the Bond Portfolio;

• Any
 additional Purchase Payments you make to your Annuity (while the benefit is in effect); and

• Any
 withdrawals you take from your Annuity (while the benefit is in effect).

At any given time, some, most or none of your Unadjusted Account Value will be allocated to the Bond Portfolio, as dictated by the formula.

Because the amount allocated to the Bond Portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. The greater the amounts allocated to either the Bond Portfolio or to the Permitted Variable Options, the greater the impact performance of that Variable Option has on your Unadjusted Account Value and thus the greater the impact on whether (and how much) your Unadjusted Account Value is transferred to or from the Bond Portfolio. It is possible, under the formula, that if a significant portion of your Unadjusted Account Value is allocated to the Bond Portfolio and that Variable Option has positive performance, the formula might transfer a portion of your Unadjusted Account Value to the Permitted Variable Options, even if the performance of your Permitted Variable Options is negative. Conversely, if a significant portion of your Unadjusted Account Value is allocated to the Bond Portfolio and that Variable Option has negative performance, the formula may transfer additional amounts from your Permitted Variable Options to the Bond Portfolio even if the performance of your Permitted Variable Options is positive.

If you make additional Purchase Payments to your Annuity, they will be allocated in accordance with your Annuity. Once allocated, they will also be subject to the formula described above and therefore may be transferred to the Bond Portfolio, if dictated by the formula and subject to the 90% cap rule described above.

Any Unadjusted Account Value in the Bond Portfolio will not participate in the positive or negative investment experience of the Permitted Variable Options until it is transferred out of the Bond Portfolio.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts beginning after the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. See "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for more information about the applicable age and further discussions of RMDs.

As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. Please see "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for a detailed discussion of the tax treatment of withdrawals. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in Highest Daily Lifetime 6 Plus or Spousal Highest Daily Lifetime 6 Plus through a non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

------

[Back to **Table of Contents**](#TOC_956)

***HIGHEST DAILY LIFETIME 6 PLUS WITH LIFETIME INCOME ACCELERATOR (HD6 PLUS WITH LIA)***

Highest Daily Lifetime 6 Plus with LIA is no longer available. If you have elected this benefit, the benefit guarantees, until the death of the single designated life, the ability to withdraw an amount equal to double the Annual Income Amount (which we refer to as the "LIA Amount") if you meet the conditions set forth below. You could choose Highest Daily Lifetime 6 Plus with or without also electing LIA, however you could not elect LIA without Highest Daily Lifetime 6 Plus and you must have elected the LIA benefit at the time you elected Highest Daily Lifetime 6 Plus. Please note that if you terminate Highest Daily Lifetime 6 Plus and elected the Highest Daily Lifetime 6 Plus with LIA you would lose the guarantees that you had accumulated under your existing benefit and will begin the new guarantees under the new benefit you elect based on your Unadjusted Account Value as of the date the new benefit becomes active. Highest Daily Lifetime 6 Plus with LIA is offered as an alternative to other lifetime withdrawal options. This benefit may not be combined with any other optional living benefit or death benefit. As long as your Highest Daily Lifetime 6 Plus with LIA benefit is in effect, you must allocate your Unadjusted Account Value in accordance with the permitted and available Investment Option(s) with this benefit. The income benefit under Highest Daily Lifetime 6 Plus with LIA currently is based on a single "designated life" who is between the ages of 45 and 75 on the date that the benefit is elected and received in Good Order. All terms and conditions of Highest Daily Lifetime 6 Plus apply to this version of the benefit, except as described herein. As is the case with Highest Daily Lifetime 6 Plus, Highest Daily Lifetime 6 Plus with LIA involves your participation in a predetermined mathematical formula that transfers Account Value between your Variable Options and the AST Investment Grade Bond Portfolio. Please see Highest Daily Lifetime 6 Plus above for a description of the predetermined mathematical formula.

Highest Daily Lifetime 6 Plus with LIA is not long-term care insurance and should not be purchased as a substitute for long-term care insurance. The income you receive through the Lifetime Income Accelerator may be used for any purpose, and it may or may not be sufficient to address expenses you may incur for long-term care or other medical or retirement expenses. You should seek professional advice to determine your financial needs for long-term care.

If this benefit is elected on an Annuity held as a 403(b) plan, then in addition to meeting the eligibility requirements listed below for the LIA Amount you must separately qualify for distributions from the 403(b) plan itself.

The maximum charge is 2.00% annually of the greater of the Unadjusted Account Value and Protected Withdrawal Value. We deduct this charge on quarterly anniversaries of the benefit effective date. Thus, we deduct, on a quarterly basis, 0.50% of the greater of the prior Valuation Day's Unadjusted Account Value and the prior Valuation Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options, including the AST Investment Grade Bond Portfolio.

If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated Purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for the Highest Daily Lifetime 6 Plus with LIA benefit would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, withdrawals may reduce the Unadjusted Account Value to zero.

------

[Back to **Table of Contents**](#TOC_956)

**Eligibility Requirements for LIA Amount.** Both a waiting period of 36 months from the benefit effective date and an elimination period of 120 days from the date of notification that one or both of the requirements described immediately below have been met apply before you can become eligible for the LIA Amount. The 120 day elimination period begins on the date that we receive notification from you of your eligibility for the LIA Amount. Thus, assuming the 36 month waiting period has been met and we have received the notification referenced in the immediately preceding sentence, the LIA Amount would be available for withdrawal on the Valuation Day immediately after the 120<sup>th</sup> day. The waiting period and the elimination period may run concurrently. In addition to satisfying the waiting and elimination period, at least one of the following requirements ("LIA conditions") must be met.

(1) The
 designated life is confined to a qualified nursing facility. A qualified nursing facility is a facility operated pursuant to laws of any
 United States jurisdiction
 providing medically necessary in-patient care which is prescribed by a licensed physician in writing and based on physical
 limitations which prohibit daily living in a non-institutional setting.

(2) The
 designated life is unable to perform two or more basic abilities of caring for oneself or "activities of daily living." We
 define these basic abilities
 as:

(a) Eating:
 Feeding oneself by getting food into the body from a receptacle (such as a plate, cup or table) or by a feeding tube or intravenously.

(b) Dressing:
 Putting on and taking off all items of clothing and any necessary braces, fasteners or artificial limbs.

(c) Bathing:
 Washing oneself by sponge bath; or in either a tub or shower, including the task of getting into or out of the tub or shower.

(d) Toileting:
 Getting to and from the toilet, getting on and off the toilet, and performing associated personal hygiene.

(e) Transferring:
 Moving into or out of a bed, chair or wheelchair.

(f) Continence:
 Maintaining control of bowel or bladder function; or when unable to maintain control of bowel or bladder function, the ability
 to perform personal hygiene (including caring for catheter or colostomy bag).

You must notify us in writing when the LIA conditions have been met. If, when we receive such notification, there are more than 120 days remaining until the end of the waiting period described above, you will not be eligible for the LIA Amount, and you will have to notify us again in writing in order to become eligible. If there are 120 days or less remaining until the end of the waiting period when we receive notification that the LIA conditions are met, we will determine eligibility for the LIA Amount through our then current administrative process, which may include, but is not limited to, documentation verifying the LIA conditions and/or an assessment by a third party of our choice. Such assessment may be in person and we will assume any costs associated with the aforementioned assessment. The designated life must be available for any assessment or reassessment pursuant to our administrative process requirements. Please note that you must be available in the U.S. for the assessment. Once eligibility is determined, the LIA Amount is equal to double the Annual Income Amount as described above under the Highest Daily Lifetime 6 Plus benefit.

Additionally, once eligibility is determined, we will reassess your eligibility on an annual basis although your LIA benefit for the Annuity Year that immediately precedes or runs concurrent with our reassessment will not be affected if it is determined that you are no longer eligible. Your first reassessment may occur in the same year as your initial assessment. If we determine that you are no longer eligible to receive the LIA Amount, the Annual Income Amount would replace the LIA Amount on the next Annuity Anniversary (the "ineligibility effective date"). However, 1) if you were receiving income through a systematic withdrawal program that was based on your LIA Amount; 2) you subsequently become ineligible to receive your LIA Amount, and 3) we do not receive new withdrawal instructions from you prior to the ineligibility effective date, we will cancel such systematic withdrawal program on the ineligibility effective date. You will be notified of your subsequent ineligibility and the date systematic withdrawal payments will stop before either occur. If any existing systematic withdrawal program is canceled, you must enroll in a new systematic withdrawal program if you wish to receive income on a systematic basis. You may establish a new or make changes to any existing systematic withdrawal program at any time by contacting our Annuity Service Center. All "Excess Income" conditions described above in "Key Feature – Annual Income Amount under Highest Daily Lifetime Income 6 Plus" would apply. There is no limit on the number of times you can become eligible for the LIA Amount, however, each time would require the completion of the 120-day elimination period, notification that the designated life meets the LIA conditions, and determination, through our then current administrative process, that you are eligible for the LIA Amount, each as described above.

**LIA Amount at the first Lifetime Withdrawal.** If your first Lifetime Withdrawal subsequent to election of Highest Daily Lifetime 6 Plus with LIA occurs while you are eligible for the LIA Amount, the available LIA Amount is equal to double the Annual Income Amount.

**LIA Amount after the first Lifetime Withdrawal.** If you become eligible for the LIA Amount after you have taken your first Lifetime Withdrawal, the available LIA Amount for the current and subsequent Annuity Years is equal to double the then current Annual Income Amount. However, the available LIA Amount in the current Annuity Year is reduced by any Lifetime Withdrawals that have been taken in the current Annuity Year. Cumulative Lifetime Withdrawals in an Annuity Year which are less than or equal to the LIA Amount (when eligible for the LIA Amount) will not reduce your LIA Amount in subsequent Annuity Years, but any such withdrawals will reduce the LIA Amount on a dollar-for-dollar basis in that Annuity Year.

For new issuances of this benefit, we may institute a "cut-off" date that would stop the appreciation of the Protected Withdrawal Value, even if no Lifetime Withdrawal had been taken prior to the cut-off date (thus affecting the determination of the LIA Amount). We will not apply any cut-off date to those who elected this benefit prior to our institution of a cut-off date.

------

[Back to **Table of Contents**](#TOC_956)

**Withdrawals in Excess of the LIA Amount.** Withdrawals (other than the Non-Lifetime Withdrawal) of any amount in a given Annuity Year up to the LIA Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. However, if your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the LIA Amount ("Excess Income"), your LIA Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions) by the result of the ratio of the excess portion of the withdrawal to the Account Value immediately prior to the Excess Income. Excess Income also will reduce the Protected Withdrawal Value by the same ratio as the reduction to the LIA Amount. Any withdrawals that are less than or equal to the LIA Amount (when eligible) but in excess of the Free Withdrawal amount available under this Annuity will not incur a CDSC.

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal has exceeded the LIA Amount.

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of more than the LIA Amount, you cannot
 request an amount that would result in cumulative withdrawals in that Annuity Year exceeding the LIA Amount.

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of more than the LIA Amount, the amount you request plus the amount of any applicable CDSC and/or tax withholding
 cannot cause cumulative withdrawals in that Annuity Year to exceed the LIA Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of more than the LIA Amount than if you request a gross withdrawal.

**Withdrawals are not required.** However, subsequent to the first Lifetime Withdrawal, the LIA Amount is not increased in subsequent Annuity Years if you decide not to take a withdrawal in an Annuity Year or take withdrawals in an Annuity Year that in total are less than the LIA Amount.

**Purchase Payments.** If you are eligible for the LIA Amount as described under "Eligibility Requirements for LIA Amount" and you make an additional Purchase Payment, the Annual Income Amount is increased by an amount obtained by applying the applicable percentage (4% for ages 45 – less than 59½; 5% for ages 59½ – 79; and 6% for ages 80 and older) to the Purchase Payment (including any associated Purchase Credits). The applicable percentage is based on the attained age of the designated life on the date of the first Lifetime Withdrawal after the benefit effective date.

(Note that for purposes of the age tiers used with this benefit, we deem the Annuitant to have reached age 59½ on the 183<sup>rd</sup> day after his/her 59<sup>th</sup> birthday).

The LIA Amount is increased by double the Annual Income Amount, if eligibility for LIA has been met. The Protected Withdrawal Value is increased by the amount of each Purchase Payment (including any associated Purchase Credits).

If the Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount (or, if eligible for LIA, the LIA Amount) is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount (or, if eligible for LIA, the LIA Amount) in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Except for Annuities that were issued in Oregon, effective September 14, 2012, we no longer permit additional Purchase Payments to Annuities with the Highest Daily Lifetime 6 Plus with LIA. For Annuities issued in Oregon, this restriction does not apply and you may continue to make additional Purchase Payments at this time.

**Step Ups.** If your Annual Income Amount is stepped up, your LIA Amount will be stepped up to equal double the stepped up Annual Income Amount.

**Guarantee Payments.** If your Unadjusted Account Value is reduced to zero as a result of cumulative withdrawals that are equal to or less than the LIA Amount when you are eligible, and there is still a LIA Amount available, we will make an additional payment for that Annuity Year equal to the remaining LIA Amount. If this were to occur, you are not permitted to make additional Purchase Payments to your Annuity. Thus, in that scenario, the remaining LIA Amount would be payable even though your Unadjusted Account Value was reduced to zero. In subsequent Annuity Years we make payments that equal the LIA Amount as described in this section. We will make payments until the death of the single designated life. Should the designated life no longer qualify for the LIA Amount (as described under "Eligibility Requirements for LIA Amount" above), the Annual Income Amount would continue to be available. Subsequent eligibility for the LIA Amount would require the completion of the 120 day elimination period as well as meeting the LIA conditions listed above under "Eligibility Requirements for LIA Amount". **To the extent that cumulative withdrawals in the current Annuity Year that reduce** **your Unadjusted Account Value to zero are more than the LIA Amount (except in the case of Required Minimum Distributions), Highest Daily** **Lifetime 6 Plus with LIA terminates, and no additional payments are made. However, if a withdrawal in the latter scenario was taken to satisfy** **a Required Minimum Distribution (as described above) under the Annuity, then the benefit will not terminate, and we will continue to pay the** **LIA Amount in subsequent Annuity Years until the death of the designated life.**

**Annuity Options.** In addition to the Highest Daily Lifetime 6 Plus annuity options described above, after the tenth anniversary of the benefit effective date ("Tenth Anniversary"), you may also request that we make annuity payments each year equal to the Annual Income Amount. In any year that you are eligible for the LIA Amount, we make annuity payments equal to the LIA Amount. If you would receive a greater payment by applying your Unadjusted Account Value to receive payments for life under your Annuity, we will pay the greater amount. Annuitization prior to the Tenth Anniversary will forfeit any present or future LIA Amounts. We will continue to make payments until the death of the designated life. If this option is elected, the Annual Income Amount and LIA Amount will not increase after annuity payments have begun.

------

[Back to **Table of Contents**](#TOC_956)

If you elect Highest Daily Lifetime 6 Plus with LIA, and never meet the eligibility requirements, you will not receive any additional payments based on the LIA Amount.

**Termination of Highest Daily Lifetime 6 Plus With LIA. The LIA benefit terminates upon the first to occur of the following:** 

**(I)** **your termination of the benefit;** 

**(II)** **your surrender of the Annuity;** 

**(III)** **our receipt of Due Proof of Death of the designated life;** 

**(IV)** **the Annuity Date, if Unadjusted Account Value remains on the Annuity Date and an election is made to commence** **annuity payments prior to the tenth Annuity anniversary;** 

**(V)** **the Valuation Day on which each of the Unadjusted Account Value and the Annual Income Amount is zero; or** 

**(VI)** **if you cease to meet our requirements for elections of this benefit or if we process a change that is not consistent** **with our allowed Owner, Annuitant or Beneficiary designations.** **\*** 

Highest Daily Lifetime 6 Plus with LIA uses the same predetermined mathematical formula used with Highest Daily Lifetime 6 Plus and Spousal Highest Daily Lifetime 6 Plus. See the pertinent discussion in Highest Daily Lifetime 6 Plus above.

\* Prior to terminating the benefit, we will send you written notice and provide you with an opportunity to change your designations.

***SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT (SHD6 PLUS)***

Spousal Highest Daily Lifetime 6 Plus Income Benefit (SHD6 Plus) is a lifetime guaranteed minimum withdrawal benefit, under which, subject to the terms of the benefit, we guarantee your ability to take a certain annual withdrawal amount for the lives of two individuals who are spouses. Spousal Highest Daily Lifetime 6 Plus is no longer available for election

If you have elected this benefit, the benefit guarantees, until the later death of two natural persons who are each other's spouses at the time of election of the benefit (the "designated lives", and each, a "designated life"), the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Unadjusted Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the lives of the designated lives, provided you have not made withdrawals of Excess Income that result in your Unadjusted Account Value being reduced to zero. We also permit you to designate the first withdrawal from your Annuity as a one-time "Non-Lifetime Withdrawal." You may wish to take a Non-Lifetime Withdrawal if you have an immediate need for access to your Account Value but do not wish to begin lifetime payments under the optional living benefit. All other withdrawals from your Annuity are considered a "Lifetime Withdrawal" under the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Unadjusted Account Value is reduced to zero (for any reason other than due to partial withdrawals of Excess Income). The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue the Spousal Highest Daily Lifetime 6 Plus benefit after the death of the first spouse. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. An integral component of Spousal Highest Daily Lifetime 6 Plus is the predetermined mathematical formula we employ that may periodically transfer your Unadjusted Account Value to and from the AST Investment Grade Bond Portfolio. See the section above entitled "How Highest Daily Lifetime 6 Plus Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio."

Spousal Highest Daily Lifetime 6 Plus is the spousal version of Highest Daily Lifetime 6 Plus. Currently, if you elect Spousal Highest Daily Lifetime 6 Plus and subsequently terminate the benefit, you may elect another living benefit, subject to our current rules. Please note that if you terminate Spousal Highest Daily Lifetime 6 Plus and elect another benefit, you lose the guarantees that you had accumulated under your existing benefit and will begin the new guarantees under the new benefit you elect based on your Unadjusted Account Value as of the date the new benefit becomes active. See "[<u>Termination of Existing Benefits and Election of New Benefits</u>](#achapter_11-sect1_2_956)" for details.

Spousal Highest Daily Lifetime 6 Plus must be elected based on two designated lives, as described below. The youngest designated life must have been at least 50 years old and the oldest designated life must have been at least 55 years old on the benefit effective date. We will not divide an Annuity or the Spousal Highest Daily Lifetime 6 Plus benefit due to a divorce. See "Election of and Designations under the Benefit" below for details. Spousal Highest Daily Lifetime 6 Plus is not available if you elect any other optional living benefit, although you may elect any optional death benefit.

As long as your Spousal Highest Daily Lifetime 6 Plus benefit is in effect, you must allocate your Unadjusted Account Value in accordance with the Permitted Variable Options and other Investment Option(s) available with this benefit. **For a more detailed description of the permitted Investment** **Options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956)**.**

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Unadjusted Account Value falls to zero,** **if any withdrawal is a withdrawal of Excess Income (as described below) and brings your Unadjusted Account Value to zero, your Annual** **Income Amount also would fall to zero, and the benefit and the Annuity then would terminate. In that scenario, no further amount would be** **payable under the Spousal Highest Daily Lifetime 6 Plus benefit. As to the impact of such a scenario on any other optional benefit you may** **have, please see the applicable section in this prospectus.** 

------

[Back to **Table of Contents**](#TOC_956)

You may also participate in the 6 or 12 Month Dollar Cost Averaging Program if you elect Spousal Highest Daily Lifetime 6 Plus, subject to the 6 or 12 Month DCA Program's rules. See the section of this prospectus entitled "[<u>Transfer and Rebalancing Programs - 6 or 12 Month Dollar Cost Averaging</u> <u>Program</u>](#chapter_9-sect1_3_956)" for details. No Long-Term Market Value Adjustment Option is permitted if you elect any optional benefit.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. The Protected Withdrawal Value is separate from your Unadjusted Account Value and not available as cash or a lump sum. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Unadjusted Account Value. On each Valuation Day thereafter until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraph.

The "Periodic Value" is initially equal to the Unadjusted Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. The Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

(1) the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 6% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment (including any associated Purchase Credits) made on the Current Valuation Day; and

(2) the
 Unadjusted Account Value on the current Valuation Day.

If you have not made a Lifetime Withdrawal on or before the 10<sup>th</sup> or 20<sup>th</sup> benefit anniversary, your Periodic Value on the 10<sup>th</sup> or 20<sup>th</sup> benefit anniversary of the benefit effective date is equal to the greater of:

(1) the
 Periodic Value described above or,

(2) the
 sum of (a), (b) and (c) proportionally reduced for any Non-Lifetime Withdrawal:

(a) 200% (on the 10<sup>th</sup> anniversary) or 400% (on the 20<sup>th</sup> anniversary) of the Unadjusted Account Value on the effective date of the benefit including any Purchase Payments (including any associated Purchase Credits) made on that day;

(b) 200% (on the 10<sup>th</sup> anniversary) or 400% (on the 20<sup>th</sup> anniversary) of all Purchase Payments (including any associated Purchase Credits) made within one year following the effective date of the benefit; and

(c) all Purchase Payments (including any associated Purchase Credits) made after one year following the effective date of the benefit.

In the rider for this benefit, as respects the preceding paragraph, we use the term "Guaranteed Base Value" to refer to the Unadjusted Account Value on the effective date of the benefit, plus the amount of any "adjusted" Purchase Payments made within one year after the effective date of the benefit. "Adjusted" Purchase Payments means Purchase Payments we receive, increased by any Purchase Credits applied to your Account Value in relation to Purchase Payments, and decreased by any fees or tax charges deducted from such Purchase Payments upon allocation to the Annuity.

This means that: if you do not take a Lifetime Withdrawal on or before the 10<sup>th</sup> Anniversary of the benefit, your Protected Withdrawal Value on the 10<sup>th</sup> Anniversary will be at least double (200%) your initial Protected Withdrawal Value established on the date of benefit election; or if you do not take a withdrawal on or before the 20<sup>th</sup> anniversary of the benefit, your Protected Withdrawal Value on the 20<sup>th</sup> anniversary will be at least quadruple (400%) of your initial Protected Withdrawal Value established on the date of benefit election. If you begin taking Lifetime Withdrawals prior to your 10<sup>th</sup> or 20<sup>th</sup> benefit anniversary, however, these automatic increases will not occur. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Unadjusted Account Value upon any step-up, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals (see below).

**Key Feature – Annual Income Amount under the Spousal Highest Daily Lifetime 6 Plus Benefit**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the younger designated life on the date of the first Lifetime Withdrawal after election of the benefit. The percentages are: 4% for ages 50-64, 5% for ages 65-84, and 6% for ages 85 and older. We use the age of the younger designated life even if that designated life is no longer a participant under the Annuity due to death or divorce. Under the Spousal Highest Daily Lifetime 6 Plus benefit, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year and also will reduce the Protected Withdrawal Value on a dollar-for-dollar basis. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount for any Annuity Year ("Excess Income"), your Annual Income Amount in subsequent years will

------

[Back to **Table of Contents**](#TOC_956)

be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Unadjusted Account Value immediately prior to such withdrawal (see examples of this calculation below). Excess Income also will reduce the Protected Withdrawal Value by the same ratio.

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal is a withdrawal of Excess Income.

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of Excess Income, you cannot request
 an amount that would result in cumulative withdrawals in that Annuity Year exceeding your Annual Income Amount.

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of Excess Income, the amount you request plus the amount of any applicable CDSC and/or tax withholding cannot
 cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of Excess Income than if you request a gross withdrawal.

You may use the systematic withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit and must be taken as a gross withdrawal.

Any Purchase Payment that you make subsequent to the election of Spousal Highest Daily Lifetime 6 Plus and subsequent to the first Lifetime Withdrawal will (i) immediately increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including any associated Purchase Credits) based on the age of the younger designated life at the time of the first Lifetime Withdrawal (the percentages are: 4% for ages 50-64, 5% for ages 65-84, and 6% for ages 85 and older), and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including any associated Purchase Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner. Except for Annuities that were issued in Oregon, effective September 14, 2012, we no longer permit additional Purchase Payments to Annuities with the Spousal Highest Daily Lifetime 6 Plus benefit. For Annuities issued in Oregon, this restriction does not apply and you may continue to make additional Purchase Payments at this time.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of this benefit. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Unadjusted Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the younger designated life on the Annuity Anniversary as of which the step-up would occur. The percentages are 4% for ages 50-64, 5% for ages 65-84, and 6% for ages 85 and older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. We will not automatically increase your Annual Income Amount solely as a result of your attaining a new age that is associated with a new age-based percentage. The Unadjusted Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary by performing a similar examination of the Unadjusted Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Unadjusted Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Spousal Highest Daily Lifetime 6 Plus has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Spousal Highest Daily Lifetime 6 Plus upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject. Any such increased charge will not be greater than the maximum charge set forth in the table entitled "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)".

If you are enrolled in a systematic withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount. You must notify us in order to increase the withdrawal amount of any systematic withdrawal program.

------

[Back to **Table of Contents**](#TOC_956)

The Spousal Highest Daily Lifetime 6 Plus benefit does not affect your ability to take withdrawals under your Annuity, or limit your ability to take partial withdrawals that exceed the Annual Income Amount. Under Spousal Highest Daily Lifetime 6 Plus, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carryover the unused portion of the Annual Income Amount to subsequent Annuity Years.

Because both the Protected Withdrawal Value and Annual Income Amount are determined in a way that is not solely related to Unadjusted Account Value, it is possible for the Unadjusted Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Spousal Highest Daily Lifetime 6 Plus benefit or any other fees and charges under the Annuity. Assume the following for all three examples:

• The
 Issue Date is November 1, 2010

• The
 Spousal Highest Daily Lifetime 6 Plus benefit is elected on August 1, 2011

• The
 younger designated life was 70 years old when he/she elected the Spousal Highest Daily Lifetime 6 Plus benefit.

• The
 first withdrawal is a Lifetime Withdrawal

**Example of Dollar-for-Dollar Reductions**

On October 24, 2011, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the younger designated life is between the ages of 65 and 84 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including October 31, 2011) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500).

**Example of Proportional Reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on October 27, 2011 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $1,500 reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of Excess Income to the Account Value immediately prior to the Excess Income. (Note that if there were other withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before Lifetime Withdrawal | $118000.00 |
|  Amount of "non" Excess Income | $3500.00 |
|  Account Value immediately before Excess Income of $1,500 | $114500.00 |
|  Excess Income amount | $1500.00 |
|  Ratio ($1,500/$114,500 = 1.31%) | 1.31% |
|  Annual Income Amount | $6000.00 |
|  1.31% Reduction in Annual Income Amount | $78.60 |
|  Annual Income Amount for future Annuity Years | $5921.40 |

---

**Example** **of Highest Daily Auto Step-Up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000

• The
 Unadjusted Account Value on July 1 is $239,000

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Spousal Highest Daily Lifetime 6 Plus. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_8_956)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described earlier in this section will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with the Spousal Highest Daily Lifetime 6 Plus benefit. You must tell us at the time you take the partial withdrawal if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under the Spousal Highest Daily Lifetime 6 Plus benefit. If you do not designate the withdrawal as a Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Annual Income Amount, which is based on your Protected Withdrawal Value. Once you elect the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken. If you do not take a Non-Lifetime Withdrawal before beginning Lifetime Withdrawals, you lose the ability to take it.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value. It will also proportionally reduce the Periodic Value guarantees on the tenth and twentieth anniversaries of the benefit effective date (see description in "Key Feature – Protected Withdrawal Value," above). It will reduce both by the percentage the total withdrawal amount (including any applicable CDSC and any applicable Market Value Adjustment) represents of the then current Account Value immediately prior to the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a systematic withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first withdrawal under the program will be considered a Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit. Assume the following:

• The
 Issue Date is December 1, 2010

• The
 Spousal Highest Daily Lifetime 6 Plus benefit is elected on September 1, 2011

• The
 Unadjusted Account Value at benefit election was $105,000

• The
 younger designated life was 70 years old when he/she elected the Spousal Highest Daily Lifetime 6 Plus benefit

• No
 previous withdrawals have been taken under the Spousal Highest Daily Lifetime 6 Plus benefit

On October 3, 2011, the Protected Withdrawal Value is $125,000, the 10<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000 and the 20<sup>th</sup> benefit year minimum Periodic Value guarantee is $420,000, and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on October 3, 2011 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with the Spousal Highest Daily Lifetime 6 Plus benefit will be reduced by the ratio of the total withdrawal amount to the Account Value just prior to the withdrawal being taken.

------

[Back to **Table of Contents**](#TOC_956)

**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal amount | $15000 |
|  Divided by Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375 |
|  10<sup>th</sup> benefit year Minimum Periodic Value | $183750 |
|  20<sup>th</sup> benefit year Minimum Periodic Value | $367500 |

---

**Required Minimum Distributions**

See the sub-section entitled "[<u>Required Minimum Distributions</u>](#chapter_13-sect1_7_956)" in the section above concerning Highest Daily Lifetime 6 Plus for a discussion of the relationship between the RMD amount and the Annual Income Amount.

**Benefits under Spousal Highest Daily Lifetime 6 Plus** 

• To
 the extent that your Unadjusted Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that
 are less than or equal to the Annual Income Amount, and amounts are still payable under Spousal Highest Daily Lifetime 6 Plus, we will
 make an additional payment, if any, for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year. Thus, in that
 scenario, the remaining Annual Income Amount would be payable even though your Unadjusted Account Value was reduced to zero. In
 subsequent Annuity Years we make payments that equal the Annual Income Amount as described in this section. We will make payments
 until the death of the first of the designated lives to die, and will continue to make payments until the death of the second designated
 life. After the Unadjusted Account Value is reduced to zero, you are not permitted to make additional Purchase Payments to your
 Annuity. **To the extent that cumulative withdrawals in the Annuity Year that reduced your Unadjusted Account Value to zero** **are more than the Annual Income Amount, the Spousal Highest Daily Lifetime 6 Plus benefit terminates, we will make no further** **payments of the Annual Income Amount and no additional Purchase Payments will be permitted. However, if a partial withdrawal** **in the latter scenario was taken to satisfy a Required Minimum Distribution (as described above) under the Annuity then the** **benefit will not terminate, and we will continue to pay the Annual Income Amount in subsequent Annuity Years until the death of** **the second designated life.** 

• Please
 note that if your Unadjusted Account Value is reduced to zero, all payments in each Annuity Year subsequent to the Annuity Year your
 Account Value is reduced to zero will be treated as annuity payments. Also, any Death Benefit will terminate if withdrawals reduce your
 Unadjusted Account Value to zero. This means that any Death Benefit is terminated and no Death Benefit is payable if your Unadjusted
 Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal
 to, your Annual Income Amount.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

(1) apply
 your Unadjusted Account Value, less any applicable state required premium tax, to any annuity option available; or

(2) request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 We will make payments until the first of the designated lives to die, and will continue to make payments until the death of the
 second designated life. If, due to death of a designated life or divorce prior to Annuitization, only a single designated life remains, then annuity payments
 will be made as a life annuity for the lifetime of the designated life. We must receive your request in a form acceptable
 to us at our office. If applying your Unadjusted Account Value, less any applicable tax charges, to our current life only (or joint
 life, depending on the number of designated lives remaining) annuity payment rates results in a higher annual payment, we will give
 you the higher annual payment.

• In
 the absence of an election when mandatory annuity payments are to begin, we currently make annual annuity payments as a joint and survivor
 or single (as applicable) life fixed annuity with eight payments certain, by applying the greater of the annuity rates then currently available or the
 annuity rates guaranteed in your Annuity. We reserve the right at any time to increase or decrease the certain period in order
 to comply with the Code (e.g., to shorten the period certain to match life expectancy under applicable IRS tables). The amount that will
 be applied to provide such annuity payments will be the greater of:

(1) the
 present value of the future Annual Income Amount payments (if no Lifetime Withdrawal was ever taken, we will calculate the Annual
 Income Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin). Such present value
 will be calculated using the greater of the joint and survivor or single (as applicable) life fixed annuity rates then currently available
 or the joint and survivor or single (as applicable) life fixed annuity rates guaranteed in your Annuity; and

(2) the
 Unadjusted Account Value.

------

[Back to **Table of Contents**](#TOC_956)

**Other Important Considerations**

• Withdrawals
 under the Spousal Highest Daily Lifetime 6 Plus benefit are subject to all of the terms and conditions of the Annuity, including any
 applicable CDSC for the Non-Lifetime Withdrawal as well as partial withdrawals that exceed the Annual Income Amount. If you have an
 active systematic withdrawal program running at the time you elect this benefit, the first systematic withdrawal that processes after your election of
 the benefit will be deemed a Lifetime Withdrawal. Withdrawals made while the Spousal Highest Daily Lifetime 6 Plus Benefit
 is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. Any withdrawals made under
 the benefit will be taken on a proportional basis from the Variable Options (including the AST Investment Grade Bond Portfolio) and the
 DCA Market Value Adjustment Options. If you have an active systematic withdrawal program running at the time you elect this benefit, the
 program must withdraw funds on a proportional basis.

• Any
 Lifetime Withdrawal that does not cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount is not subject
 to a CDSC, even if the total amount of such withdrawals in any Annuity Year exceeds the maximum Free Withdrawal amount. For example,
 if your Free Withdrawal amount is $10,000 and your Annual Income Amount is $11,000, withdrawals of your entire Annual Income
 Amount in any Annuity Year would not trigger a CDSC. If you withdrew $12,000, however, $1,000 would be subject to a CDSC.

• You
 should carefully consider when to begin taking Lifetime Withdrawals. If you begin taking withdrawals early, you may maximize the time
 during which you may take Lifetime Withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals
 reduce your Unadjusted Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss
 with your financial professional when it may be appropriate for you to begin taking Lifetime Withdrawals.

• You
 cannot allocate Purchase Payments or transfer Unadjusted Account Value to or from the AST Investment Grade Bond Portfolio. **A** **summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **.** In addition, you can find a copy of the AST
 Investment Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>.

• Transfers
 to and from the elected Variable Options, the DCA Market Value Adjustment Options, and the AST Investment Grade Bond Portfolio
 triggered by the Spousal Highest Daily Lifetime 6 Plus mathematical formula will not count toward the maximum number of free transfers
 allowable under an Annuity.

• Upon
 inception of the benefit, 100% of your Unadjusted Account Value must be allocated to the Permitted Variable Options. We may amend
 the Permitted Variable Options from time to time. Changes to Permitted Variable Options, or to the requirements as to how you may
 allocate your Unadjusted Account Value with this benefit, may apply to current participants in the benefit. To the extent that changes apply to current
 participants in the benefit, they will apply only upon re-allocation of Unadjusted Account Value, or to any additional Purchase
 Payments that are made after the changes go into effect. That is, we will not require such current participants to re-allocate Unadjusted
 Account Value to comply with any new requirements.

• Any
 Death Benefit, including any optional Death Benefit that you elected, will terminate if withdrawals taken under Spousal Highest Daily Lifetime 6 Plus reduce
 your Unadjusted Account Value to zero. This means that any Death Benefit is terminated and no Death Benefit is payable
 if your Unadjusted Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or
 less than or equal to, your Annual Income Amount. (See " [<u>Triggers for Payment of the Death Benefit</u>](#chapter_11-sect1_9_956) "
 for more information.)

**Charge for Spousal Highest Daily Lifetime 6 Plus**

The maximum charge for Spousal Highest Daily Lifetime 6 Plus is 1.50% annually of the greater of the Unadjusted Account Value and Protected Withdrawal Value. As discussed in "Highest Daily Auto Step-Up" above, we may increase the fee upon a step-up under this benefit. We deduct this charge on quarterly anniversaries of the benefit effective date, based on the values on the last Valuation Day prior to the quarterly anniversary. Thus, we deduct, on a quarterly basis, 0.375% of the greater of the prior Valuation Day's Unadjusted Account Value, or the prior Valuation Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options, including the AST Investment Grade Bond Portfolio. You will begin paying this charge as of the effective date of the benefit even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments.

If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated Purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for the Spousal Highest Daily Lifetime 6 Plus benefit would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, withdrawals may reduce the Unadjusted Account Value to zero. If the Unadjusted Account Value is reduced to zero as a result of a partial withdrawal that is not a withdrawal of Excess Income and the Annual Income Amount is greater than zero, we will make payments under the benefit.

------

[Back to **Table of Contents**](#TOC_956)

**Election of and Designations under the Benefit**

Spousal Highest Daily Lifetime 6 Plus is no longer available. Spousal Highest Daily Lifetime 6 Plus could only be elected based on two designated lives. Designated lives must have been natural persons who are each other's spouses at the time of election of the benefit. Spousal Highest Daily Lifetime 6 Plus only could be elected if the Owner, Annuitant, and Beneficiary designations were as follows:

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the sole Beneficiary is the Owner's spouse. The younger
 Owner/Annuitant and the Beneficiary must be at least 50 years old and the older must be at least 55 years old at the time of election;
 or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The Beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. The younger Owner must be at least 50 years old and the older Owner
 must be at least 55 years old at the time of election; or

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the Beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. The younger of the Annuitant and the Contingent Annuitant
 must be at least 50 years old and the older must be at least 55 years old at the time of election.

We do not permit a change of Owner under this benefit, except as follows: (a) if one Owner dies and the surviving spousal Owner assumes the Annuity, or (b) if the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of Beneficiary designations under this benefit, however if the Beneficiary is changed, the benefit may not be eligible to be continued upon the death of the first designated life. If the designated lives divorce, the Spousal Highest Daily Lifetime 6 Plus benefit may not be divided as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity appoint a new designated life upon re-marriage. Our current administrative procedure is to treat the division of an Annuity as a withdrawal from the existing Annuity. Any applicable CDSC will apply to such a withdrawal. The non-Owner spouse may then decide whether s/he wishes to use the withdrawn funds to purchase a new Annuity, subject to the rules that are current at the time of purchase.

If you are currently participating in a systematic withdrawal program, amounts withdrawn under the program must be taken on a proportional basis from your Annuity's Variable Options (i.e., in direct proportion to the proportion that each such Variable Option bears to your total Account Value) in order for you to be eligible for the benefit. Thus, you may not elect Spousal Highest Daily Lifetime 6 Plus so long as you participate in a systematic withdrawal program in which withdrawals are not taken on a proportional basis.

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and certain restrictions on re-election may apply.

**The benefit automatically terminates upon the first to occur of the following:**

**(I)** **upon our receipt of Due Proof of Death of the first designated life, if the surviving spouse opts to take the death** **benefit under the Annuity (rather than continue the Annuity) or if the surviving spouse is not an eligible designated** **life;** 

**(II)** **upon the death of the second designated life;** 

**(III)** **your termination of the benefit;** 

**(IV)** **your surrender of the Annuity;** 

**(V)** **the Latest Annuity Date or your election to begin receiving annuity payments (although if you have elected to take** **annuity payments in the form of the Annual Income Amount, we will continue to pay the Annual Income Amount);** 

**(VI)** **both the Unadjusted Account Value and Annual Income amount equal zero; or** 

**(VII)** **you cease to meet our requirements as described in "Election of and Designations under the Benefit" above or if we** **process a requested change that is not consistent with our allowed Owner, Annuitant or Beneficiary designations.** **\*** 

\* Prior to terminating the benefit, we will send you written notice and provide you with an opportunity to change your designations.

"Due Proof of Death" is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claim forms from at least one Beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary.

Upon termination of Spousal Highest Daily Lifetime 6 Plus other than upon the death of the second Designated Life or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. This final charge will be deducted even if it results in the Unadjusted Account Value falling below the Account Value Floor. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options, and (ii) unless you are participating in an asset allocation program (i.e., Custom Portfolios Program, or 6 or 12 Month DCA Program for which we are providing

------

[Back to **Table of Contents**](#TOC_956)

administrative support), transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If, prior to the transfer from the AST Investment Grade Bond Portfolio, the Unadjusted Account Value in the Variable Options is zero, we will transfer such amounts to the AST Government Money Market Variable Option.

How Spousal Highest Daily Lifetime 6 Plus Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio

See "How Highest Daily Lifetime 6 Plus Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio" above for information regarding this component of the benefit.

**Additional Tax Considerations**

Please see the Additional Tax Considerations section under Highest Daily Lifetime 6 Plus above.

**FORMULA FOR HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT, HIGHEST DAILY**<br>**LIFETIME 6 PLUS INCOME BENEFIT WITH LIFETIME INCOME ACCELERATOR, AND**<br>**SPOUSAL HIGHEST DAILY LIFETIME 6 PLUS INCOME BENEFIT**

**Please see** [**<u>Appendix I</u>**](#chapter_26-sect1_1_956)**: "Formula for Highest Daily Lifetime Income v2.1 Suite, Highest Daily Lifetime Income 2.0 Suite, Highest Daily Lifetime** **Income Suite and Highest Daily Lifetime 6 Plus Suite of Living Benefits."**

------

[Back to **Table of Contents**](#TOC_956)

**APPENDIX D – HIGHEST DAILY LIFETIME INCOME, HIGHEST DAILY LIFETIME INCOME**<br>**WITH LIA AND SPOUSAL HIGHEST DAILY LIFETIME INCOME**<br>**– NO LONGER AVAILABLE FOR NEW ELECTIONS**

------

These benefits were offered January 24, 2011 to August 19, 2012.

**Except for Annuities that were issued in Oregon, effective December 31, 2020, we are no longer accepting Purchase Payments for Annuities** **that have these benefits.**

**Notwithstanding the limit discussed above, we may further limit, suspend or reject any additional Purchase Payment at any time, but would** **do so only on a non-discriminatory basis. Circumstances where we may limit, restrict, suspend or reject additional Purchase Payments** **include, but are not limited to, the following:**

• **if we determine that, as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual** **Income Amount is being increased in an unintended fashion (among the factors we will use in making a determination as to** **whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional** **Purchase Payment(s));** 

• **if we are not then offering this benefit for new issues; or** 

• **if we are offering a modified version of this benefit for new issues.** 

***HIGHEST DAILY LIFETIME INCOME BENEFIT***

Highest Daily Lifetime Income is a lifetime guaranteed minimum withdrawal benefit, under which, subject to the terms of the benefit, we guarantee your ability to take a certain annual withdrawal amount for life. We reserve the right, in our sole discretion, to cease offering this benefit for new elections, at any time.

We offer a benefit that guarantees until the death of the single designated life (the Annuitant) the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Unadjusted Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the rest of your life provided that you do not take withdrawals of Excess Income that result in your Unadjusted Account Value being reduced to zero. We also permit you to designate the first withdrawal from your Annuity as a one-time "Non-Lifetime Withdrawal". You may wish to take a Non-Lifetime Withdrawal if you have an immediate need for access to your Account Value but do not wish to begin lifetime payments under the optional living benefit. All other partial withdrawals from your Annuity are considered a "Lifetime Withdrawal" under the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Unadjusted Account Value is reduced to zero (for any reason other than due to partial withdrawals of Excess Income). Highest Daily Lifetime Income may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You are not required to take withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. An integral component of Highest Daily Lifetime Income is the predetermined mathematical formula we employ that may periodically transfer your Unadjusted Account Value to and from the AST Investment Grade Bond Portfolio. See the section below entitled "How Highest Daily Lifetime Income Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio."

The income benefit under Highest Daily Lifetime Income currently is based on a single "designated life" who is at least 45 years old on the benefit effective date. Highest Daily Lifetime Income is not available if you elect any other optional living benefit, although you may elect any optional death benefit. As long as your Highest Daily Lifetime Income is in effect, you must allocate your Unadjusted Account Value in accordance with the Permitted Variable Options and other Investment Option(s) available with this benefit. **For a more detailed description of the permitted Investment Options,** **see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956)**.** 

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Unadjusted Account Value falls to zero,** **if any withdrawal is a withdrawal of Excess Income (as described below) and brings your Unadjusted Account Value to zero, your Annual** **Income Amount also would fall to zero, and the benefit and the Annuity then would terminate. In that scenario, no further amount would be** **payable under Highest Daily Lifetime Income. As to the impact of such a scenario on any other optional benefit you may have, please see the** **applicable section in this prospectus. For example, if the Annuity terminates in this scenario, you would no longer have any optional death** **benefit that you may have elected (see the optional death benefits section of this prospectus).**

You may also participate in the 6 or 12 Month DCA Program if you elect Highest Daily Lifetime Income, subject to the 6 or 12 Month DCA Program's rules. See the section of this prospectus entitled "[<u>Transfer and Rebalancing Programs - 6 or 12 Month Dollar Cost Averaging Progam</u>](#chapter_9-sect1_3_956)" for details. No Long-Term Market Value Adjustment Option is permitted if you elect any optional benefit.

------

[Back to **Table of Contents**](#TOC_956)

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. The Protected Withdrawal Value is separate from your Unadjusted Account Value and not available as cash or a lump sum withdrawal. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Unadjusted Account Value. On each Valuation Day thereafter, until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraphs.

The "Periodic Value" is initially equal to the Unadjusted Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. The Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

(1) the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 5% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment (including any associated Purchase Credits) made on the Current Valuation Day; and

(2) the
 Unadjusted Account Value on the current Valuation Day.

If you have not made a Lifetime Withdrawal on or before the 12<sup>th</sup> Anniversary of the effective date of the benefit, your Periodic Value on the 12<sup>th</sup> Anniversary of the benefit effective date is equal to the greater of:

(1) the
 Periodic Value described above, or

(2) the
 sum of (a), (b) and (c) below proportionally reduced for any Non-Lifetime Withdrawals:

(a) 200% of the Unadjusted Account Value on the effective date of the benefit including any Purchase Payments (including any associated Purchase Credits) made on that day;

(b) 200% of all Purchase Payments (including any associated Purchase Credits) made within one year following the effective date of the benefit; and

(c) all Purchase Payments (including any associated Purchase Credits) made after one year following the effective date of the benefit.

This means that if you do not take a Lifetime Withdrawal on or before the 12<sup>th</sup> benefit anniversary, your Protected Withdrawal Value on the 12<sup>th</sup> benefit anniversary will be at least double (200%) your initial Protected Withdrawal Value established on the date of benefit election. If you begin taking withdrawals prior to your 12<sup>th</sup> benefit anniversary, however, this automatic increase will not occur. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Unadjusted Account Value upon any step-up, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals (see the examples that begin immediately prior to the sub-heading below entitled "Example of dollar-for-dollar reductions").

**Key Feature – Annual Income Amount under Highest Daily Lifetime Income**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years unless you take a withdrawal of Excess Income, as described below. The percentage initially depends on the age of the Annuitant on the date of the first Lifetime Withdrawal. The percentages are: 3% for ages 45-54; 4% for ages 55 to less than 59½; 5% for ages 59½ to 84, and 6% for ages 85 or older. Under Highest Daily Lifetime Income, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year and also will reduce the Protected Withdrawal Value on a dollar-for-dollar basis. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Excess Income also will reduce the Protected Withdrawal Value by the same ratio.

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal is a withdrawal of Excess Income.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of Excess Income, you cannot request
 an amount that would result in cumulative withdrawals in that Annuity Year exceeding your Annual Income Amount.

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of Excess Income, the amount you request plus the amount of any applicable CDSC and/or tax withholding cannot
 cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of Excess Income than if you request a gross withdrawal.

You may use the systematic withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit and must be taken as a gross withdrawal.

Any Purchase Payment that you make subsequent to the election of Highest Daily Lifetime Income and subsequent to the first Lifetime Withdrawal will (i) immediately increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including any associated Purchase Credits) based on the age of the Annuitant at the time of the first Lifetime Withdrawal (the percentages are: 3% for ages 45 -54; 4% for ages 55 to less than 59½; 5% for ages 59½ to 84, and 6% for ages 85 or older) and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including any associated Purchase Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a non-discriminatory manner.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of Highest Daily Lifetime Income. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Auto Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Unadjusted Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the Annuitant on the Annuity Anniversary as of which the step-up would occur. The percentages are: 3% for ages 45-54; 4% for ages 55 to less than 59½; 5% for ages 59½-84, and 6% for ages 85 or older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. We will not automatically increase your Annual Income Amount solely as a result of your attaining a new age that is associated with a new age-based percentage. The Unadjusted Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. All daily valuations and annual step-ups will only occur on a Valuation Day. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Unadjusted Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Unadjusted Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Highest Daily Lifetime Income has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Highest Daily Lifetime Income upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should consult with your financial professional and carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject. Any such increased charge will not be greater than the maximum charge set forth in the table entitled "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)."

If you are enrolled in a systematic withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount. You must notify us in order to increase the withdrawal amount of any systematic withdrawal program.

Highest Daily Lifetime Income does not affect your ability to take partial withdrawals under your Annuity, or limit your ability to take partial withdrawals that exceed the Annual Income Amount. Under Highest Daily Lifetime Income, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in any Annuity Year are less than the Annual Income Amount, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years. If your cumulative Lifetime Withdrawals in an Annuity Year exceed the Annual Income Amount, your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules).

------

[Back to **Table of Contents**](#TOC_956)

Because both the Protected Withdrawal Value and Annual Income Amount are determined in a way that is not solely related to Unadjusted Account Value, it is possible for the Unadjusted Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime Income or any other fees and charges under the Annuity. Assume the following for all three examples:

• The
 Issue Date is November 1, 2011

• Highest
 Daily Lifetime Income is elected on August 1, 2012

• The
 Annuitant was 70 years old when he/she elected Highest Daily Lifetime Income

• The
 first withdrawal is a Lifetime Withdrawal

**Example of dollar-for-dollar reductions**

On October 24, 2012, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the designated life is between the ages of 59½ and 84 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including October 31, 2012) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500).

**Example of proportional reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on October 29, 2012 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $1,500 reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the Excess Income to the Account Value immediately prior to the Excess Income. (Note that if there are other future withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before Lifetime withdrawal | $118000.00 |
|  Amount of "non" Excess Income | $3500.00 |
|  Account Value immediately before Excess Income of $1,500 | $114500.00 |
|  Excess Income amount | $1500.00 |
|  Ratio ($1,500/$114,500 = 1.31%) | 1.31% |
|  Annual Income Amount | $6000.00 |
|  1.31% Reduction in Annual Income Amount | $78.60 |
|  Annual Income Amount for Future Annuity Years | $5921.40 |

---

**Example** **of Highest Daily Auto Step-up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

------

[Back to **Table of Contents**](#TOC_956)

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Highest Daily Lifetime Income. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_8_956)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described earlier in this section will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with Highest Daily Lifetime Income. You must tell us at the time you take the withdrawal if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under Highest Daily Lifetime Income. If you do not designate the withdrawal as a Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Annual Income Amount, which is based on your Protected Withdrawal Value. Once you elect to take the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken. If you do not take a Non-Lifetime Withdrawal before beginning Lifetime Withdrawals, you lose the ability to take it.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value. It will also proportionally reduce the Periodic Value guarantee on the twelfth anniversary of the benefit effective date (see description in "Key Feature – Protected Withdrawal Value," above). It will reduce both by the percentage the total withdrawal amount (including any applicable CDSC) represents of the then current Account Value immediately prior to the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a systematic withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first withdrawal under the program will be considered a Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (Proportional Reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit.

Assume the following:

• The
 Issue Date is December 1

• Highest Daily Lifetime Income is elected on September 4

• The Unadjusted Account Value at benefit election was $105,000

• The
 Annuitant was 70 years old when he/she elected Highest Daily Lifetime Income

• No
 previous withdrawals have been taken under Highest Daily Lifetime Income

On October 3, the Protected Withdrawal Value is $125,000, the 12<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000, and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on October 3 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with Highest Daily Lifetime Income will be reduced by the ratio of the total withdrawal amount to the Account Value just prior to the withdrawal being taken.

------

[Back to **Table of Contents**](#TOC_956)

**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal amount | $15000 |
|  Divided by Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio | (12.5%) |
|  Protected Withdrawal Value | $109375 |
|  12<sup>th</sup> benefit year Minimum Periodic Value | $183750 |

---

**Required Minimum Distributions**

Required Minimum Distributions ("RMD") for this Annuity must be taken by April 1<sup>st</sup> in the year following the date you turn the applicable age and by December 31<sup>st</sup> for subsequent calendar years. See "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for more information about the applicable age and further discussions of RMDs. If the annual RMD amount is greater than the Annual Income Amount, a withdrawal of the RMD amount will not be treated as a withdrawal of Excess Income, as long as the RMD amount is calculated by us for this Annuity and administered under a program we support each calendar year. If you are not participating in an RMD withdrawal program each calendar year, you can alternatively satisfy the RMD amount without it being treated as a withdrawal of Excess Income as long as the below rules are applied.

A "Calendar Year" runs from January 1 to December 31 of that year.

Withdrawals made from the Annuity during an Annuity Year to meet the RMD provisions of the Code will not be treated as withdrawals of Excess Income if they are taken during one Calendar Year.

If Lifetime Withdrawals are taken over two Calendar Years, the amount that will not be treated as a withdrawal of Excess Income is:

• the
 remaining Annual Income Amount for that Annuity Year; plus

• the
 second Calendar Year's RMD amount minus the Annual Income Amount (the result of which cannot be less than zero).

**Example**

The following example is purely hypothetical and intended to illustrate the scenario described above. Note that withdrawals must comply with all IRS guidelines in order to satisfy the RMD for the current calendar year.

---

| | | |
|:---|:---|:---|
|  **First Calendar Year** | **Annuity Year** | **Second Calendar Year** |
|  01/01/2021 to 12/31/2021 | 06/01/2021 to 05/31/2022 | 01/01/2022 to 12/31/2022 |

---

Assume the following:

• RMD
 Amount for Both Calendar Years = $6,000;

• Annual
 Income Amount = $5,000; and

• A
 withdrawal of $2,000 was taken on 07/01/2021 (during the First Calendar Year) resulting in a remaining Annual Income Amount for the Annuity
 Year of $3,000.

The amount that can be taken between 01/03/2022 and 05/31/2022 without creating a withdrawal of Excess Income is $4,000. Here is the calculation:

• The
 remaining Annual Income for that Annuity Year ($3,000); plus

• The
 Second Calendar Year's RMD Amount minus the Annual Income Amount ($6,000 - $5,000 = $1,000).

If the $4,000 is withdrawn during the Annuity Year, the remaining Annual Income Amount will be $0 and the remaining RMD amount for the Second Calendar Year ($2,000) may be taken in the next Annuity Year beginning on 06/01/2022.

Other Important Information

• If,
 in any Annuity Year, your RMD amount is less than your Annual Income Amount, any withdrawals in excess of the Annual Income Amount
 will be treated as Excess Income.

• If
 you do not comply with the rules described above, any withdrawal that exceeds the Annual Income Amount will be treated as a withdrawal
 of Excess Income, which will reduce your Annual Income Amount in future Annuity Years. This may include a situation where you
 comply with the rules described above and then decide to take additional withdrawals after satisfying your RMD from the Annuity.

• If
 you take a partial withdrawal to satisfy RMD and designate that withdrawal as a Non-Lifetime Withdrawal, please note that all Non-Lifetime
 Withdrawal provisions will apply.

------

[Back to **Table of Contents**](#TOC_956)

**Benefits Under Highest Daily Lifetime Income**

• To
 the extent that your Unadjusted Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that
  are less than or equal to the Annual Income Amount, and amounts are still payable under Highest Daily Lifetime Income, we will make an  additional
 payment, if any, for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year. Thus, in that scenario,
 the  remaining Annual Income Amount would be payable even though your Unadjusted Account Value was reduced to zero. In subsequent
 Annuity  Years we make payments that equal the Annual Income Amount as described in this section. We will make payments until
 the death of the  single designated life. After the Unadjusted Account Value is reduced to zero, you will not be permitted to make additional Purchase
 Payments  to your Annuity. **To the extent that cumulative partial withdrawals in an Annuity Year exceed the** **Annual Income Amount ("Excess  Income") and reduce your Unadjusted Account Value to zero, Highest Daily Lifetime Income** **terminates, we will make no further  payments of the Annual Income Amount and no additional Purchase Payments will be** **permitted. However, if a partial withdrawal in  the latter scenario was taken to satisfy a Required Minimum Distribution (as** **described above) under the Annuity, then the benefit  will not terminate, and we will continue to pay the Annual Income Amount** **in subsequent Annuity Years until the death of the  designated life.** 

• Please
 note that if your Unadjusted Account Value is reduced to zero, all payments in each Annuity Year subsequent to the Annuity Year your
 Account Value is reduced to zero will be treated as annuity payments. Also, any Death Benefit will terminate if withdrawals reduce your
 Unadjusted Account Value to zero. This means that any Death Benefit is terminated and no Death Benefit is payable if your Unadjusted
 Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal
 to, your Annual Income Amount.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
  Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

• (1) apply
 your Unadjusted Account Value, less any applicable tax charges, to any annuity option available; or

(2) request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 If this option is elected, the Annual Income Amount will not increase after annuity payments have begun. We will make payments
 until the death of the single designated life. We must receive your request in a form acceptable to us at our Service Center.
 If applying your Unadjusted Account Value, less any applicable tax charges, to the life-only annuity payment rates results in a
 higher annual payment, we will give you the higher annual payment.

• In
 the absence of an election when mandatory annuity payments are to begin we currently make annual annuity payments in the form of a single
 life fixed annuity with eight payments certain, by applying the greater of the annuity rates then currently available or the annuity rates
  guaranteed in your Annuity. We reserve the right at any time to increase or decrease the period certain in order to comply with
 the Code (e.g.,  to
 shorten the period certain to match life expectancy under applicable IRS tables). The amount that will be applied to provide such
 annuity  payments will be the greater of:

(1) the
 present value of the future Annual Income Amount payments (if no Lifetime Withdrawal was ever taken, we will calculate the
  Annual Income Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin). Such present
  value will be calculated using the greater of the single life fixed annuity rates then currently available or the single life fixed annuity  rates
 guaranteed in your Annuity; and

(2) the
 Unadjusted Account Value.

**Other Important Considerations**

• Withdrawals
 under Highest Daily Lifetime Income are subject to all of the terms and conditions of the Annuity, including any applicable CDSC
 for the Non-Lifetime Withdrawal as well as partial withdrawals that exceed the Annual Income Amount. If you have an active systematic
 withdrawal program running at the time you elect this benefit, the first systematic withdrawal that processes after your election of
 the benefit will be deemed a Lifetime Withdrawal. Withdrawals made while Highest Daily Lifetime Income is in effect will be treated, for tax purposes, in
 the same way as any other withdrawals under the Annuity. Any withdrawals made under the benefit will be taken on a proportional
 basis from the Variable Options (including the AST Investment Grade Bond Portfolio) and the DCA Market Value Adjustment Options.
 If you have an active systematic withdrawal program running at the time you elect this benefit, the program must withdraw funds on
 a proportional basis.

• Any
 Lifetime Withdrawal that does not cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount is not subject
 to a CDSC, even if the total amount of such withdrawals in any Annuity Year exceeds the maximum Free Withdrawal amount. For example,
 if your Free Withdrawal amount is $10,000 and your Annual Income Amount is $11,000, withdrawals of your entire Annual Income
 Amount in any Annuity Year would not trigger a CDSC. If you withdrew $12,000, however, $1,000 would be subject to a CDSC.

• You
 should carefully consider when to begin taking Lifetime Withdrawals. If you begin taking withdrawals early, you may maximize the time
 during which you may take Lifetime Withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals
 reduce your Unadjusted Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss
 with your financial professional when it may be appropriate for you to begin taking Lifetime Withdrawals.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• You
 cannot allocate Purchase Payments or transfer Unadjusted Account Value to or from the AST Investment Grade Bond Portfolio. **A** **summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) . You
 can find a copy of the AST Investment
 Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>.

• Transfers
 to and from the Permitted Variable Options, the DCA Market Value Adjustment Options, and the AST Investment Grade Bond Portfolio
 triggered by the predetermined mathematical formula will not count toward the maximum number of free transfers allowable under
 an Annuity.

• Upon
 election of the benefit, 100% of your Unadjusted Account Value must be allocated to the Permitted Variable Options. We may amend the
 Permitted Variable Options from time to time. Changes to the Permitted Variable Options, or to the requirements as to how you may allocate
 your Account Value with this benefit, will apply to new elections of the benefit and may apply to current participants in the benefit. To the extent that
 changes apply to current participants in the benefit, they will only apply upon re-allocation of Account Value, or upon addition
 of subsequent Purchase Payments. That is, we will not require such current participants to re-allocate Account Value to comply with
 any new requirements.

• If
 you elected this benefit, you may be required to reallocate to different Variable Options if you are currently invested in non-permitted Variable Options.
 On the Valuation Day we receive your request in Good Order, we will (i) sell Units of the non-permitted Variable Options and
 (ii) invest the proceeds of those sales in the Variable Options that you have designated. During this reallocation process, your Unadjusted
 Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected
 benefit will commence at the close of business on the following Valuation Day. Thus, the protection afforded by the newly-elected
 benefit will not begin until the close of business on the following Valuation Day.

• Any
 Death Benefit, including any optional Death Benefit that you elect, will terminate if withdrawals taken under Highest Daily Lifetime Income
 reduce your Unadjusted Account Value to zero. This means that any Death Benefit is terminated and no Death Benefit is payable if
 your Unadjusted Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than
 or equal to, your Annual Income Amount. (See " [<u>Triggers for the Payment of the Death Benefit</u>](#chapter_11-sect1_9_956) "
 for more information.)

• The
 maximum charge for Highest Daily Lifetime Income is 1.50% annually of the greater of the Unadjusted Account Value and Protected Withdrawal
 Value. As discussed in "Highest Daily Auto Step-Up" above, we may increase the fee upon a step-up under this benefit. We deduct
 this charge on quarterly anniversaries of the benefit effective date, based on the values on the last Valuation Day prior to the quarterly
 anniversary. Thus, we deduct, on a quarterly basis, 0.375% of the greater of the prior Valuation Day's Unadjusted Account Value and the prior Valuation
 Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options, including
 the AST Investment Grade Bond Portfolio. You will begin paying this charge as of the effective date of the benefit even if you do not
 begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals
 and/or if you never receive any lifetime income payments.

If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated Purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for Highest Daily Lifetime Income would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, partial withdrawals may reduce the Unadjusted Account Value to zero. If this happens and the Annual Income Amount is greater than zero, we will make payments under the benefit.

**Election of and Designations under the Benefit**

For Highest Daily Lifetime Income, there must be either a single Owner who is the same as the Annuitant, or if the Annuity is entity-owned, there must be a single natural person Annuitant. In either case, the Annuitant must be at least 45 years old. Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime Income. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime Income, except if (a) the new Owner has the same taxpayer identification number as the previous Owner, (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

Highest Daily Lifetime Income can be elected at the time that you purchase your Annuity or after the Issue Date, subject to its availability, and our eligibility rules and restrictions. If you elect Highest Daily Lifetime Income and terminate it, you cannot re-elect it. See "[<u>Termination of</u> <u>Existing Benefits and Election of New Benefits</u>](#achapter_11-sect1_2_956)" for information pertaining to elections, termination and re-election of benefits. **Please note that if** **you terminate a living benefit and elect Highest Daily Lifetime Income, you lose the guarantees that you had accumulated under your existing** **benefit and your guarantees under Highest Daily Lifetime Income will be based on your Unadjusted Account Value on the effective date of** **Highest Daily Lifetime Income**. You and your financial professional should carefully consider whether terminating your existing benefit is appropriate for you. There is no guarantee that any benefit will be available for election at a later date.

If you wish to elect this benefit and you are currently participating in a systematic withdrawal program, amounts withdrawn under the program must be taken on a proportional basis from your Annuity's Variable Options (i.e., in direct proportion to the proportion that each such Variable Option bears to your total Account Value) in order for you to be eligible for the benefit. Thus, you may not elect Highest Daily Lifetime Income so long as you participate in a systematic withdrawal program in which withdrawals are not taken on a proportional basis.

------

[Back to **Table of Contents**](#TOC_956)

**Termination of the Benefit**

You may terminate Highest Daily Lifetime Income at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and you cannot re-elect the benefit.

**The benefit automatically terminates upon the first to occur of the following:**

**(I)** **your termination of the benefit;** 

**(II)** **your surrender of the Annuity;** 

**(III)** **the Latest Annuity Date or your election to begin receiving annuity payments (although if you have elected to receive** **the Annual** **Income Amount in the form of annuity payments, we will continue to pay the Annual Income Amount);** 

**(IV)** **our receipt of Due Proof of Death of the Owner or Annuitant (for entity-owned annuities);** 

**(V)** **both the Unadjusted Account Value and Annual Income Amount equal zero; or** 

**(VI)** **you cease to meet our requirements as described in "Election of and Designations under the Benefit" above or if we** **process a** **requested change that is not consistent with our allowed Owner, Annuitant or Beneficiary designations.** \*

\* Prior to terminating a benefit, we will send you written notice and provide you with an opportunity to change your designations.

"Due Proof of Death" is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claim forms from at least one Beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary.

Upon termination of Highest Daily Lifetime Income other than upon the death of the Annuitant or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. However, if the amount in the Variable Options is not enough to pay the charge, we will reduce the fee to no more than the amount in the Variable Options. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options, and (ii) unless you are participating in an asset allocation program (i.e., Automatic Rebalancing Program, or 6 or 12 Month DCA Program for which we are providing administrative support), transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If, prior to the transfer from the AST Investment Grade Bond Portfolio, the Unadjusted Account Value in the Variable Options is zero, we will transfer such amounts to the AST Government Money Market Variable Option.

If a surviving spouse elects to continue the Annuity, Highest Daily Lifetime Income terminates upon Due Proof of Death. The spouse may newly elect the benefit subject to the restrictions discussed above.

**How Highest Daily Lifetime Income Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment** **Grade Bond Portfolio**

An integral part of Highest Daily Lifetime Income (including Highest Daily Lifetime Income with LIA and Spousal Highest Daily Lifetime Income) is the predetermined mathematical formula used to transfer Unadjusted Account Value between the Permitted Variable Options and a specified bond fund within the Advanced Series Trust (the AST Investment Grade Bond Portfolio, referred to in this section as the "Bond Portfolio"). This predetermined mathematical formula ("formula") runs each Valuation Day that the benefit is in effect on your Annuity and, as a result, transfers of Unadjusted Account Value between the Permitted Variable Options and the Bond Portfolio can occur on any Valuation Day subject to the conditions described below. Only the predetermined mathematical formula can transfer Unadjusted Account Value to and from the Bond Portfolio, and thus you may not allocate Purchase Payments to or make transfers to or from the Bond Portfolio. We are not providing you with investment advice through the use of the formula nor does the formula constitute an investment strategy that we are recommending to you. The formula by which the transfer operates is designed primarily to mitigate some of the financial risks that we incur in providing the guarantee under Highest Daily Lifetime Income. The formula is not forward looking and contains no predictive or projective component with respect to the markets, the Unadjusted Account Value or the Protected Withdrawal Value. **The** **formula is set forth in** [**<u>Appendix I</u>**](#chapter_26-sect1_1_956) **(and is described below).**

As indicated above, we limit the Variable Options to which you may allocate Unadjusted Account Value if you elect Highest Daily Lifetime Income. For purposes of these benefits, we refer to those permitted Investment Options as the "Permitted Variable Options". Because these restrictions and the use of the formula lessen the risk that your Unadjusted Account Value will be reduced to zero while you are still alive, they also reduce the likelihood that we will make any lifetime income payments under this benefit. They may also limit your upside potential for growth.

If you are participating in Highest Daily Lifetime Income and also are participating in the 6 or 12 Month DCA Program, and the formula under the benefit dictates a transfer from the Permitted Variable Options to the Bond Portfolio, then the amount to be transferred will be taken entirely from the Variable Options, provided there is sufficient Unadjusted Account Value in those Variable Options to meet the required transfer amount. Only if there is insufficient Unadjusted Account Value in those Variable Options will an amount be transferred from the DCA Market Value Adjustment Options. For purposes of the discussion below concerning transfers from the Permitted Variable Options to the Bond Portfolio, amounts held within the DCA Market Value Adjustment Options are included within the term "Permitted Variable Options". Thus, amounts may be transferred from the DCA Market Value Adjustment Options in the circumstances described above and in the section of the prospectus entitled "<u>Transfer and Rebalancing Programs - 6 or 12 Month Dollar Cost</u> 

------

[Back to **Table of Contents**](#TOC_956)

<u>Averaging Program</u>". Any transfer dictated by the formula out of the Bond Portfolio will only be transferred to the Permitted Variable Options, not the DCA Market Value Adjustment Options. We will not assess any Market Value Adjustment with respect to transfers under the formula from the DCA Market Value Adjustment Options.

Generally, the formula, which is applied each Valuation Day, operates as follows. **The formula starts by identifying an Income Basis (as defined in** [**<u>Appendix I</u>**](#chapter_26-sect1_1_956)**) for that day and then multiplies that figure by 5%, to produce a projected (i.e., hypothetical) income amount**. This amount may be different than the actual Annual Income Amount currently guaranteed under your benefit. Then it produces an estimate of the total amount targeted in the formula, based on the projected income amount and factors set forth in the formula. In the formula, we refer to that value as the "Target Value" or "L". If you have already made a Lifetime Withdrawal, your projected income amount (and thus your Target Value) would take into account any automatic step-up, any subsequent Purchase Payments (including any associated Purchase Credits with respect to the X Series), and any withdrawals of Excess Income. Next, the formula subtracts from the Target Value the amount held within the Bond Portfolio on that day, and divides that difference by the amount held within the Permitted Variable Options. That ratio, which essentially isolates the amount of your Target Value that is not offset by amounts held within the Bond Portfolio, is called the "Target Ratio" or "r". If, on each of three consecutive Valuation Days, the Target Ratio is greater than 83% but less than or equal to 84.5%, the formula will, on such third Valuation Day, make a transfer from the Permitted Variable Options in which you are invested (subject to the 90% cap discussed below) to the Bond Portfolio. Once a transfer is made, the Target Ratio must again be greater than 83% but less than or equal to 84.5% for three consecutive Valuation Days before a subsequent transfer to the Bond Portfolio will occur. If, however, on any Valuation Day, the Target Ratio is above 84.5%, the formula will make a transfer from the Permitted Variable Options (subject to the 90% cap) to the Bond Portfolio (as described above). If the Target Ratio falls below 78% on any Valuation Day, then a transfer from the Bond Portfolio to the Permitted Variable Options (excluding the DCA Market Value Adjustment Options) will occur.

The formula will not execute a transfer to the Bond Portfolio that results in more than 90% of your Unadjusted Account Value being allocated to the Bond Portfolio ("90% cap") on that Valuation Day. Thus, on any Valuation Day, if the formula would require a transfer to the Bond Portfolio that would result in more than 90% of the Unadjusted Account Value being allocated to the Bond Portfolio, only the amount that results in exactly 90% of the Unadjusted Account Value being allocated to the Bond Portfolio will be transferred. Additionally, future transfers into the Bond Portfolio will not be made (regardless of the performance of the Bond Portfolio and the Permitted Variable Options) at least until there is first a transfer out of the Bond Portfolio. Once this transfer occurs out of the Bond Portfolio, future amounts may be transferred to or from the Bond Portfolio if dictated by the formula (subject to the 90% cap). At no time will the formula make a transfer to the Bond Portfolio that results in greater than 90% of your Unadjusted Account Value being allocated to the Bond Portfolio. However, it is possible that, due to the investment performance of your allocations in the Bond Portfolio and your allocations in the Permitted Variable Options you have selected, your Unadjusted Account Value could be more than 90% invested in the Bond Portfolio.

If you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional Purchase Payments to the Bond Portfolio at least until there is first a transfer out of the Bond Portfolio, regardless of how much of your Unadjusted Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because of the additional Purchase Payments you make, less than 90% of your entire Unadjusted Account Value is allocated to the Bond Portfolio, and the formula will still not transfer any of your Unadjusted Account Value to the Bond Portfolio (at least until there is first a transfer out of the Bond Portfolio).

For example,

• September
 4 – a transfer is made to the Bond Portfolio that results in the 90% cap being met and now $90,000 is allocated to the Bond
  Portfolio and $10,000 is allocated to the Permitted Variable Options.

• September
 5 – you make an additional Purchase Payment of $10,000. No transfers have been made from the Bond Portfolio to the Permitted
 Variable Options since the cap went into effect on September 4.

• On
 September 5 – (and at least until first a transfer is made out of the Bond Portfolio under the formula) – the $10,000 payment
 is allocated to the
 Permitted Variable Options and on this date you have 82% in the Bond Portfolio and 18% in the Permitted Variable Options
 (such that $20,000 is allocated to the Permitted Variable Options and $90,000 to the Bond Portfolio).

• Once
 there is a transfer out of the Bond Portfolio (of any amount), the formula will operate as described above, meaning that the formula could
 transfer amounts to or from the Bond Portfolio if dictated by the formula (subject to the 90% cap).

Under the operation of the formula, the 90% cap may come into and out of effect multiple times while you participate in the benefit. We will continue to monitor your Unadjusted Account Value daily and, if dictated by the formula, systematically transfer amounts between the Permitted Variable Options you have chosen and the Bond Portfolio as dictated by the formula.

Under the formula, investment performance of your Unadjusted Account Value that is negative, flat, or even moderately positive may result in a transfer of a portion of your Unadjusted Account Value in the Permitted Variable Options to the Bond Portfolio because such investment performance will tend to increase the Target Ratio. In deciding how much to transfer, we use another formula, which essentially seeks to reallocate amounts held in the Permitted Variable Options and the Bond Portfolio so that the Target Ratio meets a target, which currently is equal to 80%. The further the Target Ratio is from 80% when a transfer is occurring under the formula, the greater the transfer amount will be. Once you elect Highest Daily Lifetime Income, the values we use to compare to the Target Ratio will be fixed. For newly-issued Annuities that elect Highest Daily Lifetime Income and existing Annuities that elect Highest Daily Lifetime Income in the future, however, we reserve the right to change such values.

------

[Back to **Table of Contents**](#TOC_956)

Additionally, on each monthly Annuity Anniversary (if the monthly Annuity Anniversary does not fall on a Valuation Day, the next Valuation Day will be used), following all of the above described daily calculations, if there is money allocated to the Bond Portfolio, we will perform an additional monthly calculation to determine whether or not a transfer will be made from the Bond Portfolio to the Permitted Variable Options. This transfer will automatically occur provided that the Target Ratio, as described above, would be less than 83% after the transfer. The formula will not execute a transfer if the Target Ratio after this transfer would occur would be greater than or equal to 83%.

The amount of the transfer will be equal to the lesser of:

(a) The
 total value of all your Unadjusted Account Value in the Bond Portfolio, or

(b) An amount equal to 5% of your total Unadjusted Account Value.

While you are not notified when your Annuity reaches a transfer trigger under the formula, you will receive a confirmation statement indicating the transfer of a portion of your Unadjusted Account Value either to or from the Bond Portfolio. Depending on the results of the calculations of the formula, we may, on any Valuation Day:

• Not
 make any transfer between the Permitted Variable Options and the Bond Portfolio; or

• If
 a portion of your Unadjusted Account Value was previously allocated to the Bond Portfolio, transfer all or a portion of those amounts to  the Permitted
 Variable Options (as described above); or

• Transfer
 a portion of your Unadjusted Account Value in the Permitted Variable Options and the DCA Market Value Adjustment Options to the
  Bond Portfolio.

Prior to the first Lifetime Withdrawal, the primary driver of transfers to the Bond Portfolio is the difference between your Unadjusted Account Value and your Protected Withdrawal Value. If none of your Unadjusted Account Value is allocated to the Bond Portfolio, then over time the formula permits an increasing difference between the Unadjusted Account Value and the Protected Withdrawal Value before a transfer to the Bond Portfolio occurs. Therefore, as time goes on, while none of your Unadjusted Account Value is allocated to the Bond Portfolio, the smaller the difference between the Protected Withdrawal Value and the Unadjusted Account Value, the more the Unadjusted Account Value can decrease prior to a transfer to the Bond Portfolio.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Unadjusted Account Value, will differ from market cycle to market cycle producing different transfer activity under the formula. The amount and timing of transfers to and from the Bond Portfolio pursuant to the formula depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Unadjusted Account Value and your Protected Withdrawal Value;

• The
 amount of time Highest Daily Lifetime Income has been in effect on your Annuity;

• The
 amount allocated to and the performance of the Permitted Variable Options and the Bond Portfolio;

• Any
 additional Purchase Payments you make to your Annuity (while the benefit is in effect); and

• Any
 withdrawals you take from your Annuity (while the benefit is in effect).

At any given time, some, most or none of your Unadjusted Account Value will be allocated to the Bond Portfolio, as dictated by the formula.

Because the amount allocated to the Bond Portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula, the investment performance of each affects whether a transfer occurs for your Annuity. The greater the amounts allocated to either the Bond Portfolio or to the Permitted Variable Options, the greater the impact performance of that Variable Option has on your Unadjusted Account Value and thus the greater the impact on whether (and how much) your Unadjusted Account Value is transferred to or from the Bond Portfolio. It is possible, under the formula, that if a significant portion of your Unadjusted Account Value is allocated to the Bond Portfolio and that Variable Option has positive performance, the formula might transfer a portion of your Unadjusted Account Value to the Permitted Variable Options, even if the performance of your Permitted Variable Options is negative. Conversely, if a significant portion of your Unadjusted Account Value is allocated to the Bond Portfolio and that Variable Option has negative performance, the formula may transfer additional amounts from your Permitted Variable Options to the Bond Portfolio even if the performance of your Permitted Variable Options is positive.

If you make additional Purchase Payments to your Annuity, they will be allocated in accordance with your Annuity. Once allocated, they will also be subject to the formula described above and therefore may be transferred to the Bond Portfolio, if dictated by the formula and subject to the 90% cap rule described above.

Any Unadjusted Account Value in the Bond Portfolio will not participate in the positive or negative investment experience of the Permitted Variable Options until it is transferred out of the Bond Portfolio.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts beginning after the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. See "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for more information about the applicable age and further discussions of RMDs.

------

[Back to **Table of Contents**](#TOC_956)

As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. Please see "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for a detailed discussion of the tax treatment of withdrawals. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in Highest Daily Lifetime Income or Spousal Highest Daily Lifetime Income through a Non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

**HIGHEST DAILY LIFETIME INCOME BENEFIT WITH LIFETIME INCOME ACCELERATOR**

We offer another version of Highest Daily Lifetime Income that we call Highest Daily Lifetime Income with Lifetime Income Accelerator. Highest Daily Lifetime Income with LIA guarantees, until the death of the single designated life, the ability to withdraw an amount equal to double the Annual Income Amount (which we refer to as the "LIA Amount") if you meet the conditions set forth below. This version is only being offered in those jurisdictions where we have received regulatory approval and will be offered subsequently in other jurisdictions when we receive regulatory approval in those jurisdictions. We reserve the right, in our sole discretion, to cease offering this benefit at any time.

You may choose Highest Daily Lifetime Income with or without also electing LIA, however you may not elect LIA without Highest Daily Lifetime Income and you must elect the LIA benefit at the time you elect Highest Daily Lifetime Income. If you elect Highest Daily Lifetime Income without LIA and would like to add the feature later, you must first terminate Highest Daily Lifetime Income and elect Highest Daily Lifetime Income with LIA (subject to availability and benefit re-election provisions). Please note that if you terminate Highest Daily Lifetime Income and elect Highest Daily Lifetime Income with LIA you lose the guarantees that you had accumulated under your existing benefit and will begin the new guarantees under the new benefit you elect based on your Unadjusted Account Value as of the date the new benefit becomes active. Highest Daily Lifetime Income with LIA is offered as an alternative to other lifetime withdrawal options. If you elect this benefit, it may not be combined with any other optional living benefit or death benefit. As long as your Highest Daily Lifetime Income with LIA benefit is in effect, you must allocate your Unadjusted Account Value in accordance with the Permitted Variable Option(s) with this benefit. The income benefit under Highest Daily Lifetime Income with LIA currently is based on a single "designated life" who is between the ages of 45 and 75 on the date that the benefit is elected and received in Good Order. All terms and conditions of Highest Daily Lifetime Income apply to this version of the benefit, except as described herein. As is the case with Highest Daily Lifetime Income, Highest Daily Lifetime Income with LIA involves your participation in a predetermined mathematical formula that transfers Account Value between your Variable Options and the AST Investment Grade Bond Portfolio. Please see Highest Daily Lifetime Income above for a description of the predetermined mathematical formula.

Highest Daily Lifetime Income with LIA is not long-term care insurance and should not be purchased as a substitute for long-term care insurance. The income you receive through the Lifetime Income Accelerator may be used for any purpose, and it may or may not be sufficient to address expenses you may incur for long-term care or other medical or retirement expenses. You should seek professional advice to determine your financial needs for long-term care.

If this benefit is being elected on an Annuity held as a 403(b) plan, then in addition to meeting the eligibility requirements listed below for the LIA Amount you must separately qualify for distributions from the 403(b) plan itself.

The maximum charge is 2.00% annually of the greater of the Unadjusted Account Value and Protected Withdrawal Value. We deduct this charge on quarterly anniversaries of the benefit effective date. Thus, we deduct, on a quarterly basis, 0.50% of the greater of the prior Valuation Day's Unadjusted Account Value and the prior Valuation Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options, including the AST Investment Grade Bond Portfolio.

If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated Purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for Highest Daily Lifetime Income with LIA benefit would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, withdrawals may reduce the Unadjusted Account Value to zero.

**Eligibility Requirements for LIA Amount.** Both a waiting period of 36 months from the benefit effective date and an elimination period of 120 days from the date of notification that one or both of the requirements described immediately below have been met apply before you can become eligible for the LIA Amount. The 120 day elimination period begins on the date that we receive notification from you of your eligibility for the LIA Amount. Thus, assuming the 36 month waiting period has been met and we have received the notification referenced in the immediately preceding sentence, the LIA Amount would be available for withdrawal on the Valuation Day immediately after the 120<sup>th</sup> day. The waiting period and the elimination period may run concurrently. In addition to satisfying the waiting and elimination period, at least one of the following requirements ("LIA conditions") must be met.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(1) The
 designated life is confined to a qualified nursing facility. A qualified nursing facility is a facility operated pursuant to laws of any
 United States jurisdiction
 providing medically necessary in-patient care which is prescribed by a licensed physician in writing and based on physical
 limitations which prohibit daily living in a non-institutional setting.

(2) The
 designated life is unable to perform two or more basic abilities of caring for oneself or "activities of daily living." We
 define these basic abilities
 as:

(a) Eating:
 Feeding oneself by getting food into the body from a receptacle (such as a plate, cup or table) or by a feeding tube or intravenously.

(b) Dressing:
 Putting on and taking off all items of clothing and any necessary braces, fasteners or artificial limbs.

(c) Bathing:
 Washing oneself by sponge bath; or in either a tub or shower, including the task of getting into or out of the tub or shower.

(d) Toileting:
 Getting to and from the toilet, getting on and off the toilet, and performing associated personal hygiene.

(e) Transferring:
 Moving into or out of a bed, chair or wheelchair.

(f) Continence:
 Maintaining control of bowel or bladder function; or when unable to maintain control of bowel or bladder function, the ability
 to perform personal hygiene (including caring for catheter or colostomy bag).

You must notify us in writing when the LIA conditions have been met. If, when we receive such notification, there are more than 120 days remaining until the end of the waiting period described above, you will not be eligible for the LIA Amount, and you will have to notify us again in writing in order to become eligible. If there are 120 days or less remaining until the end of the waiting period when we receive notification that the LIA conditions are met, we will determine eligibility for the LIA Amount through our then current administrative process, which may include, but is not limited to, documentation verifying the LIA conditions and/or an assessment by a third party of our choice. Such assessment may be in person and we will assume any costs associated with the aforementioned assessment. The designated life must be available for any assessment or reassessment pursuant to our administrative process requirements. Please note that you must be available in the U.S. for the assessment. Once eligibility is determined, the LIA Amount is equal to double the Annual Income Amount as described above under Highest Daily Lifetime Income.

Additionally, once eligibility is determined, we will reassess your eligibility on an annual basis although your LIA benefit for the Annuity Year that immediately precedes or runs concurrent with our reassessment will not be affected if it is determined that you are no longer eligible. Your first reassessment may occur in the same year as your initial assessment. If we determine that you are no longer eligible to receive the LIA Amount, the Annual Income Amount would replace the LIA Amount on the next Annuity Anniversary (the "ineligibility effective date"). However, 1) if you were receiving income through a systematic withdrawal program that was based on your LIA Amount; 2) you subsequently become ineligible to receive your LIA Amount, and 3) we do not receive new withdrawal instructions from you prior to the ineligibility effective date, we will cancel such systematic withdrawal program on the ineligibility effective date. You will be notified of your subsequent ineligibility and the date systematic withdrawal payments will stop before either occur. If any existing systematic withdrawal program is canceled, you must enroll in a new systematic withdrawal program if you wish to receive income on a systematic basis. You may establish a new or make changes to any existing systematic withdrawal program at any time by contacting our Annuity Service Center. All "Excess Income" conditions described above in "Key Feature – Annual Income Amount under Highest Daily Lifetime Income" would apply. There is no limit on the number of times you can become eligible for the LIA Amount, however, each time would require the completion of the 120-day elimination period, notification that the designated life meets the LIA conditions, and determination, through our then current administrative process, that you are eligible for the LIA Amount, each as described above.

**LIA Amount at the first Lifetime Withdrawal.** If your first Lifetime Withdrawal subsequent to election of Highest Daily Lifetime Income with LIA occurs while you are eligible for the LIA Amount, the available LIA Amount is equal to double the Annual Income Amount.

**LIA Amount after the first Lifetime Withdrawal.** If you become eligible for the LIA Amount after you have taken your first Lifetime Withdrawal, the available LIA Amount for the current and subsequent Annuity Years is equal to double the then current Annual Income Amount. However, the available LIA Amount in the current Annuity Year is reduced by any Lifetime Withdrawals that have been taken in the current Annuity Year. Cumulative Lifetime Withdrawals in an Annuity Year which are less than or equal to the LIA Amount (when eligible for the LIA Amount) will not reduce your LIA Amount in subsequent Annuity Years, but any such withdrawals will reduce the LIA Amount on a dollar-for-dollar basis in that Annuity Year.

For new issuances of this benefit, we may institute a "cut-off" date that would stop the appreciation of the Protected Withdrawal Value, even if no Lifetime Withdrawal had been taken prior to the cut-off date (thus affecting the determination of the LIA Amount). We will not apply any cut-off date to those who elected this benefit prior to our institution of a cut-off date.

**Withdrawals in Excess of the LIA Amount.** Withdrawals (other than the Non-Lifetime Withdrawal) of any amount in a given Annuity Year up to the LIA Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. However, if your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the LIA Amount ("Excess Income"), your LIA Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions) by the result of the ratio of the excess portion of the withdrawal to the Account Value immediately prior to the Excess Income. Excess Income also will reduce the Protected Withdrawal Value by the same ratio as the reduction to the LIA Amount. Any withdrawals that are less than or equal to the LIA Amount (when eligible) but in excess of the Free Withdrawal amount available under this Annuity will not incur a CDSC.

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal has exceeded the LIA Amount.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of more than the LIA Amount, you cannot
 request an amount that would result in cumulative withdrawals in that Annuity Year exceeding the LIA Amount.

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of more than the LIA Amount, the amount you request plus the amount of any applicable CDSC and/or tax withholding
 cannot cause cumulative withdrawals in that Annuity Year to exceed the LIA Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of more than the LIA Amount than if you request a gross withdrawal.

No CDSC is applicable to any Lifetime Withdrawal that is less than or equal to the LIA Amount, even if the total amount of such withdrawals in any Annuity Year exceeds any maximum Free Withdrawal amount described in the Annuity. Such Lifetime Withdrawals are not treated as withdrawals of Purchase Payments. Each withdrawal that is Excess Income is subject to any applicable CDSC if the withdrawal is greater than the Charge fee withdrawal amount under the Annuity.

**Withdrawals are not required.** However, subsequent to the first Lifetime Withdrawal, the LIA Amount is not increased in subsequent Annuity Years if you decide not to take a withdrawal in an Annuity Year or take withdrawals in an Annuity Year that in total are less than the LIA Amount.

**Purchase Payments.** If you are eligible for the LIA Amount as described under "Eligibility Requirements for LIA Amount" and you make an additional Purchase Payment, the Annual Income Amount is increased by an amount obtained by applying the applicable percentage (3% for ages 45-54; 4% for ages 55 to less than 59½; 5% for ages 59½-84; and 6% for ages 85 or older) to the Purchase Payment (including any associated Purchase Credits). The applicable percentage is based on the attained age of the designated life on the date of the first Lifetime Withdrawal after the benefit effective date.

The LIA Amount is increased by double the Annual Income Amount, if eligibility for LIA has been met. The Protected Withdrawal Value is increased by the amount of each Purchase Payment (including any associated Purchase Credits).

If the Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount (or, if eligible for LIA, the LIA Amount) is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount (or, if eligible for LIA, the LIA Amount) in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner.

**Step Ups.** If your Annual Income Amount is stepped up, your LIA Amount will be stepped up to equal double the stepped up Annual Income Amount.

**Guarantee Payments.** If your Unadjusted Account Value is reduced to zero as a result of cumulative withdrawals that are equal to or less than the LIA Amount when you are eligible, and there is still a LIA Amount available, we will make an additional payment for that Annuity Year equal to the remaining LIA Amount. If this were to occur, you are not permitted to make additional Purchase Payments to your Annuity. Thus, in that scenario, the remaining LIA Amount would be payable even though your Unadjusted Account Value was reduced to zero. In subsequent Annuity Years we make payments that equal the LIA Amount as described in this section. We will make payments until the death of the single designated life. Should the designated life no longer qualify for the LIA Amount (as described under "Eligibility Requirements for LIA Amount" above), the Annual Income Amount would continue to be available. Subsequent eligibility for the LIA Amount would require the completion of the 120 day elimination period as well as meeting the LIA conditions listed above under "Eligibility Requirements for LIA Amount". **To the extent that cumulative withdrawals in the current Annuity Year that reduce** **your Unadjusted Account Value to zero are more than the LIA Amount (except in the case of Required Minimum Distributions), Highest Daily** **Lifetime Income with LIA terminates, and no additional payments are made. However, if a withdrawal in the latter scenario was taken to satisfy** **a Required Minimum Distribution (as described above) under the Annuity, then the benefit will not terminate, and we will continue to pay the** **LIA Amount in subsequent Annuity Years until the death of the designated life.**

**Annuity Options.** In addition to the Highest Daily Lifetime Income annuity options described above, after the tenth anniversary of the benefit effective date ("Tenth Anniversary"), you may also request that we make annuity payments each year equal to the Annual Income Amount. In any year that you are eligible for the LIA Amount, we make annuity payments equal to the LIA Amount. If you would receive a greater payment by applying your Unadjusted Account Value to receive payments for life under your Annuity, we will pay the greater amount. Annuitization prior to the Tenth Anniversary will forfeit any present or future LIA Amounts. We will continue to make payments until the death of the designated life. If this option is elected, the Annual Income Amount and LIA Amount will not increase after annuity payments have begun.

If you elect Highest Daily Lifetime Income with LIA, and never meet the eligibility requirements, you will not receive any additional payments based on the LIA Amount.

**Termination of Highest Daily Lifetime Income with LIA. the LIA benefit terminates upon the first to occur of the following:**

**(I)** **your termination of the benefit;** 

**(II)** **your surrender of the annuity;** 

**(III)** **our receipt of Due Proof of Death of the designated life;** 

**(IV)** **the Annuity Date, if unadjusted Account Value remains on the Annuity Date and an election is made to commence** **annuity payments prior to the tenth annuity anniversary;** 

**(V)** **the Valuation Day on which each of the unadjusted Account Value and the Annual Income Amount is zero; or** 

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**(VI)** **if you cease to meet our requirements for elections of this benefit or if we process a requested change that is not** **consistent with our allowed Owner, Annuitant or Beneficiary designations.** **\*** 

\* Prior to terminating the benefit, we will send you written notice and provide you with an opportunity to change your designations.

Highest Daily Lifetime Income with LIA uses the same predetermined mathematical formula used with Highest Daily Lifetime Income and Spousal Highest Daily Lifetime Income. See the pertinent discussion in Highest Daily Lifetime Income above.

**SPOUSAL HIGHEST DAILY LIFETIME INCOME BENEFIT**

Spousal Highest Daily Lifetime Income is a lifetime guaranteed minimum withdrawal benefit, under which, subject to the terms of the benefit, we guarantee your ability to take a certain annual withdrawal amount for the lives of two individuals who are spouses. We reserve the right, in our sole discretion, to cease offering this benefit for new elections at any time.

We offer a benefit that guarantees, until the later death of two natural persons who are each other's spouses at the time of election of the benefit (the "designated lives", and each, a "designated life"), the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Unadjusted Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the lives of the designated lives, provided you have not made withdrawals of Excess Income that result in your Unadjusted Account Value being reduced to zero. We also permit you to designate the first withdrawal from your Annuity as a one-time "Non-Lifetime Withdrawal." All other withdrawals from your Annuity are considered a "Lifetime Withdrawal" under the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Unadjusted Account Value is reduced to zero (for any reason other than due to partial withdrawals of Excess Income). The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue Spousal Highest Daily Lifetime Income after the death of the first spouse. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. An integral component of Spousal Highest Daily Lifetime Income is the predetermined mathematical formula we employ that may periodically transfer your Unadjusted Account Value to and from the AST Investment Grade Bond Portfolio. See the section above entitled "How Highest Daily Lifetime Income Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio."

Spousal Highest Daily Lifetime Income is the spousal version of Highest Daily Lifetime Income. This version is only being offered in those jurisdictions where we have received regulatory approval and will be offered subsequently in other jurisdictions when we receive regulatory approval in those jurisdictions. Currently, if you elect Spousal Highest Daily Lifetime Income and subsequently terminate the benefit, you may elect another living benefit, subject to our current rules. Please note that if you terminate Spousal Highest Daily Lifetime Income and elect another benefit, you lose the guarantees that you had accumulated under your existing benefit and will begin the new guarantees under the new benefit you elect based on your Unadjusted Account Value as of the date the new benefit becomes active. See "[<u>Termination of Existing Benefits and Election of New Benefits</u>](#achapter_11-sect1_2_956)" for details.

Spousal Highest Daily Lifetime Income must be elected based on two designated lives, as described below. Each designated life must be at least 45 years old on the benefit effective date. We will not divide an Annuity or the Spousal Highest Daily Lifetime Income benefit due to a divorce. See "Election of and Designations under the Benefit" below for details. Spousal Highest Daily Lifetime Income is not available if you elect any other optional living benefit, although you may elect any optional death benefit.

As long as your Spousal Highest Daily Lifetime Income is in effect, you must allocate your Unadjusted Account Value in accordance with the Permitted Variable Options and other Investment Option(s) available with this benefit. **For a more detailed description of the permitted Investment Options,** **see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956)**.**

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Unadjusted Account Value falls to zero,** **if any withdrawal is a withdrawal of Excess Income (as described below) and brings your Unadjusted Account Value to zero, your Annual** **Income Amount also would fall to zero, and the benefit and the Annuity then would terminate. In that scenario, no further amount would be** **payable under Spousal Highest Daily Lifetime Income. As to the impact of such a scenario on any other optional benefit you may have, please** **see the applicable section in this prospectus. For example, if the Annuity terminates in this scenario, you would no longer have any optional** **death benefit that you may have elected (see the Optional Death Benefits section of this prospectus).**

You may also participate in the 6 or 12 Month Dollar Cost Averaging Program if you elect Spousal Highest Daily Lifetime Income, subject to the 6 or 12 Month DCA Program's rules. See the section of this prospectus entitled "[<u>Transfer and Rebalancing Programs - 6 or 12 Month Dollar Cost Averaging</u> <u>Program</u>](#chapter_9-sect1_3_956)" for details.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is used to calculate the initial Annual Income Amount. The Protected Withdrawal Value is separate from your Unadjusted Account Value and not available as cash or a lump sum. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Unadjusted Account Value. On each Valuation Day thereafter until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraph.

------

[Back to **Table of Contents**](#TOC_956)

The "Periodic Value" is initially equal to the Unadjusted Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. The Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

(1) the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 5% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment (including any associated Purchase Credits) made on the Current Valuation Day; and

(2) the
 Unadjusted Account Value on the current Valuation Day.

If you have not made a Lifetime Withdrawal on or before the 12<sup>th</sup> benefit anniversary, your Periodic Value on the 12<sup>th</sup> benefit anniversary is equal to the greater of:

(1) the
 Periodic Value described above or,

(2) the
 sum of (a), (b) and (c) proportionally reduced for any Non-Lifetime Withdrawal:

(a) 200% of the Unadjusted Account Value on the effective date of the benefit including any Purchase Payments (including any associated Purchase Credits) made on that day;

(b) 200% of all Purchase Payments (including any associated Purchase Credits) made within one year following the effective date of the benefit; and

(c) all Purchase Payments (including any associated Purchase Credits) made after one year following the effective date of the benefit.

This means that if you do not take a Lifetime Withdrawal on or before the 12<sup>th</sup> benefit anniversary of the benefit effective date, your Protected Withdrawal Value on the 12<sup>th</sup> benefit anniversary will be at least double (200%) your initial Protected Withdrawal Value established on the date of benefit election. If you begin taking Lifetime Withdrawals prior to your 12<sup>th</sup> benefit anniversary, however, these automatic increases will not occur. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Unadjusted Account Value upon any step-up, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals (see the examples that begin immediately prior to the sub-heading below entitled "Example of dollar-for-dollar reductions").

**Key Feature – Annual Income Amount under Spousal Highest Daily Lifetime Income**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the younger designated life on the date of the first Lifetime Withdrawal after election of the benefit. The percentages are: 2.5% for ages 45-54, 3.5% for ages 55 to less than 59½; 4.5% for ages 59½ to 84, and 5.5% for ages 85 and older. We use the age of the younger designated life even if that designated life is no longer a participant under the Annuity due to death or divorce. Under Spousal Highest Daily Lifetime Income, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year and also will reduce the Protected Withdrawal Value on a dollar-for-dollar basis. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount for any Annuity Year ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Unadjusted Account Value immediately prior to such withdrawal (see examples of this calculation below). Excess Income also will reduce the Protected Withdrawal Value by the same ratio.

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal is a withdrawal of Excess Income.

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of Excess Income, you cannot request
 an amount that would result in cumulative withdrawals in that Annuity Year exceeding your Annual Income Amount.

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of Excess Income, the amount you request plus the amount of any applicable CDSC and/or tax withholding cannot
 cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of Excess Income than if you request a gross withdrawal.

You may use the systematic withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit and must be taken as a gross withdrawal.

------

[Back to **Table of Contents**](#TOC_956)

Any Purchase Payment that you make subsequent to the election of Spousal Highest Daily Lifetime Income and subsequent to the first Lifetime Withdrawal will (i) immediately increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including any associated Purchase Credits) based on the age of the younger designated life at the time of the first Lifetime Withdrawal (the percentages are: 2.5% for ages 45-54, 3.5% for ages 55 to less than 59½, 4.5% for ages 59½ to 84, and 5.5% for ages 85 and older), and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including any associated Purchase Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of this benefit. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Unadjusted Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the younger designated life on the Annuity Anniversary as of which the step-up would occur. The percentages are 2.5% for ages 45-54, 3.5% for ages 55 to less than 59½, 4.5% for ages 59½ to 84, and 5.5% for ages 85 and older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. We will not automatically increase your Annual Income Amount solely as a result of your attaining a new age that is associated with a new age-based percentage. The Unadjusted Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary by performing a similar examination of the Unadjusted Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Unadjusted Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Spousal Highest Daily Lifetime Income has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Spousal Highest Daily Lifetime Income upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject. Any such increased charge will not be greater than the maximum charge set forth in the table entitled "Your Optional Benefit Fees and Charges" in the "[<u>Fee</u> <u>Table</u>](#chapter_5-sect1_1_956)" section.

If you are enrolled in a systematic withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount. You must notify us in order to increase the withdrawal amount of any systematic withdrawal program.

Spousal Highest Daily Lifetime Income does not affect your ability to take withdrawals under your Annuity, or limit your ability to take partial withdrawals that exceed the Annual Income Amount. Under Spousal Highest Daily Lifetime Income, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years. If your cumulative Lifetime Withdrawals in an Annuity Year exceed the Annual Income Amount, your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules).

Because both the Protected Withdrawal Value and Annual Income Amount are determined in a way that is not solely related to Unadjusted Account Value, it is possible for the Unadjusted Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Spousal Highest Daily Lifetime Income or any other fees and charges under the Annuity. Assume the following for all three examples:

• The
 Issue Date is November 1, 2011

• Spousal
 Highest Daily Lifetime Income is elected on August 1, 2012

• Both
 designated lives were 70 years old when they elected Spousal Highest Daily Lifetime Income

• The
 first withdrawal is a Lifetime Withdrawal

------

[Back to **Table of Contents**](#TOC_956)

**Example of dollar-for-dollar reductions**

On October 24, 2012, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $5,400 (since the younger designated life is between the ages of 59½ and 84 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 4.5% of the Protected Withdrawal Value, in this case 4.5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including October 31, 2012) is $2,900. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($5,400 less $2,500 = $2,900).

**Example of proportional reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on October 29, 2012 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $2,900 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $2,100 reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the Excess Income to the Account Value immediately prior to the Excess Income. (Note that if there were other withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before Lifetime Withdrawal | $118000.00 |
|  Amount of "non" Excess Income | $2900.00 |
|  Account Value immediately before Excess Income of $2,100 | $115100.00 |
|  Excess Income amount | $2100.00 |
|  Ratio ($2,100/$115,100 = 1.82%) | 1.82% |
|  Annual Income Amount | $5400.00 |
|  1.82% Reduction in Annual Income Amount | $98.28 |
|  Annual Income Amount for future Annuity Years | $5301.72 |

---

**Example** **of Highest Daily Auto Step-up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

------

[Back to **Table of Contents**](#TOC_956)

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Spousal Highest Daily Lifetime Income. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_8_956)"). This Non-Lifetime Withdrawal will not establish our initial Annual Income Amount and the Periodic Value described earlier in this section will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with Spousal Highest Daily Lifetime Income. You must tell us at the time you take the partial withdrawal if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under Spousal Highest Daily Lifetime Income. If you do not designate the withdrawal as a Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Annual Income Amount, which is based on your Protected Withdrawal Value. Once you elect the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime withdrawals may be taken. If you do not take a Non-Lifetime Withdrawal before beginning Lifetime Withdrawals, you lose the ability to take it.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value. It will also proportionally reduce the Periodic Value guarantee on the twelfth anniversary of the benefit effective date (see description in "Key Feature – Protected Withdrawal Value," above). It will reduce both by the percentage the total withdrawal amount (including any applicable CDSC) represents of the then current Account Value immediately prior to the time of the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a systematic withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first withdrawal under the program will be considered a Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (Proportional Reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit. Assume the following:

• The
 Issue Date is December 1, 2011

• Spousal
 Highest Daily Lifetime Income is elected on September 4, 2012

• The
 Unadjusted Account Value at benefit election was $105,000

• Each
 designated life was 70 years old when he/she elected Spousal Highest Daily Lifetime Income

• No
 previous withdrawals have been taken under Spousal Highest Daily Lifetime Income

On October 3, 2012, the Protected Withdrawal Value is $125,000, the 12<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000, and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on October 3, 2012 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with Spousal Highest Daily Lifetime Income will be reduced by the ratio of the total withdrawal amount to the Account Value just prior to the withdrawal being taken.

**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal amount | $15000 |
|  Divided by Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375 |
|  12<sup>th</sup> benefit year Minimum Periodic Value | $183750 |

---

**Required Minimum Distributions**

See the sub-section entitled "[<u>Required Minimum Distributions</u>](#chapter_13-sect1_7_956)" in the prospectus section above concerning Highest Daily Lifetime Income for a discussion of the relationship between the RMD amount and the Annual Income Amount.

------

[Back to **Table of Contents**](#TOC_956)

**Benefits Under Spousal Highest Daily Lifetime Income**

• To
 the extent that your Unadjusted Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that
 are less than or equal to the Annual Income Amount, and amounts are still payable under Spousal Highest Daily Lifetime Income, we will
 make an additional payment, if any, for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year. Thus, in that
 scenario, the remaining Annual Income Amount would be payable even though your Unadjusted Account Value was reduced to zero. In
 subsequent Annuity Years we make payments that equal the Annual Income Amount as described in this section. We will make payments
 until the death of the first of the designated lives to die, and will continue to make payments until the death of the second designated
 life. After the Unadjusted Account Value is reduced to zero, you are not permitted to make additional Purchase Payments to your
 Annuity. **To the extent that cumulative partial withdrawals in an Annuity Year exceed the Annual Income Amount ("Excess** **Income") and reduce your Unadjusted Account Value to zero, Spousal Highest Daily Lifetime Income terminates, we will make** **no further payments of the Annual Income Amount and no additional Purchase Payments will be permitted. However, if a partial** **withdrawal in the latter scenario was taken to satisfy a Required Minimum Distribution (as described above) under the Annuity** **then the benefit will not terminate, and we will continue to pay the Annual Income Amount in subsequent Annuity Years until the** **death of the second designated life.** 

• Please
 note that if your Unadjusted Account Value is reduced to zero, all payments in each Annuity Year subsequent to the Annuity Year your
 Account Value is reduced to zero will be treated as annuity payments. Also, any Death Benefit will terminate if withdrawals reduce your
 Unadjusted Account Value to zero. This means that any Death Benefit is terminated and no Death Benefit is payable if your Unadjusted
 Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal
 to, your Annual Income Amount.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

(a) apply
 your Unadjusted Account Value, less any applicable state required premium tax, to any annuity option available; or

(b) request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 We will make payments until the first of the designated lives to die, and will continue to make payments until the death of the
 second designated life. If, due to death of a designated life or divorce prior to Annuitization, only a single designated life remains, then annuity payments
 will be made as a life annuity for the lifetime of the designated life. We must receive your request in a form acceptable
 to us at our office. If applying your Unadjusted Account Value, less any applicable tax charges, to our current life only (or joint
 life, depending on the number of designated lives remaining) annuity payment rates results in a higher annual payment, we will give
 you the higher annual payment.

• In
 the absence of an election when mandatory annuity payments are to begin, we currently make annual annuity payments as a joint and survivor
 or single (as applicable) life fixed annuity with eight payments certain, by applying the greater of the annuity rates then currently available or the
 annuity rates guaranteed in your Annuity. We reserve the right at any time to increase or decrease the certain period in order
 to comply with the Code (e.g., to shorten the period certain to match life expectancy under applicable IRS tables). The amount that will
 be applied to provide such annuity payments will be the greater of:

(a) the
 present value of the future Annual Income Amount payments (if no Lifetime Withdrawal was ever taken, we will calculate the Annual
 Income Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin). Such present value
 will be calculated using the greater of the joint and survivor or single (as applicable) life fixed annuity rates then currently available
 or the joint and survivor or single (as applicable) life fixed annuity rates guaranteed in your Annuity; and

(b) the
 Unadjusted Account Value.

**Other Important Considerations**

• Withdrawals
 under the Spousal Highest Daily Lifetime Income benefit are subject to all of the terms and conditions of the Annuity, including
 any applicable CDSC for the Non-Lifetime Withdrawal as well as partial withdrawals that exceed the Annual Income Amount. If you
 have an active systematic withdrawal program running at the time you elect this benefit, the first systematic withdrawal that processes after your election
 of the benefit will be deemed a Lifetime Withdrawal. Withdrawals made while Spousal Highest Daily Lifetime Income is in
 effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. Any withdrawals made under the benefit
 will be taken on a proportional basis from the Variable Options (including the AST Investment Grade Bond Portfolio) and the DCA Market
 Value Adjustment Options. If you have an active systematic withdrawal program running at the time you elect this benefit, the program
 must withdraw funds on a proportional basis.

• Any
 Lifetime Withdrawal that does not cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount is not subject
 to a CDSC, even if the total amount of such withdrawals in any Annuity Year exceeds the maximum Free Withdrawal amount. For example,
 if your Free Withdrawal amount is $10,000 and your Annual Income Amount is $11,000, withdrawals of your entire Annual Income
 Amount in any Annuity Year would not trigger a CDSC. If you withdrew $12,000, however, $1,000 would be subject to a CDSC.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• You
 should carefully consider when to begin taking Lifetime Withdrawals. If you begin taking withdrawals early, you may maximize the time
 during which you may take Lifetime Withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals
 reduce your Unadjusted Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss
 with your financial professional when it may be appropriate for you to begin taking Lifetime Withdrawals.

• You
 cannot allocate Purchase Payments or transfer Unadjusted Account Value to or from the AST Investment Grade Bond Portfolio. **A** **summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **.** In addition, you can find a copy of the AST
 Investment Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>.

• Transfers
 to and from the Permitted Variable Options, the DCA Market Value Adjustment Options, and the AST Investment Grade Bond Portfolio
 triggered by the predetermined mathematical formula will not count toward the maximum number of free transfers allowable under
 an Annuity.

• Upon
 inception of the benefit, 100% of your Unadjusted Account Value must be allocated to the Permitted Variable Options. We may amend
 the Permitted Variable Options from time to time. Changes to Permitted Variable Options, or to the requirements as to how you may
 allocate your Unadjusted Account Value with this benefit, will apply to new elections of the benefit and may apply to current participants
 in the benefit. To the extent that changes apply to current participants in the benefit, they will apply only upon re-allocation of Unadjusted
 Account Value, or to any additional Purchase Payments that are made after the changes go into effect. That is, we will not require
 such current participants to reallocate Unadjusted Account Value to comply with any new requirements.

• If
 you elected this benefit, you may be required to reallocate to different Variable Options if you are currently invested in non-permitted Variable Options.
 On the Valuation Day we receive your request in Good Order, we will (i) sell Units of the non-permitted Variable Options and
 (ii) invest the proceeds of those sales in the Variable Options that you have designated. During this reallocation process, your Unadjusted
 Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected
 benefit will commence at the close of business on the following Valuation Day. Thus, the protection afforded by the newly-elected
 benefit will not begin until the close of business on the following Valuation Day.

• Any
 Death Benefit, including any optional Death Benefit that you elect, will terminate if withdrawals taken under Spousal Highest Daily Lifetime
 Income reduce your Unadjusted Account Value to zero. This means that any Death Benefit is terminated and no Death Benefit is payable
 if your Unadjusted Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or
 less than or equal to, your Annual Income Amount. (See " [<u>Triggers for Payment of the Death Benefit</u>](#chapter_11-sect1_9_956) "
 for more information.)

**Charge for Spousal Highest Daily Lifetime Income Benefit**

The maximum charge for Spousal Highest Daily Lifetime Income is 1.50% annually of the greater of the Unadjusted Account Value and Protected Withdrawal Value. As discussed in "Highest Daily Auto Step-Up" above, we may increase the fee upon a step-up under this benefit. We deduct this charge on quarterly anniversaries of the benefit effective date, based on the values on the last Valuation Day prior to the quarterly anniversary. Thus, we deduct, on a quarterly basis, 0.375% of the greater of the prior Valuation Day's Unadjusted Account Value, or the prior Valuation Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options, including the AST Investment Grade Bond Portfolio. You will begin paying this charge as of the effective date of the benefit even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments.

If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated Purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for Spousal Highest Daily Lifetime Income would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, withdrawals may reduce the Unadjusted Account Value to zero. If the Unadjusted Account Value is reduced to zero as a result of a partial withdrawal that is not a withdrawal of Excess Income and the Annual Income Amount is greater than zero, we will make payments under the benefit.

**Election of and Designations under the Benefit**

Spousal Highest Daily Lifetime Income can only be elected based on two designated lives. Designated lives must be natural persons who are each other's spouses at the time of election of the benefit. Currently, Spousal Highest Daily Lifetime Income only may be elected if the Owner, Annuitant, and Beneficiary designations are as follows:

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the sole Beneficiary is the Owner's spouse. Each Owner/Annuitant
 and the Beneficiary must be at least 45 years old at the time of election; or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The Beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. Each Owner must be at least 45 years old at the time of election; or

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the Beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. Each of the Annuitant and the Contingent Annuitant must
 be at least 45 years old at the time of election.

We do not permit a change of Owner under this benefit, except as follows: (a) if one Owner dies and the surviving spousal Owner assumes the Annuity, or (b) if the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of Beneficiary designations under this benefit, however if the Beneficiary is changed, the benefit may not be eligible to be continued upon the death of the first designated life. If the designated lives divorce, Spousal Highest Daily Lifetime Income may not be divided as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity appoint a new designated life upon re-marriage. Our current administrative procedure is to treat the division of an Annuity as a withdrawal from the existing Annuity. Any applicable CDSC will apply to such a withdrawal. The non-Owner spouse may then decide whether s/he wishes to use the withdrawn funds to purchase a new Annuity, subject to the rules that are current at the time of purchase.

Spousal Highest Daily Lifetime Income can be elected at the time that you purchase your Annuity or after the Issue Date, subject to its availability, and our eligibility rules and restrictions. If you elect Spousal Highest Daily Lifetime Income and terminate it, you cannot re-elect it. See "[<u>Termination of</u> <u>Existing Benefits and Election of New Benefits</u>](#achapter_11-sect1_2_956)" for information pertaining to elections, termination and re-election of benefits. **Please note that if you** **terminate a living benefit and elect Spousal Highest Daily Lifetime Income, you lose the guarantees that you had accumulated under your** **existing benefit, and your guarantees under Spousal Highest Daily Lifetime Income will be based on your Unadjusted Account Value on the** **effective date of Spousal Highest Daily Lifetime Income.** You and your financial professional should carefully consider whether terminating your existing benefit is appropriate for you. There is no guarantee that any benefit will be available for election at a later date.

If you wish to elect this benefit and you are currently participating in a systematic withdrawal program, amounts withdrawn under the program must be taken on a proportional basis from your Annuity's Variable Options (i.e., in direct proportion to the proportion that each such Variable Option bears to your total Account Value) in order for you to be eligible for the benefit. Thus, you may not elect Spousal Highest Daily Lifetime Income so long as you participate in a systematic withdrawal program in which withdrawals are not taken on a proportional basis.

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and you cannot re-elect the benefit.

**The benefit automatically terminates upon the first to occur of the following:** 

**(I)** **upon our receipt of Due Proof of Death of the first designated life, if the surviving spouse opts to take the death** **benefit under the Annuity (rather than continue the Annuity) or if the surviving spouse is not an eligible designated** **life;** 

**(II)** **upon the death of the second designated life;** 

**(III)** **your termination of the benefit;** 

**(IV)** **your surrender of the Annuity;** 

**(V)** **the Latest Annuity Date or your election to begin receiving annuity payments (although if you have elected to take** **annuity payments in the form of the Annual Income Amount, we will continue to pay the Annual Income Amount);** 

**(VI)** **both the Unadjusted Account Value and Annual Income Amount equal zero; or** 

**(VII)** **you cease to meet our requirements as described in "Election of and Designations under the Benefit" above or if we** **process a requested change that is not consistent with our allowed Owner, Annuitant or Beneficiary designations.** **\*** 

\* Prior to terminating the benefit, we will send you written notice and provide you with an opportunity to change your designations.

"Due Proof of Death" is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claim forms from at least one Beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary.

Upon termination of Spousal Highest Daily Lifetime Income other than upon the death of the second Designated Life or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. This final charge will be deducted even if it results in the Unadjusted Account Value falling below the Account Value Floor. However, if the amount in the Variable Options is not enough to pay the charge, we will reduce the fee to no more than the amount in the Variable Options. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options, and (ii) unless you are participating in an asset allocation program (i.e., Automatic Rebalancing Program, or 6 or 12 Month DCA Program for which we are providing administrative support), transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If, prior to the transfer from the AST Investment Grade Bond Portfolio, the Unadjusted Account Value in the Variable Options is zero, we will transfer such amounts to the AST Government Money Market Variable Option.

------

[Back to **Table of Contents**](#TOC_956)

**How Spousal Highest Daily Lifetime Income Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST** **Investment Grade Bond Portfolio**

See "How Highest Daily Lifetime Income Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio" in the discussion of Highest Daily Lifetime Income above for information regarding this component of the benefit.

**Additional Tax Considerations**

Please see the "Additional Tax Considerations" section under Highest Daily Lifetime Income above.

------

[Back to **Table of Contents**](#TOC_956)

**APPENDIX E – HIGHEST DAILY LIFETIME INCOME 2.0, HIGHEST DAILY LIFETIME INCOME 2.0** **WITH LIFETIME INCOME ACCELERATOR, SPOUSAL HIGHEST DAILY LIFETIME INCOME 2.0,** **HIGHEST DAILY LIFETIME INCOME 2.0 WITH HIGHEST DAILY DEATH BENEFIT, AND SPOUSAL** **HIGHEST DAILY LIFETIME INCOME 2.0 WITH HIGHEST DAILY DEATH BENEFIT – NO LONGER** **AVAILABLE FOR NEW ELECTIONS**

------

These benefits were offered August 20, 2012 to February 24, 2013.

**Effective December 31, 2020, we are no longer accepting additional Purchase Payments for Annuities that have these benefits.**

**HIGHEST DAILY LIFETIME INCOME 2.0 BENEFIT**

Highest Daily Lifetime Income 2.0 is a lifetime guaranteed minimum withdrawal benefit, under which, subject to the terms of the benefit, we guarantee your ability to take a certain annual withdrawal amount for life. We reserve the right, in our sole discretion, to cease offering this benefit for new elections, at any time.

We offer a benefit that guarantees until the death of the single designated life (the Annuitant) the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Unadjusted Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the rest of your life provided that you do not take withdrawals of Excess Income that result in your Unadjusted Account Value being reduced to zero. We also permit you to designate the first withdrawal from your Annuity as a one-time "Non-Lifetime Withdrawal". You may wish to take a Non-Lifetime Withdrawal if you have an immediate need for access to your Account Value but do not wish to begin lifetime payments under the optional living benefit. All other partial withdrawals from your Annuity are considered a "Lifetime Withdrawal" under the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Unadjusted Account Value is reduced to zero (for any reason other than due to partial withdrawals of Excess Income). Highest Daily Lifetime Income 2.0 may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Variable Option performance will not affect your ability to receive annual payments. You are not required to take withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. An integral component of Highest Daily Lifetime Income 2.0 is the predetermined mathematical formula we employ that may periodically transfer your Unadjusted Account Value to and from the AST Investment Grade Bond Portfolio. See the section below entitled "How Highest Daily Lifetime Income 2.0 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio."

The income benefit under Highest Daily Lifetime Income 2.0 currently is based on a single "designated life" who is at least 50 years old on the benefit effective date. Highest Daily Lifetime Income 2.0 is not available if you elect any other optional living benefit. As long as your Highest Daily Lifetime Income 2.0 is in effect, you must allocate your Unadjusted Account Value in accordance with the Permitted Variable Options and other Investment Option(s) available with this benefit. **For a more detailed description of the permitted Investment Options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956)**.**

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Unadjusted Account Value falls to zero,** **if any withdrawal is a withdrawal of Excess Income (as described below) and brings your Unadjusted Account Value to zero, your Annual** **Income Amount also would fall to zero, and the benefit and the Annuity then would terminate. In that scenario, no further amount would be** **payable under Highest Daily Lifetime Income 2.0. As to the impact of such a scenario on any other optional benefit you may have, please see** **the applicable section in this prospectus.**

You may also participate in the 6 or 12 Month DCA Program if you elect Highest Daily Lifetime Income 2.0, subject to the 6 or 12 Month DCA Program's rules. See the section of this prospectus entitled "[<u>Transfer and Rebalancing Programs - 6 or 12 Month Dollar Cost Averaging Program</u>](#chapter_9-sect1_3_956)" for details. No Long-Term Market Value Adjustment Option is permitted if you elect any optional benefit.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is only used to calculate the initial Annual Income Amount and the benefit fee. The Protected Withdrawal Value is separate from your Unadjusted Account Value and not available as cash or a lump sum withdrawal. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Unadjusted Account Value. On each Valuation Day thereafter, until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraphs.

------

[Back to **Table of Contents**](#TOC_956)

The "Periodic Value" is initially equal to the Unadjusted Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. The Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 5% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment (including any associated Purchase Credits) made on the Current Valuation Day; and

2. the
 Unadjusted Account Value on the current Valuation Day.

If you have not made a Lifetime Withdrawal on or before the 12<sup>th</sup> Anniversary of the effective date of the benefit, your Periodic Value on the 12<sup>th</sup> Anniversary of the benefit effective date is equal to the greater of:

1. the
 Periodic Value described above, or

2. the
 sum of (a), (b) and (c) below proportionally reduced for any Non-Lifetime Withdrawals:

(a) 200% of the Unadjusted Account Value on the effective date of the benefit including any Purchase Payments (including any associated Purchase Credits) made on that day;

(b) 200% of all Purchase Payments (including any associated Purchase Credits) made within one year following the effective date of the benefit; and

(c) all Purchase Payments (including any associated Purchase Credits) made after one year following the effective date of the benefit.

This means that if you do not take a Lifetime Withdrawal on or before the 12<sup>th</sup> benefit anniversary, your Protected Withdrawal Value on the 12<sup>th</sup> benefit anniversary will be at least double (200%) your initial Protected Withdrawal Value established on the date of benefit election. If you begin taking Lifetime Withdrawals prior to your 12<sup>th</sup> benefit anniversary, however, these automatic increases will not occur. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Unadjusted Account Value upon any step-up, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals (see the examples that begin immediately prior to the sub-heading below entitled "Example of dollar-for-dollar reductions").

**Please note that if you elect Highest Daily Lifetime Income 2.0, your Account Value is not guaranteed, can fluctuate and may lose value.**

**Key Feature – Annual Income Amount under Highest Daily Lifetime Income 2.0**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the Annuitant on the date of the first Lifetime Withdrawal. The percentages are: 3% for ages 50-54; 4% for ages 55 to 64; 5% for ages 65 to 84, and 6% for ages 85 or older. Under Highest Daily Lifetime Income 2.0, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year and also will reduce the Protected Withdrawal Value on a dollar-for-dollar basis. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Excess Income also will reduce the Protected Withdrawal Value by the same ratio.

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal is a withdrawal of Excess Income.

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of Excess Income, you cannot request
 an amount that would result in cumulative withdrawals in that Annuity Year exceeding your Annual Income Amount.

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of Excess Income, the amount you request plus the amount of any applicable CDSC and/or tax withholding cannot
 cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of Excess Income than if you request a gross withdrawal.

You may use the systematic withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit and must be taken as a gross withdrawal.

------

[Back to **Table of Contents**](#TOC_956)

Any Purchase Payment that you make subsequent to the election of Highest Daily Lifetime Income 2.0 and subsequent to the first Lifetime Withdrawal will (i) immediately increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including any associated Purchase Credits) based on the age of the Annuitant at the time of the first Lifetime Withdrawal (the percentages are: 3% for ages 50-54; 4% for ages 55 to 64; 5% for ages 65 to 84, and 6% for ages 85 or older) and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including any associated Purchase Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of Highest Daily Lifetime Income 2.0. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Auto Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Unadjusted Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the Annuitant on the Annuity Anniversary as of which the step-up would occur. The percentages are: 3% for ages 50-54; 4% for ages 55 to 64; 5% for ages 65-84, and 6% for ages 85 or older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. We will not automatically increase your Annual Income Amount solely as a result of your attaining a new age that is associated with a new age-based percentage. The Unadjusted Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. All daily valuations and annual step-ups will only occur on a Valuation Day. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary, by performing a similar examination of the Unadjusted Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Unadjusted Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Highest Daily Lifetime Income 2.0 has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Highest Daily Lifetime Income 2.0 upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should consult with your financial professional and carefully evaluate whether the amount of the step- up justifies the increased fee to which you will be subject. Any such increased charge will not be greater than the maximum charge set forth in the table entitled "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)."

If you are enrolled in a systematic withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount. You must notify us in order to increase the withdrawal amount of any systematic withdrawal program.

Highest Daily Lifetime Income 2.0 does not affect your ability to take partial withdrawals under your Annuity, or limit your ability to take partial withdrawals that exceed the Annual Income Amount. Under Highest Daily Lifetime Income 2.0, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in any Annuity Year are less than the Annual Income Amount, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years. If your cumulative Lifetime Withdrawals in an Annuity Year exceed the Annual Income Amount, your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules).

Because both the Protected Withdrawal Value and Annual Income Amount are determined in a way that is not solely related to Unadjusted Account Value, it is possible for the Unadjusted Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime Income 2.0 or any other fees and charges under the Annuity. Assume the following for all three examples:

• The
 Issue Date is November 1, 2012

• Highest
 Daily Lifetime Income 2.0 is elected on August 1, 2013

• The
 Annuitant was 70 years old when he/she elected Highest Daily Lifetime Income 2.0

• The
 first withdrawal is a Lifetime Withdrawal

------

[Back to **Table of Contents**](#TOC_956)

**Example of Dollar-for-Dollar Reductions**

On October 24, 2013, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the designated life is between the ages of 65 and 84 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including October 31, 2013) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500).

**Example of Proportional Reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on October 29, 2013 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $1,500 reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the Excess Income to the Account Value immediately prior to the Excess Income. (Note that if there are other future withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before Lifetime withdrawal | $118000.00 |
|  Amount of "non" Excess Income | $3500.00 |
|  Account Value immediately before Excess Income of $1,500 | $114500.00 |
|  Excess Income amount | $1500.00 |
|  Ratio ($1,500/$114,500 = 1.31%) | 1.31% |
|  Annual Income Amount | $6000.00 |
|  1.31% Reduction in Annual Income Amount | $78.60 |
|  Annual Income Amount for Future Annuity Years | $5921.40 |

---

**Example of Highest Daily Auto Step-up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

------

[Back to **Table of Contents**](#TOC_956)

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Highest Daily Lifetime Income 2.0. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_8_956)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described earlier in this section will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with Highest Daily Lifetime Income 2.0. You must tell us at the time you take the withdrawal if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under Highest Daily Lifetime Income 2.0. If you do not designate the withdrawal as a Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Annual Income Amount, which is based on your Protected Withdrawal Value. Once you elect to take the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken. If you do not take a Non-Lifetime Withdrawal before beginning Lifetime Withdrawals, you lose the ability to take it.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value. It will also proportionally reduce the Periodic Value guarantee on the twelfth anniversary of the benefit effective date (see description in "Key Feature – Protected Withdrawal Value," above). It will reduce both by the percentage the total withdrawal amount (including any applicable CDSC) represents of the then current Account Value immediately prior to the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a systematic withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first withdrawal under the program will be considered a Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit.

Assume the following:

• The
 Issue Date is December 3

• Highest
 Daily Lifetime Income 2.0 is elected on September 4

• The
 Unadjusted Account Value at benefit election was $105,000

• The
 Annuitant was 70 years old when he/she elected Highest Daily Lifetime Income 2.0

• No
 previous withdrawals have been taken under Highest Daily Lifetime Income 2.0

On October 3, the Protected Withdrawal Value is $125,000, the 12<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000, and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on October 3 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with Highest Daily Lifetime Income 2.0 will be reduced by the ratio of the total withdrawal amount to the Account Value just prior to the withdrawal being taken.

------

[Back to **Table of Contents**](#TOC_956)

**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal amount | $15000 |
|  Divided by Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio | (12.5%) |
|  Protected Withdrawal Value | $109375 |
|  12<sup>th</sup> benefit year Minimum Periodic Value | $183750 |

---

**Required Minimum Distributions**

Required Minimum Distributions ("RMD") for this Annuity must be taken by April 1<sup>st</sup> in the year following the date you turn the applicable age and by December 31<sup>st</sup> for subsequent calendar years. See "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for more information about the applicable age and further discussions of RMDs. If the annual RMD amount is greater than the Annual Income Amount, a withdrawal of the RMD amount will not be treated as a withdrawal of Excess Income, as long as the RMD amount is calculated by us for this Annuity and administered under a program we support each calendar year. If you are not participating in an RMD withdrawal program each calendar year, you can alternatively satisfy the RMD amount without it being treated as a withdrawal of Excess Income as long as the below rules are applied.

A "Calendar Year" runs from January 1 to December 31 of that year.

Withdrawals made from the Annuity during an Annuity Year to meet the RMD provisions of the Code will not be treated as withdrawals of Excess Income if they are taken during one Calendar Year.

If Lifetime Withdrawals are taken over two Calendar Years, the amount that will not be treated as a withdrawal of Excess Income is:

• the
 remaining Annual Income Amount for that Annuity Year; plus

• the
 second Calendar Year's RMD amount minus the Annual Income Amount (the result of which cannot be less than zero).

**Example**

The following example is purely hypothetical and intended to illustrate the scenario described above. Note that withdrawals must comply with all IRS guidelines in order to satisfy the RMD for the current calendar year.

---

| | | |
|:---|:---|:---|
|  **First Calendar Year** | **Annuity Year** | **Second Calendar Year** |
|  01/01/2021 to 12/31/2021 | 06/01/2021 to 05/31/2022 | 01/01/2022 to 12/31/2022 |

---

Assume the following:

• RMD
 Amount for Both Calendar Years = $6,000;

• Annual
 Income Amount = $5,000; and

• A
 withdrawal of $2,000 was taken on 07/01/2021 (during the First Calendar Year) resulting in a remaining Annual Income Amount for the Annuity
 Year of $3,000.

The amount that can be taken between 01/03/2022 and 05/31/2022 without creating a withdrawal of Excess Income is $4,000. Here is the calculation:

• The
 remaining Annual Income for that Annuity Year ($3,000); plus

• The
 Second Calendar Year's RMD Amount minus the Annual Income Amount ($6,000 - $5,000 = $1,000).

If the $4,000 is withdrawn during the Annuity Year, the remaining Annual Income Amount will be $0 and the remaining RMD amount for the Second Calendar Year ($2,000) may be taken in the next Annuity Year beginning on 06/01/2022.

Other Important Information

• If,
 in any Annuity Year, your RMD amount is less than your Annual Income Amount, any withdrawals in excess of the Annual Income Amount
 will be treated as Excess Income.

• If
 you do not comply with the rules described above, any withdrawal that exceeds the Annual Income Amount will be treated as a withdrawal
 of Excess Income, which will reduce your Annual Income Amount in future Annuity Years. This may include a situation where you
 comply with the rules described above and then decide to take additional withdrawals after satisfying your RMD from the Annuity.

• If
 you take a partial withdrawal to satisfy RMD and designate that withdrawal as a Non-Lifetime Withdrawal, please note that all Non-Lifetime
 Withdrawal provisions will apply.

------

[Back to **Table of Contents**](#TOC_956)

**Benefits Under Highest Daily Lifetime Income 2.0**

• To
 the extent that your Unadjusted Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that
 are less than or equal to the Annual Income Amount, and amounts are still payable under Highest Daily Lifetime Income 2.0, we will make
 an additional payment, if any, for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year. Thus, in that scenario,
 the remaining Annual Income Amount would be payable even though your Unadjusted Account Value was reduced to zero. In subsequent
 Annuity Years we make payments that equal the Annual Income Amount as described in this section. We will make payments until
 the death of the single designated life. After the Unadjusted Account Value is reduced to zero, you will not be permitted to make additional
 Purchase Payments to your Annuity. **To the extent that cumulative partial withdrawals in an Annuity Year exceed the** **Annual Income Amount ("Excess Income") and reduce your Unadjusted Account Value to zero, Highest Daily Lifetime Income** **2.0 terminates, we will make no further payments of the Annual Income Amount and no additional Purchase Payments will be** **permitted. However, if a partial withdrawal in the latter scenario was taken to satisfy a Required Minimum Distribution (as** **described above) under the Annuity, then the benefit will not terminate, and we will continue to pay the Annual Income Amount** **in subsequent Annuity Years until the death of the designated life.** 

• Please
 note that if your Unadjusted Account Value is reduced to zero, all payments in each Annuity Year subsequent to the Annuity Year your
 Account Value is reduced to zero will be treated as annuity payments. Also, any Death Benefit will terminate if withdrawals reduce your
 Unadjusted Account Value to zero. This means that any Death Benefit is terminated and no Death Benefit is payable if your Unadjusted
 Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal
 to, your Annual Income Amount.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

1. apply
 your Unadjusted Account Value, less any applicable tax charges, to any annuity option available; or

2. request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 If this option is elected, the Annual Income Amount will not increase after annuity payments have begun. We will make payments
 until the death of the single designated life. We must receive your request in a form acceptable to us at our Service Center.
 If applying your Unadjusted Account Value, less any applicable tax charges, to the life-only annuity payment rates results in a
 higher annual payment, we will give you the higher annual payment.

• In
 the absence of an election when mandatory annuity payments are to begin we currently make annual annuity payments in the form of a single
 life fixed annuity with eight payments certain, by applying the greater of the annuity rates then currently available or the annuity rates
 guaranteed in your Annuity. We reserve the right at any time to increase or decrease the period certain in order to comply with the Code
 (e.g., to shorten the period certain to match life expectancy under applicable IRS tables). The amount that will be applied to provide such annuity payments
 will be the greater of:

1. the
 present value of the future Annual Income Amount payments (if no Lifetime Withdrawal was ever taken, we will calculate the Annual
 Income Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin). Such present value
 will be calculated using the greater of the single life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed
 in your Annuity; and

2. the
 Unadjusted Account Value.

**Other Important Considerations**

• Withdrawals
 under Highest Daily Lifetime Income 2.0 are subject to all of the terms and conditions of the Annuity, including any applicable CDSC
 for the Non-Lifetime Withdrawal as well as partial withdrawals that exceed the Annual Income Amount. If you have an active systematic
 withdrawal program running at the time you elect this benefit, the first systematic withdrawal that processes after your election of
 the benefit will be deemed a Lifetime Withdrawal. Withdrawals made while Highest Daily Lifetime Income 2.0 is in effect will be treated, for tax purposes,
 in the same way as any other withdrawals under the Annuity. Any withdrawals made under the benefit will be taken on a proportional
 basis from the Variable Options (including the AST Investment Grade Bond Portfolio) and the DCA Market Value Adjustment Options.
 If you have an active systematic withdrawal program running at the time you elect this benefit, the program must withdraw funds on
 a proportional basis.

• Any
 Lifetime Withdrawal that does not cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount is not subject
 to a CDSC, even if the total amount of such withdrawals in any Annuity Year exceeds the maximum Free Withdrawal amount. For example,
 if your Free Withdrawal amount is $10,000 and your Annual Income Amount is $11,000, withdrawals of your entire Annual Income
 Amount in any Annuity Year would not trigger a CDSC. If you withdrew $12,000, however, $1,000 would be subject to a CDSC.

• You
 should carefully consider when to begin taking Lifetime Withdrawals. If you begin taking withdrawals early, you may maximize the time
 during which you may take Lifetime Withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals
 reduce your Unadjusted Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss
 with your financial professional when it may be appropriate for you to begin taking Lifetime Withdrawals.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• You
 cannot allocate Purchase Payments or transfer Unadjusted Account Value to or from the AST Investment Grade Bond Portfolio. **A** **summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) . You
 can find a copy of the AST Investment
 Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>.

• Transfers
 to and from the Permitted Variable Options, the DCA Market Value Adjustment Options, and the AST Investment Grade Bond Sub-
 account triggered by the predetermined mathematical formula will not count toward the maximum number of free transfers allowable under
 an Annuity.

• Upon
 election of the benefit, 100% of your Unadjusted Account Value must be allocated to the Permitted Variable Options. We may amend the
 Permitted Variable Options from time to time. Changes to the Permitted Variable Options, or to the requirements as to how you may allocate
 your Account Value with this benefit, will apply to new elections of the benefit and may apply to current participants in the benefit. To the extent that
 changes apply to current participants in the benefit, they will only apply upon re-allocation of Account Value, or upon addition
 of subsequent Purchase Payments. That is, we will not require such current participants to re-allocate Account Value to comply with
 any new requirements.

• If
 you elected this benefit, you may be required to reallocate to different Variable Options if you are currently invested in non-permitted Variable Options.
 On the Valuation Day we receive your request in Good Order, we will (i) sell Units of the non-permitted Variable Options and
 (ii) invest the proceeds of those sales in the Variable Options that you have designated. During this reallocation process, your Unadjusted
 Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected
 benefit will commence at the close of business on the following Valuation Day. Thus, the protection afforded by the newly-elected
 benefit will not begin until the close of business on the following Valuation Day.

• Any
 Death Benefit will terminate if withdrawals taken under Highest Daily Lifetime Income 2.0 reduce your Unadjusted Account Value to zero.
 This means that any Death Benefit is terminated and no Death Benefit is payable if your Unadjusted Account Value is reduced to zero
 as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal to, your Annual Income Amount. (See
 " [<u>Triggers for Payment of the Death Benefit</u>](#chapter_11-sect1_9_956) "
 for more information.)

• The
 maximum charge for Highest Daily Lifetime Income 2.0 is 2.00% annually of the greater of the Unadjusted Account Value and Protected
 Withdrawal Value. As discussed in "Highest Daily Auto Step-Up" above, we may increase the fee upon a step-up under this benefit.
 We deduct this charge on quarterly anniversaries of the benefit effective date, based on the values on the last Valuation Day prior to
 the quarterly anniversary. Thus, we deduct, on a quarterly basis, 0.50% of the greater of the prior Valuation Day's Unadjusted Account Value and the prior
 Valuation Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options,
 including the AST Investment Grade Bond Portfolio. You will begin paying this charge as of the effective date of the benefit even if
 you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals and/or
 if you never receive any lifetime income payments.

If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated Purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for Highest Daily Lifetime Income 2.0 would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, partial withdrawals may reduce the Unadjusted Account Value to zero. If this happens and the Annual Income Amount is greater than zero, we will make payments under the benefit.

**Election of and Designations under the Benefit**

For Highest Daily Lifetime Income 2.0, there must be either a single Owner who is the same as the Annuitant, or if the Annuity is entity owned, there must be a single natural person Annuitant. In either case, the Annuitant must be at least 50 years old. Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime Income 2.0. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime Income 2.0, except if (a) the new Owner has the same taxpayer identification number as the previous Owner, (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

Highest Daily Lifetime Income 2.0 can be elected at the time that you purchase your Annuity or after the Issue Date, subject to its availability, and our eligibility rules and restrictions. If you elect Highest Daily Lifetime Income 2.0 and terminate it, you cannot re-elect it. See "[<u>Termination of Existing Benefits</u> <u>and Election of New Benefits</u>](#achapter_11-sect1_2_956)" for information pertaining to elections, termination and re-election of benefits. **Please note that if you terminate a living** **benefit and elect Highest Daily Lifetime Income 2.0, you lose the guarantees that you had accumulated under your existing benefit and your** **guarantees under Highest Daily Lifetime Income 2.0 will be based on your Unadjusted Account Value on the effective date of Highest Daily** **Lifetime Income 2.0.** You and your financial professional should carefully consider whether terminating your existing benefit is appropriate for you. There is no guarantee that any benefit will be available for election at a later date.

------

[Back to **Table of Contents**](#TOC_956)

If you wish to elect this benefit and you are currently participating in a systematic withdrawal program, amounts withdrawn under the program must be taken on a proportional basis from your Annuity's Variable Options (i.e., in direct proportion to the proportion that each such Variable Option bears to your total Account Value) in order for you to be eligible for the benefit. Thus, you may not elect Highest Daily Lifetime Income 2.0 so long as you participate in a systematic withdrawal program in which withdrawals are not taken on a proportional basis.

**Termination of the Benefit**

You may terminate Highest Daily Lifetime Income 2.0 at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and you cannot re-elect the benefit.

**The benefit automatically terminates upon the first to occur of the following:**

**1.** **your termination of the benefit;** 

**2.** **your surrender of the Annuity;** 

**3.** **the Latest Annuity Date or your election to begin receiving annuity payments (although if you have elected to receive the Annual** **Income Amount in the form of annuity payments, we will continue to pay the Annual Income Amount);** 

**4.** **our receipt of Due Proof of Death of the Owner or Annuitant (for entity-owned annuities);** 

**5.** **both the Unadjusted Account Value and Annual Income Amount equal zero; or** 

**6.** **you cease to meet our requirements as described in "Election of and Designations under the Benefit" above or if we process a** **requested change that is not consistent with our allowed Owner, Annuitant or Beneficiary designations.** **\*** 

\* Prior to terminating the benefit, we will send you written notice and provide you with an opportunity to change your designations.

"Due Proof of Death" is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claim forms from at least one Beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary.

Upon termination of Highest Daily Lifetime Income 2.0, other than upon the death of the Annuitant or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. However, if the amount in the Variable Options is not enough to pay the charge, we will reduce the fee to no more than the amount in the Variable Options. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Sub- accounts, and (ii) unless you are participating in an asset allocation program (i.e., Automatic Rebalancing Program, or 6 or 12 Month DCA Program for which we are providing administrative support), transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If, prior to the transfer from the AST Investment Grade Bond Portfolio, the Unadjusted Account Value in the Variable Options is zero, we will transfer such amounts to the AST Government Money Market Variable Option.

If a surviving spouse elects to continue the Annuity, Highest Daily Lifetime Income 2.0 terminates upon Due Proof of Death. The spouse may newly elect the benefit subject to the restrictions discussed above.

**How Highest Daily Lifetime Income 2.0 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment** **Grade Bond Portfolio.**

**Overview of the Predetermined Mathematical Formula**

Our goal is to seek a careful balance between providing value-added products, such as the Highest Daily Lifetime Income 2.0 suite of benefits, while managing the risk to Pruco Life associated with offering these products. One of the key features that helps us accomplish that balance and an integral part of the Highest Daily Lifetime Income 2.0 suite is the predetermined mathematical formula used to transfer Unadjusted Account Value between the Permitted Variable Options and the AST Investment Grade Bond Portfolio, referred to in this section as the "Bond Sub- account". The formula is designed primarily to mitigate some of the financial risks that we incur in providing the guarantee under the Highest Daily Lifetime Income 2.0 suite of benefits. The formula is not investment advice.

**The formula is set forth in** [**<u>Appendix I</u>**](#chapter_26-sect1_1_956) **(and is described below).**

The predetermined mathematical formula ("formula") monitors each individual contract each Valuation Day that the benefit is in effect on your Annuity, in order to help us manage guarantees through all market cycles. It helps manage the risk to us associated with these benefits, which is generally represented by the gap between your Unadjusted Account Value and the Protected Withdrawal Value. As the gap between these two values increases, the formula will determine if and how much money should be transferred into the Bond Portfolio. This movement is intended to reduce the equity risk we will bear in funding our obligation associated with these benefits. As the gap decreases (due to favorable performance of the Unadjusted Account Value), the formula then determines if and how much money should transfer back into the Permitted Variable Options. The use of the formula, combined with restrictions on the Variable Options you are allowed to invest in, lessens the risk that your Unadjusted Account Value will be reduced to zero while you are still alive, thus reducing the likelihood that we will make any lifetime income payments under this benefit. The formula may also limit the potential for your Account Value to grow.

------

[Back to **Table of Contents**](#TOC_956)

However, in addition to providing lifetime income when your Account Value is reduced to zero, Highest Daily Lifetime Income 2.0 can potentially dampen the impact of volatility on your Account Value during extreme market downturns by transferring assets from your chosen investments into the Bond Portfolio as described above. This occurs pursuant to the predetermined mathematical formula, which can limit the possibility or reduce the amount of a significant loss of Account Value, and potentially provide a higher income stream in retirement.

The formula is not forward looking and contains no predictive or projective component with respect to the markets, the Unadjusted Account Value or the Protected Withdrawal Value. We are not providing you with investment advice through the use of the formula nor does the formula constitute an investment strategy that we are recommending to you. The formula may limit the potential for your Account Value to grow

**<u>Transfer Activity Under the Formula</u>**

Prior to the first Lifetime Withdrawal, the primary driver of transfers to the Bond Portfolio is the difference between your Unadjusted Account Value and your Protected Withdrawal Value. If none of your Unadjusted Account Value is allocated to the Bond Portfolio, then over time the formula permits an increasing difference between the Unadjusted Account Value and the Protected Withdrawal Value before a transfer to the Bond Portfolio occurs. Therefore, over time, assuming none of the Unadjusted Account Value is allocated to the Bond Portfolio, the formula will allow for a greater decrease in the Unadjusted Account Value before a transfer to the Bond Portfolio is made.

It is important to understand that transfers within your Annuity are specific to the performance of your chosen Investment Options, the performance of the Bond Portfolio while Account Value is allocated to it, as well as how long the benefit has been owned. For example, two contracts purchased on the same day, but invested differently, will likely have different results, as would two contracts purchased on different days with the same Investment Options.

Each market cycle is unique, therefore the performance of your Variable Options, and its impact on your Unadjusted Account Value, will differ from market cycle to market cycle, therefore producing different transfer activity under the formula. The amount and timing of transfers to and from the Bond Portfolio depend on various factors unique to your Annuity and are not necessarily directly correlated with the securities markets, bond markets, interest rates or any other market or index. Some of the factors that determine the amount and timing of transfers (as applicable to your Annuity), include:

• The
 difference between your Unadjusted Account Value and your Protected Withdrawal Value;

• The
 amount of time the benefit has been in effect on your Annuity;

• The
 amount allocated to and the performance of the Permitted Variable Options and the Bond Portfolio;

• Any
 additional Purchase Payments you make to your Annuity (while the benefit is in effect); and

• Any
 withdrawals you take from your Annuity (while the benefit is in effect).

Under the formula, investment performance of your Unadjusted Account Value that is negative, flat, or even moderately positive may result in a transfer of a portion of your Unadjusted Account Value in the Permitted Variable Options to the Bond Portfolio.

At any given time, some, most or none of your Unadjusted Account Value will be allocated to the Bond Portfolio, as dictated by the formula.

The amount allocated to the Bond Portfolio and the amount allocated to the Permitted Variable Options each is a variable in the formula. Therefore, the investment performance of each affects whether a transfer occurs for your Annuity. As the amounts allocated to either the Bond Portfolio or the Permitted Variable Options increase, the performance of those Variable Options will have a greater impact on your Unadjusted Account Value and hence a greater impact on if (and how much of) your Unadjusted Account Value is transferred to or from the Bond Portfolio. It is possible that if a significant portion of your Unadjusted Account Value is allocated to the Bond Portfolio and that Variable Option has positive performance, the formula might transfer a portion of your Unadjusted Account Value to the Permitted Variable Options, even if the performance of your Permitted Variable Options is negative. Conversely, if a significant portion of your Unadjusted Account Value is allocated to the Bond Portfolio and that Variable Option has negative performance, the formula may transfer additional amounts from your Permitted Variable Options to the Bond Portfolio even if the performance of your Permitted Variable Options is positive.

**<u>How the Formula Operates</u>**

Generally, the formula, which is applied each Valuation Day, takes four steps in determining any applicable transfers within your Annuity.

1. First,
 the formula starts by identifying the value of future income payments we expect to pay. We refer to that value as the "Target Value" or "L".

2. Second,
 we subtract any amounts invested in the Bond Portfolio ("B") from the Target Value and divide that number by the amount invested
 in the Permitted Variable Options ("V <sub>V</sub> + V <sub>F</sub> ")
 where "V <sub>V</sub> "
 is the current Account Value of the elected Variable Options of the Annuity,
 and "V <sub>F</sub> "
 is the current Account Value of the elected Fixed Rate Options of the Annuity. We refer to this resulting value as the "Target
 Ratio" or "R".

3. Third,
 we compare the Target Ratio to designated thresholds and other rules described in greater detail below to determine if a transfer needs
 to occur.

4. If
 a transfer needs to occur, we use another calculation to determine the amount of the transfer.

The Formula is:

R = (L – B)/(V<sub>V</sub> + V<sub>F</sub>)

------

[Back to **Table of Contents**](#TOC_956)

More specifically, the formula operates as follows:

**1.** **We calculate the Target Value (L) by multiplying the Income Basis (as defined in** [**<u>Appendix I</u>**](#chapter_26-sect1_1_956) **) for that day by 5% and by the** **applicable Annuity Factor found in** [**<u>Appendix I</u>**](#chapter_26-sect1_1_956) **.** If you have already made a Lifetime Withdrawal, your Target Value would take into account
 any automatic step-up, any subsequent Purchase Payments (including any associated Purchase Credits with respect to the X Series),
 and any withdrawals of Excess Income.

Example (assume the income basis is $200,000, and the contract is 11½ months old, resulting in an annuity factor of 14.95)<br>Target Value (L) = $200,000 × 5% × 14.95 = $149,500

2. Next,
 to calculate the Target Ratio (R), the Target Value is reduced by any amount held within the Bond Portfolio (B) on that day. The remaining
 amount is divided by the amount held within the Permitted Variable Options (V <sub>V</sub> + V <sub>F</sub>).

Example (assume the amount in the Bond Portfolio is zero, and the amount held within the Permitted Variable Options is $179,500) <br>Target Ratio (R) = ($149,500 – 0)/$179,500 = 83.3%

1. If,
 on each of three consecutive Valuation Days, the Target Ratio is greater than 83% but less than or equal to 84.5%, the formula will, on the third Valuation
 Day, make a transfer from your Permitted Variable Options to the Bond Portfolio (subject to the 90% cap discussed below).
 If, however, on any Valuation Day, the Target Ratio is above 84.5%, the formula will make a transfer from the Permitted Variable Options
 to the Bond Portfolio (subject to the 90% cap). Once a transfer is made, the Target Ratio must again be greater than 83% but less than
 or equal to 84.5% for three consecutive Valuation Days before a subsequent transfer to the Bond Portfolio will occur. If the Target Ratio
 falls below 78% on any Valuation Day, then a transfer from the Bond Portfolio to the Permitted Variable Options (excluding the DCA Market
 Value Adjustment Options) will occur.

Example: Assuming the Target Ratio is above 83% for a 3<sup>rd</sup> consecutive Valuation Day, but less than or equal to 84.5% for three consecutive Valuation Days, a transfer into the Bond Portfolio occurred.

2. In
 deciding how much to transfer, we perform a calculation that essentially seeks to reallocate amounts held in the Permitted Variable Options
 and the Bond Portfolio so that the Target Ratio meets a target, which currently is equal to 80% (subject to the 90% Cap discussion
 below). The further the Target Ratio is from 80% when a transfer is occurring under the formula, the greater the transfer amount
 will be.

**The 90% Cap Rule**

The formula will not execute a transfer to the Bond Portfolio that results in more than 90% of your Unadjusted Account Value being allocated to the Bond Portfolio ("90% cap") on that Valuation Day. Thus, on any Valuation Day, if the formula would require a transfer to the Bond Portfolio that would result in more than 90% of the Unadjusted Account Value being allocated to the Bond Portfolio, only the amount that results in exactly 90% of the Unadjusted Account Value being allocated to the Bond Portfolio will be transferred. Additionally, future transfers into the Bond Portfolio will not be made (regardless of the performance of the Bond Portfolio and the Permitted Variable Options) at least until there is first a transfer out of the Bond Portfolio. Once this transfer occurs out of the Bond Portfolio, future amounts may be transferred to or from the Bond Portfolio (subject to the 90% cap).

Under the operation of the formula, the 90% cap may come into and out of effect multiple times while you participate in the benefit. At no time will the formula make a transfer to the Bond Portfolio that results in greater than 90% of your Unadjusted Account Value being allocated to the Bond Portfolio. However, it is possible that, due to the investment performance of your allocations in the Bond Portfolio and your allocations in the Permitted Variable Options you have selected, your Unadjusted Account Value could be more than 90% invested in the Bond Portfolio.

**<u>Monthly Transfers</u>**

Additionally, on each monthly Annuity Anniversary (if the monthly Annuity Anniversary does not fall on a Valuation Day, the next Valuation Day will be used), following all of the above described daily calculations, if there is money allocated to the Bond Portfolio, the formula will perform an additional calculation to determine whether or not a transfer will be made from the Bond Portfolio to the Permitted Variable Options. This transfer will automatically occur provided that the Target Ratio, as described above, would be less than 83% after this transfer. The formula will not execute a transfer if the Target Ratio after this transfer would occur would be greater than or equal to 83%.

The amount of the transfer will be equal to the lesser of:

1. The
 total value of all your Unadjusted Account Value in the Bond Portfolio, or

2. An
 amount equal to 5% of your total Unadjusted Account Value.

------

[Back to **Table of Contents**](#TOC_956)

**<u>Other Important Information</u>**

• The
 Bond Portfolio is not a Permitted Variable Option. As such, only the formula can transfer Unadjusted Account Value to or from the Bond
 Portfolio. You may not allocate Purchase Payments or transfer any of your Unadjusted Account Value to or from the Bond Portfolio.

• While
 you are not notified before a transfer occurs to or from the Bond Portfolio, you will receive a confirmation statement indicating the transfer of a portion
 of your Unadjusted Account Value either to or from the Bond Portfolio. Your confirmation statements will be detailed to include
 the effective date of the transfer, the dollar amount of the transfer and the Permitted Variable Options the funds are being transferred
 to/from. Depending on the results of the calculations of the formula, we may, on any Valuation Day:

• Not
 make any transfer between the Permitted Variable Options and the Bond Portfolio; or

• If
 a portion of your Unadjusted Account Value was previously allocated to the Bond Portfolio, transfer all or a portion of those amounts
 to the Permitted
 Variable Options (as described above); or

• Transfer
 a portion of your Unadjusted Account Value in the Permitted Variable Options and the DCA Market Value Adjustment Options to the
 Bond Portfolio.

• If
 you made additional Purchase Payments to your Annuity, they will be allocated to the Permitted Variable Options and will be subject to the formula.

○ Additional
 Purchase Payments to your Annuity do not increase "B" within the formula, and may result in an additional Account Value being
 transferred to the Permitted Variable Options, or a transfer to the Bond Portfolio due to the change in the ratio.

○ If
 you make additional Purchase Payments to your Annuity while the 90% cap is in effect, the formula will not transfer any of such additional
 Purchase Payments to the Bond Portfolio at least until there is first a transfer out of the Bond Portfolio, regardless of how much
 of your Unadjusted Account Value is in the Permitted Variable Options. This means that there could be scenarios under which, because
 of the additional Purchase Payments you make, less than 90% of your entire Unadjusted Account Value is allocated to the Bond
 Portfolio, and the formula will still not transfer any of your Unadjusted Account Value to the Bond Portfolio (at least until there is first a transfer
 out of the Bond Portfolio).

• If
 you are participating in Highest Daily Lifetime Income 2.0 and you are also participating in the 6 or 12 Month DCA Program, the following
 rules apply:

• DCA
 Market Value Adjustment Options are considered "Permitted Variable Options" for purpose of the Target Ratio calculation ("L") described above.

• The
 formula may transfer amounts out of the DCA Market Value Adjustment Options to the Bond Portfolio if the amount allocated to the other
 Permitted Variable Options is insufficient to cover the amount of the transfer.

• The
 transfer formula will not allocate amounts to the DCA Market Value Adjustment Options when there is a transfer out of the Bond Portfolio.
 Such transfers will be allocated on a proportional basis to the variable Variable Options, excluding the Bond Portfolio.

• A
 Market Value Adjustment is not assessed when amounts are transferred out of the DCA Market Value Adjustment Options under the transfer
 formula.

**Additional Tax Considerations**

If you purchase an annuity as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or 403(b)) or employer plan under Code Section 401(a), the Required Minimum Distribution rules under the Code provide that you begin receiving periodic amounts beginning after the applicable age. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. See "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for more information about the applicable age and further discussions of RMDs.

As indicated, withdrawals made while this benefit is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. Please see "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for a detailed discussion of the tax treatment of withdrawals. We do not address each potential tax scenario that could arise with respect to this benefit here. However, we do note that if you participate in Highest Daily Lifetime Income 2.0 or Spousal Highest Daily Lifetime Income 2.0 through a non-qualified annuity, as with all withdrawals, once all Purchase Payments are returned under the Annuity, all subsequent withdrawal amounts will be taxed as ordinary income.

***HIGHEST DAILY LIFETIME INCOME 2.0 BENEFIT WITH LIFETIME INCOME ACCELERATOR***

We offer another version of Highest Daily Lifetime Income 2.0 that we call Highest Daily Lifetime Income 2.0 with Lifetime Income Accelerator. Highest Daily Lifetime Income 2.0 with LIA guarantees, until the death of the single designated life, the ability to withdraw an amount equal to double the Annual Income Amount (which we refer to as the "LIA Amount") if you meet the conditions set forth below. This version is only being offered in those jurisdictions where we have received regulatory approval and will be offered subsequently in other jurisdictions when we receive regulatory approval in those jurisdictions. We reserve the right, in our sole discretion, to cease offering this benefit at any time.

You may choose Highest Daily Lifetime Income 2.0 with or without also electing LIA, however you may not elect LIA without Highest Daily Lifetime Income 2.0 and you must elect the LIA benefit at the time you elect Highest Daily Lifetime Income 2.0. If you elect Highest Daily Lifetime Income 2.0 without LIA and would like to add the feature later, you must first terminate Highest Daily Lifetime Income 2.0 and elect Highest Daily Lifetime Income 2.0 with LIA (subject to availability and benefit re-election provisions). Please note that if you terminate Highest Daily Lifetime Income 2.0 and elect Highest Daily Lifetime Income 2.0 with LIA you lose the guarantees that you had accumulated under your existing benefit and will begin the new guarantees

------

[Back to **Table of Contents**](#TOC_956)

under the new benefit you elect based on your Unadjusted Account Value as of the date the new benefit becomes active. Highest Daily Lifetime Income 2.0 with LIA is offered as an alternative to other lifetime withdrawal options. If you elect this benefit, it may not be combined with any other optional living benefit or death benefit. As long as your Highest Daily Lifetime Income 2.0 with LIA benefit is in effect, you must allocate your Unadjusted Account Value in accordance with the Permitted Variable Option(s) with this benefit. The income benefit under Highest Daily Lifetime Income 2.0 with LIA currently is based on a single "designated life" who is between the ages of 50 and 75 on the date that the benefit is elected and received in Good Order. All terms and conditions of Highest Daily Lifetime Income 2.0 apply to this version of the benefit, except as described herein. As is the case with Highest Daily Lifetime Income 2.0, Highest Daily Lifetime Income 2.0 with LIA involves your participation in a predetermined mathematical formula that transfers Account Value between your Variable Options and the AST Investment Grade Bond Portfolio. Please see Highest Daily Lifetime Income 2.0 above for a description of the predetermined mathematical formula.

Highest Daily Lifetime Income 2.0 with LIA is not long-term care insurance and should not be purchased as a substitute for long-term care insurance. The income you receive through the Lifetime Income Accelerator may be used for any purpose, and it may or may not be sufficient to address expenses you may incur for long-term care or other medical or retirement expenses. You should seek professional advice to determine your financial needs for long-term care.

If this benefit is being elected on an Annuity held as a 403(b) plan, then in addition to meeting the eligibility requirements listed below for the LIA Amount you must separately qualify for distributions from the 403(b) plan itself.

The maximum charge is 2.00% annually of the greater of the Unadjusted Account Value and Protected Withdrawal Value. We deduct this charge on quarterly anniversaries of the benefit effective date. Thus, we deduct, on a quarterly basis, 0.50% of the greater of the prior Valuation Day's Unadjusted Account Value and the prior Valuation Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options, including the AST Investment Grade Bond Portfolio.

If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated Purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for Highest Daily Lifetime Income 2.0 with LIA benefit would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, withdrawals may reduce the Unadjusted Account Value to zero.

**Eligibility Requirements for LIA Amount.** Both a waiting period of 36 months from the benefit effective date and an elimination period of 120 days from the date of notification that one or both of the requirements described immediately below have been met apply before you can become eligible for the LIA Amount. The 120 day elimination period begins on the date that we receive notification from you of your eligibility for the LIA Amount. Thus, assuming the 36 month waiting period has been met and we have received the notification referenced in the immediately preceding sentence, the LIA Amount would be available for withdrawal on the Valuation Day immediately after the 120<sup>th</sup> day. The waiting period and the elimination period may run concurrently. In addition to satisfying the waiting and elimination period, at least one of the following requirements ("LIA conditions") must be met.

1. The
 designated life is confined to a qualified nursing facility. A qualified nursing facility is a facility operated pursuant to laws of any
 United States jurisdiction
 providing medically necessary in-patient care which is prescribed by a licensed physician in writing and based on physical
 limitations which prohibit daily living in a non-institutional setting.

2. The
 designated life is unable to perform two or more basic abilities of caring for oneself or "activities of daily living." We
 define these basic abilities
 as:

1. Eating:
 Feeding oneself by getting food into the body from a receptacle (such as a plate, cup or table) or by a feeding tube or intravenously.

2. Dressing:
 Putting on and taking off all items of clothing and any necessary braces, fasteners or artificial limbs.

3. Bathing:
 Washing oneself by sponge bath; or in either a tub or shower, including the task of getting into or out of the tub or shower.

4. Toileting:
 Getting to and from the toilet, getting on and off the toilet, and performing associated personal hygiene.

5. Transferring:
 Moving into or out of a bed, chair or wheelchair.

6. Continence:
 Maintaining control of bowel or bladder function; or when unable to maintain control of bowel or bladder function, the ability
 to perform personal hygiene (including caring for catheter or colostomy bag).

You must notify us in writing when the LIA conditions have been met. If, when we receive such notification, there are more than 120 days remaining until the end of the waiting period described above, you will not be eligible for the LIA Amount, and you will have to notify us again in writing in order to become eligible. If there are 120 days or less remaining until the end of the waiting period when we receive notification that the LIA conditions are met, we will determine eligibility for the LIA Amount through our then current administrative process, which may include, but is not limited to, documentation verifying the LIA conditions and/or an assessment by a third party of our choice. Such assessment may be in person and we will assume any costs associated with the aforementioned assessment. The designated life must be available for any assessment or reassessment pursuant to our administrative process requirements. Please note that you must be available in the U.S. for the assessment. Once eligibility is determined, the LIA Amount is equal to double the Annual Income Amount as described above under Highest Daily Lifetime Income 2.0.

------

[Back to **Table of Contents**](#TOC_956)

Additionally, once eligibility is determined, we will reassess your eligibility on an annual basis although your LIA benefit for the Annuity Year that immediately precedes or runs concurrent with our reassessment will not be affected if it is determined that you are no longer eligible. Your first reassessment may occur in the same year as your initial assessment. If we determine that you are no longer eligible to receive the LIA Amount, the Annual Income Amount would replace the LIA Amount on the next Annuity Anniversary (the "ineligibility effective date"). However, 1) if you were receiving income through a systematic withdrawal program that was based on your LIA Amount; 2) you subsequently become ineligible to receive your LIA Amount, and 3) we do not receive new withdrawal instructions from you prior to the ineligibility effective date, we will cancel such systematic withdrawal program on the ineligibility effective date. You will be notified of your subsequent ineligibility and the date systematic withdrawal payments will stop before either occur. If any existing systematic withdrawal program is canceled, you must enroll in a new systematic withdrawal program if you wish to receive income on a systematic basis. You may establish a new or make changes to any existing systematic withdrawal program at any time by contacting our Annuity Service Center. All "Excess Income" conditions described above in "Key Feature – Annual Income Amount under Highest Daily Lifetime Income 2.0" would apply. There is no limit on the number of times you can become eligible for the LIA Amount, however, each time would require the completion of the 120-day elimination period, notification that the designated life meets the LIA conditions, and determination, through our then current administrative process, that you are eligible for the LIA Amount, each as described above.

**LIA Amount at the first Lifetime Withdrawal.** If your first Lifetime Withdrawal subsequent to election of Highest Daily Lifetime Income 2.0 with LIA occurs while you are eligible for the LIA Amount, the available LIA Amount is equal to double the Annual Income Amount.

**LIA Amount After the first Lifetime Withdrawal.** If you become eligible for the LIA Amount after you have taken your first Lifetime Withdrawal, the available LIA Amount for the current and subsequent Annuity Years is equal to double the then current Annual Income Amount. However, the available LIA Amount in the current Annuity Year is reduced by any Lifetime Withdrawals that have been taken in the current Annuity Year. Cumulative Lifetime Withdrawals in an Annuity Year which are less than or equal to the LIA Amount (when eligible for the LIA Amount) will not reduce your LIA Amount in subsequent Annuity Years, but any such withdrawals will reduce the LIA Amount on a dollar-for-dollar basis in that Annuity Year.

For new issuances of this benefit, we may institute a "cut-off" date that would stop the appreciation of the Protected Withdrawal Value, even if no Lifetime Withdrawal had been taken prior to the cut-off date (thus affecting the determination of the LIA Amount). We will not apply any cut-off date to those who elected this benefit prior to our institution of a cut-off date.

**Withdrawals in Excess of the LIA Amount.** Withdrawals (other than the Non-Lifetime Withdrawal) of any amount in a given Annuity Year up to the LIA Amount will reduce the Protected Withdrawal Value by the amount of the withdrawal. However, if your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the LIA Amount ("Excess Income"), your LIA Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions) by the result of the ratio of the excess portion of the withdrawal to the Account Value immediately prior to the Excess Income. Excess Income also will reduce the Protected Withdrawal Value by the same ratio as the reduction to the LIA Amount. Any withdrawals that are less than or equal to the LIA Amount (when eligible) but in excess of the Free Withdrawal amount available under this Annuity will not incur a CDSC.

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal has exceeded the LIA Amount.

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of more than the LIA Amount, you cannot
 request an amount that would result in cumulative withdrawals in that Annuity Year exceeding the LIA Amount.

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of more than the LIA Amount, the amount you request plus the amount of any applicable CDSC and/or tax withholding
 cannot cause cumulative withdrawals in that Annuity Year to exceed the LIA Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of more than the LIA Amount than if you request a gross withdrawal.

No CDSC is applicable to any Lifetime Withdrawal that is less than or equal to the LIA Amount, even if the total amount of such withdrawals in any Annuity Year exceeds any maximum Free Withdrawal amount described in the Annuity. Such Lifetime Withdrawals are not treated as withdrawals of Purchase Payments. Each withdrawal that is Excess Income is subject to any applicable CDSC if the withdrawal is greater than the Free Withdrawal amount under the Annuity.

**Withdrawals are not required.** However, subsequent to the first Lifetime Withdrawal, the LIA Amount is not increased in subsequent Annuity Years if you decide not to take a withdrawal in an Annuity Year or take withdrawals in an Annuity Year that in total are less than the LIA Amount.

**Purchase Payments.** If you are eligible for the LIA Amount as described under "Eligibility Requirements for LIA Amount" and you make an additional Purchase Payment that we accept, the Annual Income Amount is increased by an amount obtained by applying the applicable percentage (3% for ages 50-54; 4% for ages 55 to 64; 5% for ages 65-84; and 6% for ages 85 or older) to the Purchase Payment (including any associated Purchase Credits). The applicable percentage is based on the attained age of the designated life on the date of the first Lifetime Withdrawal after the benefit effective date. The LIA Amount is increased by double the Annual Income Amount, if eligibility for LIA has been met. The Protected Withdrawal Value is increased by the amount of each Purchase Payment (including any associated Purchase Credits).

If the Annuity permits additional Purchase Payments, we will monitor additional Purchase Payments and may limit or refuse all or any portion of any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount (or, if eligible for LIA, the LIA Amount) is being increased in an unintended fashion. Among the factors we will use in making a

------

[Back to **Table of Contents**](#TOC_956)

determination as to whether an action is designed to increase the Annual Income Amount (or, if eligible for LIA, the LIA Amount) in an unintended fashion is the relative size and timing of additional Purchase Payment(s). Currently, our administrative practice is to monitor each contract and, beginning in the second benefit year, cumulative additional Purchase Payments within any benefit year will be limited to the Unadjusted Account Value at benefit election plus any additional Purchase Payments (including any associated Purchase Credits) made within that first benefit year. Subject to state law, we also reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner.

**Step Ups.** If your Annual Income Amount is stepped up, your LIA Amount will be stepped up to equal double the stepped up Annual Income Amount.

**Guarantee Payments.** If your Unadjusted Account Value is reduced to zero as a result of cumulative withdrawals that are equal to or less than the LIA Amount when you are eligible, and there is still a LIA Amount available, we will make an additional payment for that Annuity Year equal to the remaining LIA Amount. If this were to occur, you are not permitted to make additional Purchase Payments to your Annuity. Thus, in that scenario, the remaining LIA Amount would be payable even though your Unadjusted Account Value was reduced to zero. In subsequent Annuity Years we make payments that equal the LIA Amount as described in this section. We will make payments until the death of the single designated life. Should the designated life no longer qualify for the LIA Amount (as described under "Eligibility Requirements for LIA Amount" above), the Annual Income Amount would continue to be available. Subsequent eligibility for the LIA Amount would require the completion of the 120 day elimination period as well as meeting the LIA conditions listed above under "Eligibility Requirements for LIA Amount". **To the extent that cumulative withdrawals in the current Annuity Year that reduce** **your Unadjusted Account Value to zero are more than the LIA Amount (except in the case of Required Minimum Distributions), Highest Daily** **Lifetime Income 2.0 with LIA terminates, and no additional payments are made. However, if a withdrawal in the latter scenario was taken to** **satisfy a Required Minimum Distribution (as described above) under the Annuity, then the benefit will not terminate, and we will continue to** **pay the LIA Amount in subsequent Annuity Years until the death of the designated life.**

**Annuity Options.** In addition to the Highest Daily Lifetime Income 2.0 annuity options described above, after the tenth anniversary of the benefit effective date ("Tenth Anniversary"), you may also request that we make annuity payments each year equal to the Annual Income Amount. In any year that you are eligible for the LIA Amount, we make annuity payments equal to the LIA Amount. If you would receive a greater payment by applying your Unadjusted Account Value to receive payments for life under your Annuity, we will pay the greater amount. Annuitization prior to the Tenth Anniversary will forfeit any present or future LIA Amounts. We will continue to make payments until the death of the designated life. If this option is elected, the Annual Income Amount and LIA Amount will not increase after annuity payments have begun.

If you elect Highest Daily Lifetime Income 2.0 with LIA, and never meet the eligibility requirements, you will not receive any additional payments based on the LIA Amount.

**Please note that if you elect Highest Daily Lifetime Income 2.0 with LIA, your Account Value is not guaranteed, can fluctuate and may lose** **value.**

**Termination of Highest Daily Lifetime Income 2.0 with LIA. The LIA benefit terminates upon the first to occur of the following:**

**(I)** **your termination of the benefit;** 

**(II)** **your surrender of the Annuity;** 

**(III)** **our receipt of Due Proof of Death of the designated life;** 

**(IV)** **the Annuity Date, if unadjusted Account Value remains on the Annuity Date and an election is made to commence** **annuity payments prior to the tenth annuity anniversary;** 

**(V)** **the Valuation Day on which each of the unadjusted Account Value and the Annual Income Amount is zero; or** 

**(VI)** **if you cease to meet our requirements for elections of this benefit or if we process a requested change that is not** **consistent with our allowed Owner, Annuitant or Beneficiary designations.** **\*** 

\* Prior to terminating the benefit, we will send you written notice and provide you with an opportunity to change your designations.

Highest Daily Lifetime Income 2.0 with LIA uses the same predetermined mathematical formula used with Highest Daily Lifetime Income 2.0 and Spousal Highest Daily Lifetime Income 2.0. See the pertinent discussion in Highest Daily Lifetime Income 2.0 above.

**SPOUSAL HIGHEST DAILY LIFETIME INCOME 2.0 BENEFIT** 

Spousal Highest Daily Lifetime Income 2.0 is a lifetime guaranteed minimum withdrawal benefit, under which, subject to the terms of the benefit, we guarantee your ability to take a certain annual withdrawal amount for the lives of two individuals who are spouses. We reserve the right, in our sole discretion, to cease offering this benefit for new elections at any time.

We offer a benefit that guarantees, until the later death of two natural persons who are each other's spouses at the time of election of the benefit (the "designated lives", and each, a "designated life"), the ability to withdraw an annual amount (the "Annual Income Amount") equal to a E-15 percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Unadjusted Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the lives of the designated lives, provided you have not made withdrawals of Excess Income that result in your Unadjusted Account Value being reduced to zero. We also permit you to designate the first withdrawal from your Annuity as a one-time "Non-Lifetime Withdrawal." You may wish to take a Non-Lifetime Withdrawal if you have an immediate need for access to your Account Value but do not wish to begin lifetime payments under the optional living benefit. All other withdrawals from your Annuity are considered a "Lifetime Withdrawal" under the benefit. Withdrawals are taken first from your own Account

------

[Back to **Table of Contents**](#TOC_956)

Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Unadjusted Account Value is reduced to zero (for any reason other than due to partial withdrawals of Excess Income). The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue Spousal Highest Daily Lifetime Income 2.0 after the death of the first spouse. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. An integral component of Spousal Highest Daily Lifetime Income 2.0 is the predetermined mathematical formula we employ that may periodically transfer your Unadjusted Account Value to and from the AST Investment Grade Bond Portfolio. See the section above entitled "How Highest Daily Lifetime Income 2.0 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio."

Spousal Highest Daily Lifetime Income 2.0 is the spousal version of Highest Daily Lifetime Income 2.0. If you elected Spousal Highest Daily Lifetime Income 2.0 and subsequently terminate the benefit, you will not be able to re-elect it. Please note that if you terminate Spousal Highest Daily Lifetime Income 2.0, you lose the guarantees that you had accumulated under your existing benefit. See "[<u>Termination of Existing Benefits and Election of New</u> <u>Benefits</u>](#achapter_11-sect1_2_956)" for details.

Spousal Highest Daily Lifetime Income 2.0 must be elected based on two designated lives, as described below. Each designated life must be at least 50 years old on the benefit effective date. We will not divide an Annuity or the Spousal Highest Daily Lifetime Income v2.0 benefit due to a divorce. See "Election of and Designations under the Benefit" below for details. Spousal Highest Daily Lifetime Income v2.0 is not available if you elect any other optional living benefit.

As long as your Spousal Highest Daily Lifetime Income 2.0 is in effect, you must allocate your Unadjusted Account Value in accordance with the Permitted Variable Options and other Investment Option(s) available with this benefit. **For a more detailed description of the permitted Investment** **Options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956)**.**

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Unadjusted Account Value falls to zero,** **if any withdrawal is a withdrawal of Excess Income (as described below) and brings your Unadjusted Account Value to zero, your Annual** **Income Amount also would fall to zero, and the benefit and the Annuity then would terminate. In that scenario, no further amount would be** **payable under Spousal Highest Daily Lifetime Income 2.0. As to the impact of such a scenario on any other optional benefit you may have,** **please see the applicable section in this prospectus.**

You may also participate in the 6 or 12 Month Dollar Cost Averaging Program if you elect Spousal Highest Daily Lifetime Income, subject to the 6 or 12 Month DCA Program's rules. See the section of this prospectus entitled "[<u>Transfer and Rebalancing Programs - 6 or 12 Month Dollar Cost Averaging</u> <u>Program</u>](#chapter_9-sect1_3_956)" for details. No Long-Term Market Value Adjustment Option is permitted if you elect any optional benefit.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is only used to calculate the initial Annual Income Amount and the benefit fee. The Protected Withdrawal Value is separate from your Unadjusted Account Value and not available as cash or a lump sum withdrawal. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Unadjusted Account Value. On each Valuation Day thereafter until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraph. The "Periodic Value" is initially equal to the Unadjusted Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. The Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 5% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment (including any associated Purchase Credits) made on the Current Valuation Day; and

2. the
 Unadjusted Account Value on the current Valuation Day.

If you have not made a Lifetime Withdrawal on or before the 12<sup>th</sup> benefit anniversary, your Periodic Value on the 12<sup>th</sup> benefit anniversary equal to the greater of:

1. the
 Periodic Value described above or,

2. the
 sum of (a), (b) and (c) proportionally reduced for any Non-Lifetime Withdrawal:

(a) 200% of the Unadjusted Account Value on the effective date of the benefit including any Purchase Payments (including any associated Purchase Credits) made on that day;

(b) 200% of all Purchase Payments (including any associated Purchase Credits) made within one year following the effective date of the benefit; and

(c) all Purchase Payments (including any associated Purchase Credits) made after one year following the effective date of the benefit.

------

[Back to **Table of Contents**](#TOC_956)

This means that if you do not take a Lifetime Withdrawal on or before the 12<sup>th</sup> benefit anniversary, your Protected Withdrawal Value on the 12<sup>th</sup> benefit anniversary will be at least double (200%) your initial Protected Withdrawal Value established on the date of benefit election. If you begin taking Lifetime Withdrawals prior to your 12<sup>th</sup> benefit anniversary, however, these automatic increases will not occur. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Unadjusted Account Value upon any step-up, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals (see the examples that begin immediately prior to the sub-heading below entitled "Example of dollar-for-dollar reductions").

**Please note that if you elect Spousal Highest Daily Lifetime Income 2.0, your Account Value is not guaranteed, can fluctuate and may lose** **value.**

**Key Feature – Annual Income Amount under Spousal Highest Daily Lifetime Income 2.0**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the younger designated life on the date of the first Lifetime Withdrawal after election of the benefit. The percentages are: 2.5% for ages 50-54, 3.5% for ages 55 to 64; 4.5% for ages 65 to 84, and 5.5% for ages 85 and older. We use the age of the younger designated life even if that designated life is no longer a participant under the Annuity due to death or divorce. Under Spousal Highest Daily Lifetime Income 2.0, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year and also will reduce the Protected Withdrawal Value on a dollar-for-dollar basis. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount for any Annuity Year ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Unadjusted Account Value immediately prior to such withdrawal (see examples of this calculation below). Excess Income also will reduce the Protected Withdrawal Value by the same ratio.

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal is a withdrawal of Excess Income.

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of Excess Income, you cannot request
 an amount that would result in cumulative withdrawals in that Annuity Year exceeding your Annual Income Amount.

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of Excess Income, the amount you request plus the amount of any applicable CDSC and/or tax withholding cannot
 cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of Excess Income than if you request a gross withdrawal.

You may use the systematic withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit and must be taken as a gross withdrawal.

Any Purchase Payment that you make subsequent to the election of Spousal Highest Daily Lifetime Income 2.0 and subsequent to the first Lifetime Withdrawal will (i) immediately increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including any associated Purchase Credits) based on the age of the younger designated life at the time of the first Lifetime Withdrawal (the percentages are: 2.5% for ages 50-54, 3.5% for ages 55 to 64, 4.5% for ages 65 to 84, and 5.5% for ages 85 and older), and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including any associated Purchase Credits).

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of this benefit. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Unadjusted Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and

------

[Back to **Table of Contents**](#TOC_956)

withdrawals), we then multiply that value by a percentage that varies based on the age of the younger designated life on the Annuity Anniversary as of which the step-up would occur. The percentages are 2.5% for ages 50-54, 3.5% for ages 55 to 64, 4.5% for ages 65 to 84, and 5.5% for ages 85 and older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. We will not automatically increase your Annual Income Amount solely as a result of your attaining a new age that is associated with a new age-based percentage. The Unadjusted Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary by performing a similar examination of the Unadjusted Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Unadjusted Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Spousal Highest Daily Lifetime Income 2.0 has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Spousal Highest Daily Lifetime Income 2.0 upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject. Any such increased charge will not be greater than the maximum charge set forth in the table entitled "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)".

If you are enrolled in a systematic withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount. You must notify us in order to increase the withdrawal amount of any systematic withdrawal program.

Spousal Highest Daily Lifetime Income 2.0 does not affect your ability to take withdrawals under your Annuity, or limit your ability to take partial withdrawals that exceed the Annual Income Amount. Under Spousal Highest Daily Lifetime Income 2.0, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years. If your cumulative Lifetime Withdrawals in an Annuity Year exceed the Annual Income Amount, your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules).

Because both the Protected Withdrawal Value and Annual Income Amount are determined in a way that is not solely related to Unadjusted Account Value, it is possible for the Unadjusted Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions, and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Spousal Highest Daily Lifetime Income 2.0 or any other fees and charges under the Annuity. Assume the following for all three examples:

• The
 Issue Date is November 1, 2012

• Spousal
 Highest Daily Lifetime Income 2.0 is elected on August 1, 2013

• Both
 designated lives were 70 years old when they elected Spousal Highest Daily Lifetime Income 2.0

• The
 first withdrawal is a Lifetime Withdrawal

**Example of Dollar-for-Dollar Reductions**

On October 24, 2013, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $5,400 (since the younger designated life is between the ages of 65 and 84 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 4.5% of the Protected Withdrawal Value, in this case 4.5% of $120,000). Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including October 31, 2013) is $2,900. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($5,400 less $2,500 = $2,900).

**Example of Proportional Reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on October 29, 2013 and the Account Value at the time and immediately prior to this withdrawal is $118,000. The first $2,900 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0. The remaining withdrawal amount of $2,100 reduces the Annual Income Amount in future Annuity Years on a proportional basis based on the ratio of the Excess Income to the Account Value immediately prior to the Excess Income. (Note that if there were other withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount).

------

[Back to **Table of Contents**](#TOC_956)

**Here is the calculation:**

---

| | |
|:---|:---|
|  Account Value before Lifetime Withdrawal | $118000.00 |
|  Amount of "non" Excess Income | $2900.00 |
|  Account Value immediately before Excess Income of $2,100 | $115100.00 |
|  Excess Income amount | $2100.00 |
|  Ratio ($2,100/$115,100 = 1.82%) | 1.82% |
|  Annual Income Amount | $5400.00 |
|  1.82% Reduction in Annual Income Amount | $98.28 |
|  Annual Income Amount for future Annuity Years | $5301.72 |

---

**Example of Highest Daily Auto Step-up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Spousal Highest Daily Lifetime Income 2.0. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_8_956)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described earlier in this section will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with Spousal Highest Daily Lifetime Income 2.0. You must tell us at the time you take the partial withdrawal if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under Spousal Highest Daily Lifetime Income 2.0. If you do not designate the withdrawal as a Non-Lifetime Withdrawal, the first withdrawal you make will be the first

------

[Back to **Table of Contents**](#TOC_956)

Lifetime Withdrawal that establishes your Annual Income Amount, which is based on your Protected Withdrawal Value. Once you elect the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken. If you do not take a Non-Lifetime Withdrawal before beginning Lifetime Withdrawals, you lose the ability to take it.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value. It will also proportionally reduce the Periodic Value guarantee on the twelfth anniversary of the benefit effective date (see description in "Key Feature – Protected Withdrawal Value," above). It will reduce both by the percentage the total withdrawal amount (including any applicable CDSC) represents of the then current Account Value immediately prior to the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a systematic withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first withdrawal under the program will be considered a Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit. Assume the following:

• The
 Issue Date is December 3, 2012

• Spousal
 Highest Daily Lifetime Income 2.0 is elected on September 4, 2013

• The
 Unadjusted Account Value at benefit election was $105,000

• Each
 designated life was 70 years old when he/she elected Spousal Highest Daily Lifetime Income 2.0

• No
 previous withdrawals have been taken under Spousal Highest Daily Lifetime Income 2.0

On October 3, 2013, the Protected Withdrawal Value is $125,000, the 12<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000, and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on October 3, 2013 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with Spousal Highest Daily Lifetime Income 2.0 will be reduced by the ratio of the total withdrawal amount to the Account Value just prior to the withdrawal being taken.

**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal amount | $15000 |
|  Divided by Account Value before withdrawal | $120000 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375 |
|  12<sup>th</sup> benefit year Minimum Periodic Value | $183750 |

---

**Required Minimum Distributions**

See the sub-section entitled "[<u>Required Minimum Distributions</u>](#chapter_13-sect1_7_956)" in the prospectus section above concerning [<u>Highest Daily Lifetime Income</u>](#chapter_21-sect1_1_956) for a discussion of the relationship between the RMD amount and the Annual Income Amount.

**Benefits Under Spousal Highest Daily Lifetime Income 2.0**

• To
 the extent that your Unadjusted Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that
 are less than or equal to the Annual Income Amount, and amounts are still payable under Spousal Highest Daily Lifetime Income 2.0, we
 will make an additional payment, if any, for that Annuity Year equal to the remaining Annual Income Amount for the Annuity Year. Thus, in that scenario,
 the remaining Annual Income Amount would be payable even though your Unadjusted Account Value was reduced to zero.
 In subsequent Annuity Years we make payments that equal the Annual Income Amount as described in this section. We will make payments
 until the death of the first of the designated lives to die, and will continue to make payments until the death of the second designated
 life. After the Unadjusted Account Value is reduced to zero, you are not permitted to make additional Purchase Payments to your
 Annuity. T **o the extent that cumulative partial withdrawals in an Annuity Year exceed the Annual Income Amount ("Excess** **Income") and reduce your Unadjusted Account Value to zero, Spousal Highest Daily Lifetime Income 2.0 terminates, we will** **make no further payments of the Annual Income Amount and no additional Purchase Payments will be permitted. However, if a** **partial withdrawal in the latter scenario was taken to satisfy a Required Minimum Distribution (as described above) under the** **Annuity then the benefit will not terminate, and we will continue to pay the Annual Income Amount in subsequent Annuity Years** **until the death of the second designated life.** 

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• Please
 note that if your Unadjusted Account Value is reduced to zero, all payments in each Annuity Year subsequent to the Annuity Year your
 Account Value is reduced to zero will be treated as annuity payments. Also, any Death Benefit will terminate if withdrawals reduce your
 Unadjusted Account Value to zero. This means that any Death Benefit is terminated and no Death Benefit is payable if your Unadjusted
 Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal
 to, your Annual Income Amount.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

1. apply
 your Unadjusted Account Value, less any applicable state required premium tax, to any annuity option available; or

2. request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 We will make payments until the first of the designated lives to die, and will continue to make payments until the death of
 the second designated life. If, due to death of a designated life or divorce prior to Annuitization, only a single designated life remains,
 then annuity payments will be made as a life annuity for the lifetime of the designated life. We must receive your request
 in a form acceptable to us at our Service Center. If applying your Unadjusted Account Value, less any applicable tax charges,
 to our current life only (or joint life, depending on the number of designated lives remaining) annuity payment rates results
 in a higher annual payment, we will give you the higher annual payment.

• In
 the absence of an election when mandatory annuity payments are to begin, we currently make annual annuity payments as a joint and survivor
 or single (as applicable) life fixed annuity with eight payments certain, by applying the greater of the annuity rates then currently available or the
 annuity rates guaranteed in your Annuity. We reserve the right at any time to increase or decrease the certain period in order
 to comply with the Code (e.g., to shorten the period certain to match life expectancy under applicable IRS tables). The amount that will
 be applied to provide such annuity payments will be the greater of:

(I) the
 present value of the future Annual Income Amount payments (if no Lifetime Withdrawal was ever taken, we will calculate the
 Annual Income Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin). Such present
 value will be calculated using the greater of the joint and survivor or single (as applicable) life fixed annuity rates then currently
 available or the joint and survivor or single (as applicable) life fixed annuity rates guaranteed in your Annuity; and

(II) the
 Unadjusted Account Value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**Other Important Considerations**

• Withdrawals
 under the Spousal Highest Daily Lifetime Income 2.0 benefit are subject to all of the terms and conditions of the Annuity, including
 any applicable CDSC for the Non-Lifetime Withdrawal as well as partial withdrawals that exceed the Annual Income Amount. If you
 have an active systematic withdrawal program running at the time you elect this benefit, the first systematic withdrawal that processes after your election
 of the benefit will be deemed a Lifetime Withdrawal. Withdrawals made while Spousal Highest Daily Lifetime Income 2.0
 is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. Any withdrawals made under the benefit will
 be taken on a proportional basis from the Variable Options (including the AST Investment Grade Bond Portfolio) and the DCA
 Market Value Adjustment Options. If you have an active systematic withdrawal program running at the time you elect this benefit, the program
 must withdraw funds on a proportional basis

• Any
 Lifetime Withdrawal that does not cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount is not subject
 to a CDSC, even if the total amount of such withdrawals in any Annuity Year exceeds the maximum Free Withdrawal amount. For example,
 if your Free Withdrawal amount is $10,000 and your Annual Income Amount is $11,000, withdrawals of your entire Annual Income
 Amount in any Annuity Year would not trigger a CDSC. If you withdrew $12,000, however, $1,000 would be subject to a CDSC.

• You
 should carefully consider when to begin taking Lifetime Withdrawals. If you begin taking withdrawals early, you may maximize the time
 during which you may take Lifetime Withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals
 reduce your Unadjusted Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss
 with your financial professional when it may be appropriate for you to begin taking Lifetime Withdrawals.

• You
 cannot allocate Purchase Payments or transfer Unadjusted Account Value to or from the AST Investment Grade Bond Portfolio. **A** **summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) . In
 addition, you can find a copy of the AST
 Investment Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>.

• Transfers
 to and from the Permitted Variable Options, the DCA Market Value Adjustment Options, and the AST Investment Grade Bond Portfolio
 triggered by the predetermined mathematical formula will not count toward the maximum number of free transfers allowable under
 an Annuity.

• Upon
 election of the benefit, 100% of your Unadjusted Account Value must be allocated to the Permitted Variable Options. We may amend the
 Permitted Variable Options from time to time. Changes to Permitted Variable Options, or to the requirements as to how you may allocate
 your Unadjusted Account Value with this benefit, will apply to new elections of the benefit and may apply to current participants in the
 benefit. To the extent that changes apply to current participants in the benefit, they will apply only upon re-allocation of Unadjusted Account Value, or
 to any additional Purchase Payments that are made after the changes go into effect. That is, we will not require such current
 participants to reallocate Unadjusted Account Value to comply with any new requirements.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• If
 you elected this benefit, you may be required to reallocate to different Variable Options if you are currently invested in non-permitted Variable Options.
 On the Valuation Day we receive your request in Good Order, we will (i) sell Units of the non-permitted Variable Options and
 (ii) invest the proceeds of those sales in the Variable Options that you have designated. During this reallocation process, your Unadjusted
 Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected
 benefit will commence at the close of business on the following Valuation Day. Thus, the protection afforded by the newly-elected
 benefit will not begin until the close of business on the following Valuation Day.

• Any
 Death Benefit will terminate if withdrawals taken under Spousal Highest Daily Lifetime Income 2.0 reduce your Unadjusted Account Value
 to zero. This means that any Death Benefit is terminated and no Death Benefit is payable if your Unadjusted Account Value is reduced
 to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal to, your Annual Income Amount.
 (See " [<u>Triggers for Payment of the Death Benefit</u>](#chapter_11-sect1_9_956) "
 for more information.)

**Charge for the Spousal Highest Daily Lifetime Income v2.0** 

The maximum charge for Spousal Highest Daily Lifetime Income 2.0 is 2.00% annually of the greater of the Unadjusted Account Value and Protected Withdrawal Value. As discussed in "Highest Daily Auto Step-Up" above, we may increase the fee upon a step-up under this benefit. We deduct this charge on quarterly anniversaries of the benefit effective date, based on the values on the last Valuation Day prior to the quarterly anniversary. Thus, we deduct, on a quarterly basis, 0.50% of the greater of the prior Valuation Day's Unadjusted Account Value, or the prior Valuation Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options, including the AST Investment Grade Bond Portfolio. You will begin paying this charge as of the effective date of the benefit even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments. If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated Purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for Spousal Highest Daily Lifetime Income 2.0 would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, withdrawals may reduce the Unadjusted Account Value to zero. If the Unadjusted Account Value is reduced to zero as a result of a partial withdrawal that is not a withdrawal of Excess Income and the Annual Income Amount is greater than zero, we will make payments under the benefit.

**Election of and Designations under the Benefit**

Spousal Highest Daily Lifetime Income 2.0 can only be elected based on two designated lives. Designated lives must be natural persons who are each other's spouses at the time of election of the benefit. Currently, Spousal Highest Daily Lifetime Income 2.0 only may be elected if the Owner, Annuitant, and Beneficiary designations are as follows:

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the sole Beneficiary is the Owner's spouse. Each Owner/Annuitant
 and the Beneficiary must be at least 50 years old at the time of election; or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The Beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. Each Owner must be at least 50 years old at the time of election; or

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the Beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. Each of the Annuitant and the Contingent Annuitant must
 be at least 50 years old at the time of election.

We do not permit a change of Owner under this benefit, except as follows: (a) if one Owner dies and the surviving spousal Owner assumes the Annuity, or (b) if the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of Beneficiary designations under this benefit. However if the Beneficiary is changed, the benefit may not be eligible to be continued upon the death of the first designated life. If the designated lives divorce, Spousal Highest Daily Lifetime Income 2.0 may not be divided as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity appoint a new designated life upon re-marriage. Our current administrative procedure is to treat the division of an Annuity as a withdrawal from the existing Annuity. Any applicable CDSC will apply to such a withdrawal. The non-Owner spouse may then decide whether s/he wishes to use the withdrawn funds to purchase a new Annuity, subject to the rules that are current at the time of purchase.

Spousal Highest Daily Lifetime Income 2.0 can be elected at the time that you purchase your Annuity or after the Issue Date, subject to its availability, and our eligibility rules and restrictions. If you elect Spousal Highest Daily Lifetime Income 2.0 and terminate it, you cannot re-elect it. See "[<u>Termination of</u> <u>Existing Benefits and Election of New Benefits</u>](#achapter_11-sect1_2_956)" for information pertaining to elections, termination and re-election of benefits. **Please note that if you** **terminate a living benefit and elect Spousal Highest Daily Lifetime Income 2.0, you lose the guarantees that you had accumulated under your** 

------

[Back to **Table of Contents**](#TOC_956)

**existing benefit, and your guarantees under Spousal Highest Daily Lifetime Income 2.0 will be based on your Unadjusted Account Value on** **the effective date of Spousal Highest Daily Lifetime Income 2.0.** You and your financial professional should carefully consider whether terminating your existing benefit is appropriate for you. There is no guarantee that any benefit will be available for election at a later date.

If you wish to elect this benefit and you are currently participating in a systematic withdrawal program, amounts withdrawn under the program must be taken on a proportional basis from your Annuity's Variable Options (i.e., in direct proportion to the proportion that each such Variable Option bears to your total Account Value) in order for you to be eligible for the benefit. Thus, you may not elect Spousal Highest Daily Lifetime Income 2.0 so long as you participate in a systematic withdrawal program in which withdrawals are not taken on a proportional basis.

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and you cannot re-elect the benefit.

**The benefit automatically terminates upon the first to occur of the following:** 

**(I)** **upon our receipt of Due Proof of Death of the first designated life, if the surviving spouse opts to take the death** **benefit under the Annuity (rather than continue the Annuity) or if the surviving spouse is not an eligible designated** **life;** 

**(II)** **upon the death of the second designated life;** 

**(III)** **your termination of the benefit;** 

**(IV)** **your surrender of the Annuity;** 

**(V)** **the Latest Annuity Date or your election to begin receiving annuity payments (although if you have elected to take** **annuity payments in the form of the Annual Income Amount, we will continue to pay the Annual Income Amount);** 

**(VI)** **both the Unadjusted Account Value and Annual Income Amount equal zero; or** 

**(VII)** **you cease to meet our requirements as described in "Election of and Designations under the Benefit" above or if we** **process a requested change that is not consistent with our allowed Owner, Annuitant or Beneficiary designations.** **\*** 

\* Prior to terminating the benefit, we will send you written notice and provide you with an opportunity to change your designations.

"Due Proof of Death" is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claim forms from at least one Beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary.

Upon termination of Spousal Highest Daily Lifetime Income 2.0 other than upon the death of the second Designated Life or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. This final charge will be deducted even if it results in the Unadjusted Account Value falling below the Account Value Floor. However, if the amount in the Variable Options is not enough to pay the charge, we will reduce the fee to no more than the amount in the Variable Options. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options, and (ii) unless you are participating in an asset allocation program (i.e., Automatic Rebalancing Program, or 6 or 12 Month DCA Program for which we are providing administrative support), transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If, prior to the transfer from the AST Investment Grade Bond Portfolio, the Unadjusted Account Value in the Variable Options is zero, we will transfer such amounts to the AST Government Money Market Variable Option.

How Spousal Highest Daily Lifetime Income 2.0 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio

**See "How Highest Daily Lifetime Income 2.0 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST** **Investment Grade Bond Portfolio" in the discussion of Highest Daily Lifetime Income 2.0 above for information regarding this component of** **the benefit.**

**Additional Tax Considerations**

Please see the Additional Tax Considerations section under Highest Daily Lifetime Income 2.0 above.

**HIGHEST DAILY LIFETIME INCOME 2.0 WITH HIGHEST DAILY DEATH BENEFIT**

Highest Daily Lifetime Income 2.0 with Highest Daily Death Benefit ("HD DB") is a lifetime guaranteed minimum withdrawal benefit, under which, subject to the terms of the benefit, we guarantee your ability to take a certain annual withdrawal amount for life. This benefit also provides for a highest daily death benefit, subject to the terms of the benefit. This version is only being offered in those jurisdictions where we have received regulatory approval and will be offered subsequently in other jurisdictions when we receive regulatory approval in those jurisdictions. We reserve the right, in our sole discretion, to cease offering this benefit for new elections, at any time.

------

[Back to **Table of Contents**](#TOC_956)

We offer a benefit that guarantees until the death of the single designated life (the Annuitant) the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Unadjusted Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the rest of your life provided that you do not take withdrawals of Excess Income that result in your Unadjusted Account Value being reduced to zero. We also permit you to designate the first withdrawal from your Annuity as a one-time "Non-Lifetime Withdrawal". You may wish to take a Non-Lifetime Withdrawal if you have an immediate need for access to your Account Value but do not wish to begin lifetime payments under the optional living benefit. All other partial withdrawals from your Annuity are considered a "Lifetime Withdrawal" under the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Unadjusted Account Value is reduced to zero (for any reason other than due to partial withdrawals of Excess Income) ("Guarantee Payments"). Highest Daily Lifetime Income 2.0 with HD DB may be appropriate if you intend to make periodic withdrawals from your Annuity, and wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and also wish to provide a death benefit to your Beneficiaries. You are not required to take withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit. An integral component of Highest Daily Lifetime Income 2.0 with HD DB is the predetermined mathematical formula we employ that may periodically transfer your Unadjusted Account Value to and from the AST Investment Grade Bond Portfolio. See the section above entitled "How Highest Daily Lifetime Income 2.0 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio."

Highest Daily Lifetime Income 2.0 is offered with or without the HD DB component; however, you may only elect HD DB with Highest Daily Lifetime Income 2.0, and you must elect the HD DB benefit at the time you elect Highest Daily Lifetime Income 2.0. Please note that if you terminate Highest Daily Lifetime Income 2.0 and elect Highest Daily Lifetime Income 2.0 with HD DB you lose the guarantees that you had accumulated under your existing benefit and will begin the new guarantees under the new benefit you elect based on your Unadjusted Account Value as of the date the new benefit becomes active. Highest Daily Lifetime Income 2.0 with HD DB is offered as an alternative to other lifetime withdrawal options. If you elect this benefit, it may not be combined with any other optional living or death benefit.

The income benefit under Highest Daily Lifetime Income 2.0 with HD DB currently is based on a single "designated life" who is between the ages of 50 and 79 on the benefit effective date. As long as your Highest Daily Lifetime Income 2.0 with HD DB is in effect, you must allocate your Unadjusted Account Value in accordance with the Permitted Variable Options and other Investment Option(s) available with this benefit. **For a more detailed** **description of the permitted Investment Options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956)**.**

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Unadjusted Account Value falls to zero,** **if any withdrawal is a withdrawal of Excess Income (as described below) and brings your Unadjusted Account Value to zero, your Annual** **Income Amount also would fall to zero, and the benefit and the Annuity then would terminate. In that scenario, no further amount would be** **payable under Highest Daily Lifetime Income 2.0 with HD DB (including no payment of the Highest Daily Death Benefit Amount).**

You may also participate in the 6 or 12 Month DCA Program if you elect Highest Daily Lifetime Income 2.0 with HD DB, subject to the 6 or 12 Month DCA Program's rules. See the section of this prospectus entitled "[<u>Transfer and Rebalancing Programs - 6 or 12 Month Dollar Cost Averaging Program</u>](#chapter_9-sect1_3_956)" for details. No Long-Term Market Value Adjustment Option is permitted if you elect any optional benefit.

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is only used to calculate the initial Annual Income Amount and the benefit fee. The Protected Withdrawal Value is separate from your Unadjusted Account Value and not available as cash or a lump sum withdrawal. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Unadjusted Account Value. On each Valuation Day thereafter, until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraphs.

The "Periodic Value" is initially equal to the Unadjusted Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. The Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 5% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment (including any associated Purchase Credits) made on the Current Valuation Day; and

2. the
 Unadjusted Account Value on the current Valuation Day.

If you have not made a Lifetime Withdrawal on or before the 12<sup>th</sup> benefit anniversary, your Periodic Value on the 12<sup>th</sup> benefit anniversary is equal to the greater of:

1. the
 Periodic Value described above, or

2. the
 sum of (a), (b) and (c) below proportionally reduced for any Non-Lifetime Withdrawals:

(a) 200% of the Unadjusted Account Value on the effective date of the benefit including any Purchase Payments (including any associated Purchase Credits) made on that day;

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(b) 200% of all Purchase Payments (including any associated Purchase Credits) made within one year following the effective date of the benefit; and

(c) all Purchase Payments (including any associated Purchase Credits) made after one year following the effective date of the benefit.

This means that if you do not take a withdrawal on or before the 12<sup>th</sup> benefit anniversary, your Protected Withdrawal Value on the 12<sup>th</sup> benefit anniversary will be at least double (200%) your initial Protected Withdrawal Value established on the date of benefit election. If you begin taking Lifetime Withdrawals prior to your 12<sup>th</sup> benefit anniversary, however, these automatic increases will not occur. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Unadjusted Account Value upon any step-up, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals (see the examples that begin immediately prior to the sub-heading below entitled "Example of dollar-for-dollar reductions").

**Please note that if you elect Highest Daily Lifetime Income 2.0 with HD DB, your Account Value is not guaranteed, can fluctuate and may** **lose value.**

**Key Feature – Annual Income Amount under Highest Daily Lifetime Income 2.0 with HD DB.** 

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years unless you take a withdrawal of Excess Income, as described below. The percentage initially depends on the age of the Annuitant on the date of the first Lifetime Withdrawal. The percentages are: 3% for ages 50-54; 4% for ages 55 to 64; 5% for ages 65 to 84, and 6% for ages 85 or older. Under Highest Daily Lifetime Income 2.0 with HD DB, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year and also will reduce the Protected Withdrawal Value on a dollar-for-dollar basis. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Account Value immediately prior to such withdrawal (see examples of this calculation below). Excess Income also will reduce the Protected Withdrawal Value by the same ratio.

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal is a withdrawal of Excess Income.

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of Excess Income, you cannot request
 an amount that would result in cumulative withdrawals in that Annuity Year exceeding your Annual Income Amount.

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of Excess Income, the amount you request plus the amount of any applicable CDSC and/or tax withholding cannot
 cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of Excess Income than if you request a gross withdrawal.

You may use the systematic withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit and must be taken as a gross withdrawal.

Any Purchase Payment that you make subsequent to the election of Highest Daily Lifetime Income 2.0 with HD DB and subsequent to the first Lifetime Withdrawal will (i) immediately increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including any associated Purchase Credits) based on the age of the Annuitant at the time of the first Lifetime Withdrawal (the percentages are: 3% for ages 50-54 ; 4% for ages 55 to 64; 5% for ages 65 to 84, and 6% for ages 85 or older) and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including any associated Purchase Credits).

After your first Lifetime Withdrawal and before your Unadjusted Account Value is reduced to zero, you may make additional Purchase Payments, subject to the limits in the next paragraph. We reserve the right not to accept additional Purchase Payments if the Unadjusted Account Value becomes zero.

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner.

------

[Back to **Table of Contents**](#TOC_956)

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of Highest Daily Lifetime Income 2.0 with HD DB. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Auto Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Unadjusted Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the Annuitant on the Annuity Anniversary as of which the step-up would occur. The percentages are: 3% for ages 50-54; 4% for ages 55 to 64; 5% for ages 65-84, and 6% for ages 85 or older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. We will not automatically increase your Annual Income Amount solely as a result of your attaining a new age that is associated with a new age-based percentage. The Unadjusted Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. All daily valuations and annual step-ups will only occur on a Valuation Day. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step- up should occur on each Annuity Anniversary, by performing a similar examination of the Unadjusted Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Unadjusted Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto Step-Up to your Annual Income Amount, the charge for Highest Daily Lifetime Income 2.0 with HD DB has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Highest Daily Lifetime Income 2.0 with HD DB upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should consult with your financial professional and carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject. Any such increased charge will not be greater than the maximum charge set forth in the table entitled "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)."

If you are enrolled in a systematic withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount. You must notify us in order to increase the withdrawal amount of any systematic withdrawal program.

Highest Daily Lifetime Income 2.0 with HD DB does not affect your ability to take partial withdrawals under your Annuity, or limit your ability to take partial withdrawals that exceed the Annual Income Amount. Under Highest Daily Lifetime Income 2.0 with HD DB, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If your cumulative Lifetime Withdrawals in any Annuity Year are less than the Annual Income Amount, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years. If your cumulative Lifetime Withdrawals in an Annuity Year exceed the Annual Income Amount, your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules).

Because each of the Protected Withdrawal Value and Annual Income Amount is determined in a way that is not solely related to Unadjusted Account Value, it is possible for the Unadjusted Account Value to fall to zero, even though the Annual Income Amount remains.

Examples of dollar-for-dollar and proportional reductions and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime Income 2.0 with HD DB or any other fees and charges under the Annuity. Assume the following for all three examples:

• The
 Issue Date is November 1, 2012

• Highest
 Daily Lifetime Income 2.0 with HD DB is elected on August 1, 2013

• The
 Annuitant was 70 years old when he/she elected Highest Daily Lifetime Income 2.0 with HD DB

• The
 first withdrawal is a Lifetime Withdrawal

**Example of Dollar-for-Dollar Reductions**

On October 24, 2013, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $6,000 (since the designated life is between the ages of 65 and 84 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 5% of the Protected Withdrawal Value, in this case 5% of $120,000). The Highest Daily Death Benefit Amount is $115,420. Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including October 31, 2013) is $3,500. This is the result of a dollar-for-dollar reduction of the Annual Income Amount ($6,000 less $2,500 = $3,500) and the Highest Daily Death Benefit Amount ($115,420 less $2,500 = $112,920).

**Example of Proportional Reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on October 29, 2013 the Account Value at the time and immediately prior to this withdrawal is $118,000, and the Highest Daily Death Benefit Amount is $112,920. The first $3,500 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0, and reduces the Highest Daily Death Benefit Amount on a dollar-for dollar basis to $109,420. The remaining withdrawal amount of $1,500 reduces the Annual Income Amount in future Annuity Years and the Highest Daily Death Benefit Amount on a proportional

------

[Back to **Table of Contents**](#TOC_956)

basis based on the ratio of the Excess Income to the Account Value immediately prior to the Excess Income. (Note that if there are other future withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount and the Highest Daily Death Benefit Amount).

**Here is the calculation:**

---

| | | | |
|:---|:---|:---|:---|
|  *Annual Income Amount* |  | *Highest Daily Death Benefit Amount* |  |
|  Account Value before Lifetime Withdrawal | $118000.00 | Account Value before Lifetime Withdrawal | $118000.00 |
|  Amount of "non" Excess Income | $3500.00 | Amount of "non" Excess Income | $3500.00 |
|  Account Value immediately before Excess Income of $1,500 | $114500.00 | Account Value immediately before Excess Income of $1,500 | $114500.00 |
|  Excess Income amount | $1500.00 | Excess Income amount | $1500.00 |
|  Ratio ($1,500/$114,500 = 1.31%) | 1.31% | Ratio ($1,500/$114,500 = 1.31%) | 1.31% |
|  Annual Income Amount | $6000.00 | HD DB Amount | $109420.00 |
|  1.31% Reduction in Annual Income Amount | $78.60 | 1.31% Reduction in Annual Income Amount | $1433.40 |
|  Annual Income Amount for future Annuity Years | $5921.40 | Highest Daily Death Benefit Amount | $107986.60 |

---

**Example of Highest Daily Auto Step-up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

------

[Back to **Table of Contents**](#TOC_956)

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Highest Daily Lifetime Income 2.0 with HD DB. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_8_956)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described earlier in this section will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with Highest Daily Lifetime Income 2.0 with HD DB. You must tell us at the time you take the withdrawal if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under Highest Daily Lifetime Income 2.0 with HD DB. If you do not designate the withdrawal as a Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Annual Income Amount, which is based on your Protected Withdrawal Value. Once you elect to take the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime Withdrawals may be taken. If you do not take a Non-Lifetime Withdrawal before beginning Lifetime Withdrawals, you lose the ability to take it.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value. It will also proportionally reduce the Periodic Value guarantee on the twelfth anniversary of the benefit effective date (see description in "Key Feature – Protected Withdrawal Value," above) and the Highest Daily Death Benefit Amount. It will reduce each value by the percentage the total withdrawal amount (including any applicable CDSC) represents of the then current Account Value immediately prior to the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a systematic withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first withdrawal under the program will be considered a Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit.

Assume the following:

• The
 Issue Date is December 3

• Highest
 Daily Lifetime Income 2.0 with HD DB is elected on September 4

• The
 Unadjusted Account Value at benefit election was $105,000

• The
 Annuitant was 70 years old when he/she elected Highest Daily Lifetime Income 2.0 with HD DB

No previous withdrawals have been taken under Highest Daily Lifetime Income 2.0 with HD DB

On October 3 the Protected Withdrawal Value is $125,000, the 12<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000, the Highest Daily Death Benefit Amount is $115,420, and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on October 3 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with Highest Daily Lifetime Income 2.0 with HD DB will be reduced by the ratio of the total withdrawal amount to the Account Value just prior to the withdrawal being taken.

**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal amount | $15000.00 |
|  Divided by Account Value before withdrawal | $120000.00 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375.00 |
|  12<sup>th</sup> benefit year Minimum Periodic Value | $183750.00 |
|  Highest Daily Death Benefit Amount | $100992.50 |

---

**Required Minimum Distributions**

Required Minimum Distributions ("RMD") for this Annuity must be taken by April 1<sup>st</sup> in the year following the date you turn the applicable age and by December 31<sup>st</sup> for subsequent calendar years. For a Tax Sheltered Annuity or a 401(a) plan for which the participant is not a greater than five (5) percent Owner of the employer, this required beginning date can generally be deferred to retirement, if later. Roth IRAs are not subject to these rules during the Owner's lifetime. See "[<u>Taxes</u>](#chapter_14-sect1_1_956)" for more information about the applicable age and further discussions of RMDs.

------

[Back to **Table of Contents**](#TOC_956)

If the annual RMD amount is greater than the Annual Income Amount, a withdrawal of the RMD amount will not be treated as a withdrawal of Excess Income, as long as the RMD amount is calculated by us for this Annuity and administered under a program we support each calendar year. If you are not participating in an RMD withdrawal program each calendar year, you can alternatively satisfy the RMD amount without it being treated as a withdrawal of Excess Income as long as the below rules are applied.

A "Calendar Year" runs from January 1 to December 31 of that year.

Withdrawals made from the Annuity during an Annuity Year to meet the RMD provisions of the Code will not be treated as withdrawals of Excess Income if they are taken during one Calendar Year

If Lifetime Withdrawals are taken over two Calendar Years, the amount that will not be treated as a withdrawal of Excess Income is:

• the
 remaining Annual Income Amount for that Annuity Year; plus

• the
 second Calendar Year's RMD amount minus the Annual Income Amount (the result of which cannot be less than zero).

**Example**

The following example is purely hypothetical and intended to illustrate the scenario described above. Note that withdrawals must comply with all IRS guidelines in order to satisfy the RMD for the current calendar year.

---

| | | |
|:---|:---|:---|
|  **First Calendar Year** | **Annuity Year** | **Second Calendar Year** |
|  01/01/2021 to 12/31/2021 | 06/01/2021 to 05/31/2022 | 01/01/2022 to 12/31/2022 |

---

Assume the following:

• RMD
 Amount for Both Calendar Years = $6,000;

• Annual
 Income Amount = $5,000; and

• A
 withdrawal of $2,000 was taken on 07/01/2021 (during the First Calendar Year) resulting in a remaining Annual Income Amount for the Annuity
 Year of $3,000.

The amount that can be taken between 01/03/2022 and 05/31/2022 without creating a withdrawal of Excess Income is $4,000. Here is the calculation:

• The
 remaining Annual Income for that Annuity Year ($3,000); plus

• The
 Second Calendar Year's RMD Amount minus the Annual Income Amount ($6,000 - $5,000 = $1,000).

If the $4,000 is withdrawn during the Annuity Year, the remaining Annual Income Amount will be $0 and the remaining RMD amount for the Second Calendar Year ($2,000) may be taken in the next Annuity Year beginning on 06/01/2022.

Other Important Information

• If,
 in any Annuity Year, your RMD amount is less than your Annual Income Amount, any withdrawals in excess of the Annual Income Amount
 will be treated as Excess Income.

• If
 you do not comply with the rules described above, any withdrawal that exceeds the Annual Income Amount will be treated as a withdrawal
 of Excess Income, which will reduce your Annual Income Amount in future Annuity Years. This may include a situation where you
 comply with the rules described above and then decide to take additional withdrawals after satisfying your RMD from the Annuity.

• If
 you take a partial withdrawal to satisfy RMD and designate that withdrawal as a Non-Lifetime Withdrawal, please note that all Non-Lifetime
 Withdrawal provisions will apply.

**Highest Daily Death Benefit**

A Death Benefit is payable under Highest Daily Lifetime Income 2.0 with HD DB (until we begin making Guarantee Payments under the benefit or annuity payments have begun) upon the death of the Owner (Annuitant if entity owned), also referred to as the "Single Designated Life", when we receive Due Proof of Death. The Death Benefit is the greatest of: the Minimum Death Benefit or the Highest Daily Death Benefit Amount described below.

Highest Daily Death Benefit Amount:

On the date you elect Highest Daily Lifetime Income 2.0 with HD DB, the Highest Daily Death Benefit Amount is equal to your Unadjusted Account Value. On each subsequent Valuation Day, until the date of death of the decedent, the Highest Daily Death Benefit Amount will be the greater of:

1. The
 Unadjusted Account Value on the current Valuation Day; and

2. The
 Highest Daily Death Benefit Amount of the immediately preceding Valuation Day,

○ increased
 by any Purchase Payments made on the current Valuation Day and,

○ reduced
 by the effect of withdrawals made on the current Valuation Day, as described below.

Please note that the Highest Daily Death Benefit Amount does not have any guaranteed growth rate associated with it and therefore can be a different amount than any of the guaranteed values associated with the living benefit features of Highest Daily Lifetime Income 2.0 with HD DB.

------

[Back to **Table of Contents**](#TOC_956)

A Non-Lifetime Withdrawal will proportionately reduce the Highest Daily Death Benefit Amount by the ratio of the Non-Lifetime Withdrawal to the Account Value immediately prior to the Non-Lifetime Withdrawal. A Lifetime Withdrawal that is not considered Excess Income will reduce the Highest Daily Death Benefit Amount (dollar-for-dollar) by the amount of the withdrawal. All or a portion of a Lifetime Withdrawal that is considered Excess Income will proportionately reduce the Highest Daily Death Benefit Amount by the ratio of the Excess Income to the Account Value immediately prior to the withdrawal of the Excess Income.

The Highest Daily Death Benefit will be calculated on the date of death of the decedent and will be:

• increased
 by the amount of any additional Adjusted Purchase Payments, and

• reduced
 by the effect of any withdrawals (as described in the preceding paragraph),

made during the period between the decedent's date of death and the date we receive Due Proof of Death.

We will reduce the Highest Daily Death Benefit Amount payable under this benefit by Purchase Credits applied during the period beginning 12 months prior to the decedent's date of death and ending on the date we receive Due Proof of Death. We may waive, on a non-discriminatory basis, our right to deduct such Purchase Credits.

Please note that the Highest Daily Death Benefit Amount is available only until we make Guarantee Payments under Highest Daily Lifetime Income 2.0 with HD DB or annuity payments begin. This means that any withdrawals that reduce your Unadjusted Account Value to zero will also reduce the Highest Daily Death Benefit Amount to zero.

All other provisions applicable to Death Benefits under your Annuity will continue to apply. See the "[<u>Benefits Available Under the Contract</u>](#chapter_11-sect1_1_956)" section of this prospectus for more information pertaining to Death Benefits.

**Benefits Under Highest Daily Lifetime Income 2.0 with HD DB**

• To
 the extent that your Unadjusted Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that
 are less than or equal to the Annual Income Amount, and Guarantee Payments amounts are still payable under Highest Daily Lifetime Income
 2.0 with HD DB, we will make an additional payment, if any, for that Annuity Year equal to the remaining Annual Income Amount for
 the Annuity Year. Thus, in that scenario, the remaining Annual Income Amount would be payable even though your Unadjusted Account
 Value was reduced to zero. In subsequent Annuity Years we make payments that equal the Annual Income Amount as described in
 this section. We will make payments until the death of the single designated life. After the Unadjusted Account Value is reduced to zero, you will not be permitted
 to make additional Purchase Payments to your Annuity. To the extent that cumulative partial withdrawals in an Annuity
 Year exceed the Annual Income Amount ("Excess Income") and reduce your Unadjusted Account Value to zero, Highest Daily Lifetime
 Income 2.0 with HD DB terminates, we will make no further payments of the Annual Income Amount and no additional Purchase Payments
 will be permitted.

• Please
 note that if your Unadjusted Account Value is reduced to zero, all subsequent payments will be treated as Guarantee Payments. Further,
 the Guarantee Payments in each Annuity Year subsequent to the Annuity Year your Account Value is reduced to zero will be treated
 as annuity payments.

• Please
 note that if your Unadjusted Account Value is reduced to zero due to withdrawals or Annuitization, any Death Benefit value, including
 the HD DB, will terminate. This means that the HD DB is terminated and no Death Benefit is payable if your Unadjusted Account Value
 is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal to, your Annual Income
 Amount.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

1. apply
 your Unadjusted Account Value, less any applicable tax charges, to any annuity option available; or

2. request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount. If this
 option is elected, the Annual Income Amount will not increase after annuity payments have begun. We will make payments until the death
 of the single designated life. We must receive your request in a form acceptable to us at our Service Center. If applying your Unadjusted
 Account Value, less any applicable tax charges, to the life-only annuity payment rates results in a higher annual payment, we will
 give you the higher annual payment.

• In
 the absence of an election when mandatory annuity payments are to begin we currently make annual annuity payments in the form of a single
 life fixed annuity with eight payments certain, by applying the greater of the annuity rates then currently available or the annuity rates
 guaranteed in your Annuity. We reserve the right at any time to increase or decrease the period certain in order to comply with the Code
 (e.g., to shorten the period certain to match life expectancy under applicable IRS tables). The amount that will be applied to provide such annuity payments
 will be the greater of:

1. the
 present value of the future Annual Income Amount payments (if no Lifetime Withdrawal was ever taken, we will calculate the Annual Income
 Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin). Such present value will be calculated
 using the greater of the single life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your Annuity; and

2. the
 Unadjusted Account Value.

------

[Back to **Table of Contents**](#TOC_956)

**Other Important Considerations**

• Withdrawals
 under Highest Daily Lifetime Income 2.0 with HD DB are subject to all of the terms and conditions of the Annuity, including any
 applicable CDSC for the Non-Lifetime Withdrawal as well as partial withdrawals that exceed the Annual Income Amount. If you have an
 active systematic withdrawal program running at the time you elect this benefit, the first systematic withdrawal that processes after your election of
 the benefit will be deemed a Lifetime Withdrawal. Withdrawals made while Highest Daily Lifetime Income 2.0 with HD DB is
 in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. Any withdrawals made under the benefit will be taken
 on a proportional basis from the Variable Options (including the AST Investment Grade Bond Portfolio) and the DCA Market
 Value Adjustment Options. If you have an active systematic withdrawal program running at the time you elect this benefit, the program
 must withdraw funds on a proportional basis.

• Any
 Lifetime Withdrawal that does not cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount is not subject
 to a CDSC, even if the total amount of such withdrawals in any Annuity Year exceeds the maximum Free Withdrawal amount. For example,
 if your Free Withdrawal amount is $10,000 and your Annual Income Amount is $11,000, withdrawals of your entire Annual Income
 Amount in any Annuity Year would not trigger a CDSC. If you withdrew $12,000, however, $1,000 would be subject to a CDSC.

• You
 should carefully consider when to begin taking Lifetime Withdrawals. If you begin taking withdrawals early, you may maximize the time
 during which you may take Lifetime Withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals
 reduce your Unadjusted Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss
 with your financial professional when it may be appropriate for you to begin taking Lifetime Withdrawals

• You
 cannot allocate Purchase Payments or transfer Unadjusted Account Value to or from the AST Investment Grade Bond Portfolio. **A** **summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **.** You can find a copy of the AST Investment
 Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>.

• Transfers
 to and from the Permitted Variable Options, the DCA Market Value Adjustment Options, and the AST Investment Grade Bond Portfolio
 triggered by the predetermined mathematical formula will not count toward the maximum number of free transfers allowable under
 an Annuity.

• Upon
 election of the benefit, 100% of your Unadjusted Account Value must be allocated to the Permitted Variable Options. We may amend the
 Permitted Variable Options from time to time. Changes to the Permitted Variable Options, or to the requirements as to how you may allocate
 your Account Value with this benefit, will apply to new elections of the benefit and may apply to current participants in the benefit. To the extent that
 changes apply to current participants in the benefit, they will only apply upon re-allocation of Account Value, or upon addition
 of subsequent Purchase Payments. That is, we will not require such current participants to re-allocate Account Value to comply with
 any new requirements.

• If
 you elected this benefit, you may be required to reallocate to different Variable Options if you are currently invested in non-permitted Variable Options.
 On the Valuation Day we receive your request in Good Order, we will (i) sell Units of the non-permitted Variable Options and
 (ii) invest the proceeds of those sales in the Variable Options that you have designated. During this reallocation process, your Unadjusted
 Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected
 benefit will commence at the close of business on the following Valuation Day. Thus, the protection afforded by the newly-elected
 benefit will not begin until the close of business on the following Valuation Day.

• Any
 Death Benefit will terminate if withdrawals taken under Highest Daily Lifetime Income 2.0 with HD DB reduce your Unadjusted Account
 Value to zero. This means that any Death Benefit, including the HD DB, will terminate and no Death Benefit is payable if your Unadjusted
 Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal
 to, your Annual Income Amount. (See " [<u>Triggers for Payment of the Death Benefit</u>](#chapter_11-sect1_9_956) "
  for more information.)

• The
 maximum charge for Highest Daily Lifetime Income 2.0 with HD DB is 2.00% annually of the greater of the Unadjusted Account Value and
 Protected Withdrawal Value. As discussed in "Highest Daily Auto Step-Up" above, we may increase the fee upon a step-up under
 this benefit. We
 deduct this charge on quarterly anniversaries of the benefit effective date, based on the values on the last Valuation Day prior to
 the quarterly anniversary. Thus, we deduct, on a quarterly basis, 0.50% of the greater of the prior Valuation Day's Unadjusted Account Value and the prior
 Valuation Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options,
 including the AST Investment Grade Bond Portfolio. You will begin paying this charge as of the effective date of the benefit even if
 you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals and/or
 if you never receive any lifetime income payments.

If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated Purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for Highest Daily Lifetime Income 2.0 with HD DB would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, partial withdrawals may reduce the Unadjusted Account Value to zero. If this happens and the Annual Income Amount is greater than zero, we will make payments under the benefit.

------

[Back to **Table of Contents**](#TOC_956)

**Election of and Designations under the Benefit**

For Highest Daily Lifetime Income 2.0 with HD DB, there must be either a single Owner who is the same as the Annuitant, or if the Annuity is entity owned, there must be a single natural person Annuitant. In either case, the Annuitant must be between 50 and 79 years old. Any change of the Annuitant under the Annuity will result in cancellation of Highest Daily Lifetime Income 2.0 with HD DB. Similarly, any change of Owner will result in cancellation of Highest Daily Lifetime Income 2.0 with HD DB, except if (a) the new Owner has the same taxpayer identification number as the previous Owner, (b) ownership is transferred from a custodian or other entity to the Annuitant, or vice versa or (c) ownership is transferred from one entity to another entity that satisfies our administrative ownership guidelines.

Highest Daily Lifetime Income 2.0 with HD DB can be elected at the time that you purchase your Annuity or after the Issue Date, subject to its availability, and our eligibility rules and restrictions. If you elect Highest Daily Lifetime Income 2.0 with HD DB and terminate it, you cannot re-elect it. See "[<u>Termination of Existing Benefits and Election of New Benefits</u>](#achapter_11-sect1_2_956)" for information pertaining to elections, termination and re-election of benefits. **Please** **note that if you terminate a living benefit and elect Highest Daily Lifetime Income 2.0 with HD DB, you lose the guarantees that you had** **accumulated under your existing benefit and your guarantees under Highest Daily Lifetime Income 2.0 with HD DB will be based on your** **Unadjusted Account Value on the effective date of Highest Daily Lifetime Income 2.0 with HD DB**. You and your financial professional should carefully consider whether terminating your existing benefit is appropriate for you. There is no guarantee that any benefit will be available for election at a later date.

If you wish to elect this benefit and you are currently participating in a systematic withdrawal program, amounts withdrawn under the program must be taken on a proportional basis from your Annuity's Variable Options (i.e., in direct proportion to the proportion that each such Variable Option bears to your total Account Value) in order for you to be eligible for the benefit. Thus, you may not elect Highest Daily Lifetime Income 2.0 with HD DB so long as you participate in a systematic withdrawal program in which withdrawals are not taken on a proportional basis.

**Termination of the Benefit**

You may terminate Highest Daily Lifetime Income 2.0 with HD DB at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit, including the HD DB, will terminate as of the date the termination is effective, and you cannot re-elect the benefit.

**The benefit automatically terminates upon the first to occur of the following:**

**(I)** **your termination of the benefit;** 

**(II)** **your surrender of the Annuity;** 

**(III)** **when annuity payments begin (although if you have elected to receive the Annual Income Amount in the form of** **annuity payments, we will continue to pay the Annual Income Amount);** 

**(IV)** **our receipt of Due Proof of Death of the Owner (or Annuitant if entity owned);** 

**(V)** **both the Unadjusted Account Value and Annual Income Amount equal zero; or** 

**(VI)** **you cease to meet our requirements as described in "Election of and Designations under the Benefit" above or if we** **process a requested change that is not consistent with our allowed Owner, Annuitant or Beneficiary designations.** **\*** 

\* Prior to terminating a benefit, we will send you written notice and provide you with an opportunity to change your designations.

"Due Proof of Death" is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claim forms from at least one Beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary.

Upon termination of Highest Daily Lifetime Income 2.0 with HD DB, other than upon the death of the Owner or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. However, if the amount in the Variable Options is not enough to pay the charge, we will reduce the fee to no more than the amount in the Variable Options. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options, and (ii) unless you are participating in an asset allocation program (i.e., Automatic Rebalancing Program, or 6 or 12 Month DCA Program for which we are providing administrative support), transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If, prior to the transfer from the AST Investment Grade Bond Portfolio, the Unadjusted Account Value in the Variable Options is zero, we will transfer such amounts to the AST Government Money Market Variable Option.

If a surviving spouse elects to continue the Annuity, Highest Daily Lifetime Income 2.0 with HD DB terminates upon Due Proof of Death. The spouse may newly elect the benefit subject to the restrictions discussed above.

H**ow Highest Daily Lifetime Income 2.0 with HD DB Transfers Unadjusted Account Value Between Your Permitted Variable Options and the** **AST Investment Grade Bond Portfolio**

See "How Highest Daily Lifetime Income 2.0 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio" in the discussion of Highest Daily Lifetime Income 2.0 above for information regarding this component of the benefit.

------

[Back to **Table of Contents**](#TOC_956)

**Additional Tax Considerations**

Please see the "Additional Tax Considerations" section under Highest Daily Lifetime Income 2.0 above.

**SPOUSAL HIGHEST DAILY LIFETIME INCOME 2.0 WITH HIGHEST DAILY DEATH BENEFIT**

Spousal Highest Daily Lifetime Income 2.0 with Highest Daily Death Benefit ("HD DB") is a lifetime guaranteed minimum withdrawal benefit, under which, subject to the terms of the benefit, we guarantee your ability to take a certain annual withdrawal amount for the lives of two individuals who are spouses. This benefit also provides for a highest daily death benefit, subject to the terms of the benefit. This version is only being offered in those jurisdictions where we have received regulatory approval and will be offered subsequently in other jurisdictions when we receive regulatory approval in those jurisdictions. We reserve the right, in our sole discretion, to cease offering this benefit for new elections at any time.

We offer a benefit that guarantees, until the death of the Remaining Designated Life (as described below) (the "designated lives", and each, a "designated life"), the ability to withdraw an annual amount (the "Annual Income Amount") equal to a percentage of an initial principal value (the "Protected Withdrawal Value") regardless of the impact of Variable Option performance on the Unadjusted Account Value, subject to our rules regarding the timing and amount of withdrawals. You are guaranteed to be able to withdraw the Annual Income Amount for the lives of the designated lives, provided you have not made withdrawals of Excess Income that result in your Unadjusted Account Value being reduced to zero. We also permit you to designate the first withdrawal from your Annuity as a one-time "Non-Lifetime Withdrawal." You may wish to take a Non-Lifetime Withdrawal if you have an immediate need for access to your Account Value but do not wish to begin lifetime payments under the optional living benefit. All other withdrawals from your Annuity are considered a "Lifetime Withdrawal" under the benefit. Withdrawals are taken first from your own Account Value. We are only required to begin making lifetime income payments to you under our guarantee when and if your Unadjusted Account Value is reduced to zero (for any reason other than due to partial withdrawals of Excess Income) ("Guarantee Payments"). The benefit may be appropriate if you intend to make periodic withdrawals from your Annuity, wish to ensure that Variable Option performance will not affect your ability to receive annual payments, and wish either spouse to be able to continue Spousal Highest Daily Lifetime Income 2.0 with HD DB after the death of the first spouse (subject to the provisions below regarding a Remaining Designated Life), and also want to provide a death benefit. You are not required to make withdrawals as part of the benefit – the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the benefit.

An integral component of Spousal Highest Daily Lifetime Income 2.0 with HD DB is the predetermined mathematical formula we employ that may periodically transfer your Unadjusted Account Value to and from the AST Investment Grade Bond Portfolio. See the section above entitled "How Highest Daily Lifetime Income 2.0 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio."

Spousal Highest Daily Lifetime Income 2.0 with HD DB is the spousal version of Highest Daily Lifetime Income 2.0 with HD DB. Spousal Highest Daily Lifetime Income 2.0 was offered with or without the HD DB component; however, you may only elect HD DB with Spousal Highest Daily Lifetime Income 2.0, and you must elect the HD DB benefit at the time you elect Spousal Highest Daily Lifetime Income 2.0. Please note that if you terminate Spousal Highest Daily Lifetime Income 2.0 and elect Spousal Highest Daily Lifetime Income 2.0 with HD DB you lose the guarantees that you had accumulated under your existing benefit and will begin the new guarantees under the new benefit you elect based on your Unadjusted Account Value as of the date the new benefit becomes active. Spousal Highest Daily Lifetime Income 2.0 with HD DB is offered as an alternative to other lifetime withdrawal options. Currently, if you elect Spousal Highest Daily Lifetime Income 2.0 with HD DB and subsequently terminate the benefit, you may elect another living benefit, subject to our current rules. See "[<u>Termination of Existing Benefits and Election of New Benefits</u>](#achapter_11-sect1_2_956)" for details.

Spousal Highest Daily Lifetime Income 2.0 with HD DB must be elected based on two designated lives, as described below. Each designated life must be between the ages of 50 and 79 years old on the benefit effective date. We will not divide an Annuity or the Spousal Highest Daily Lifetime Income 2.0 with HD DB due to a divorce. See "Election of and Designations under the Benefit" below for details. Spousal Highest Daily Lifetime Income 2.0 with HD DB is not available if you elect any other optional living or death benefit.

As long as your Spousal Highest Daily Lifetime Income 2.0 with HD DB is in effect, you must allocate your Unadjusted Account Value in accordance with the Permitted Variable Options and other Investment Option(s) available with this benefit. **For a more detailed description of the permitted** **Investment Options, see** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956)**.**

**Although you are guaranteed the ability to withdraw your Annual Income Amount for life even if your Unadjusted Account Value falls to zero,** **if any withdrawal is a withdrawal of Excess Income (as described below) and brings your Unadjusted Account Value to zero, your Annual** **Income Amount also would fall to zero, and the benefit and the Annuity then would terminate. In that scenario, no further amount would be** **payable under Spousal Highest Daily Lifetime Income 2.0 with HD DB.**

You may also participate in the 6 or 12 Month Dollar Cost Averaging Program if you elect Spousal Highest Daily Lifetime Income 2.0 with HD DB, subject to the 6 or 12 Month DCA Program's rules. See the section of this prospectus entitled "[<u>Transfer and Rebalancing Programs - 6 or 12 Month Dollar Cost</u> <u>Averaging Program</u>](#chapter_9-sect1_3_956)" for details. No Long-Term Market Value Adjustment Option is permitted if you elect any optional benefit.

------

[Back to **Table of Contents**](#TOC_956)

**Key Feature – Protected Withdrawal Value**

The Protected Withdrawal Value is only used to calculate the initial Annual Income Amount and the benefit fee. The Protected Withdrawal Value is separate from your Unadjusted Account Value and not available as cash or a lump sum withdrawal. On the effective date of the benefit, the Protected Withdrawal Value is equal to your Unadjusted Account Value. On each Valuation Day thereafter until the date of your first Lifetime Withdrawal (excluding any Non-Lifetime Withdrawal discussed below), the Protected Withdrawal Value is equal to the "Periodic Value" described in the next paragraph.

The "Periodic Value" is initially equal to the Unadjusted Account Value on the effective date of the benefit. On each Valuation Day thereafter until the first Lifetime Withdrawal, we recalculate the Periodic Value. We stop determining the Periodic Value upon your first Lifetime Withdrawal after the effective date of the benefit. The Periodic Value is proportionally reduced for any Non-Lifetime Withdrawal. On each Valuation Day (the "Current Valuation Day"), the Periodic Value is equal to the greater of:

1. the
 Periodic Value for the immediately preceding business day (the "Prior Valuation Day") appreciated at the daily equivalent
 of 5% annually during
 the calendar day(s) between the Prior Valuation Day and the Current Valuation Day (i.e., one day for successive Valuation Days,
 but more than one calendar day for Valuation Days that are separated by weekends and/or holidays), plus the amount of any Purchase
 Payment (including any associated Purchase Credits) made on the Current Valuation Day; and

2. the
 Unadjusted Account Value on the current Valuation Day.

If you have not made a Lifetime Withdrawal on or before the 12<sup>th</sup> benefit anniversary of the effective date of the benefit, your Periodic Value on the 12<sup>th</sup> benefit anniversary of the benefit effective date is equal to the greater of:

1. the
 Periodic Value described above or,

2. the
 sum of (a), (b) and (c) proportionally reduced for any Non-Lifetime Withdrawal:

(a) 200% of the Unadjusted Account Value on the effective date of the benefit including any Purchase Payments (including any associated Purchase Credits) made on that day;

(b) 200% of all Purchase Payments (including any associated Purchase Credits) made within one year following the effective date of the benefit; and

(c) all Purchase Payments (including any associated Purchase Credits) made after one year following the effective date of the benefit.

This means that if you do not take a withdrawal on or before the 12<sup>th</sup> benefit anniversary of the benefit effective date, your Protected Withdrawal Value on the 12<sup>th</sup> benefit anniversary will be at least double (200%) your initial Protected Withdrawal Value established on the date of benefit election. If you begin taking Lifetime Withdrawals prior to your 12<sup>th</sup> benefit anniversary, however, these automatic increases will not occur. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

Once the first Lifetime Withdrawal is made, the Protected Withdrawal Value at any time is equal to the greater of (i) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals, and (ii) the highest daily Unadjusted Account Value upon any step-up, increased for subsequent Purchase Payments (including any associated Purchase Credits) and reduced for subsequent Lifetime Withdrawals (see the examples that begin immediately prior to the sub-heading below entitled "Example of dollar-for-dollar reductions").

**Please note that if you elect Spousal Highest Daily Lifetime Income 2.0 with HD DB, your Account Value is not guaranteed, can fluctuate and** **may lose value.**

**Key Feature – Annual Income Amount under Spousal Highest Daily Lifetime Income 2.0 with HD DB**

The Annual Income Amount is equal to a specified percentage of the Protected Withdrawal Value at the first Lifetime Withdrawal and does not reduce in subsequent Annuity Years, as described below. The percentage initially depends on the age of the younger spousal designated life on the date of the first Lifetime Withdrawal after election of the benefit. The percentages are: 2.5% for ages 50-54, 3.5% for ages 55 to 64; 4.5% for ages 65 to 84, and 5.5% for ages 85 and older. We use the age of the younger designated life. If you elected this benefit and one of the Spousal Designated Lives becomes the Remaining Designated Life, we will continue to use the age of the younger of both the original Spousal Designated Lives for purposes of calculating the applicable Annual Income percentage. Under Spousal Highest Daily Lifetime Income 2.0 with HD DB, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year and also will reduce the Protected Withdrawal Value on a dollar-for-dollar basis. If your cumulative Lifetime Withdrawals in an Annuity Year are in excess of the Annual Income Amount for any Annuity Year ("Excess Income"), your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules) by the result of the ratio of the Excess Income to the Unadjusted Account Value immediately prior to such withdrawal (see examples of this calculation below). Excess Income also will reduce the Protected Withdrawal Value by the same ratio.

The amount of any applicable CDSC and/or tax withholding will be included in your withdrawal amount to determine whether your withdrawal is a withdrawal of Excess Income.

• If
 you request a gross withdrawal, the amount of any CDSC and/or tax withholding will be deducted from the amount you actually receive. This
 means you will receive less than you requested. In this instance, in order to avoid a withdrawal of Excess Income, you cannot request
 an amount that would result in cumulative withdrawals in that Annuity Year exceeding your Annual Income Amount.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• If
 you request a net withdrawal, the amount of any CDSC and/or tax withholding will be deducted from your Unadjusted Account Value. This
 means that an amount greater than the amount you requested will be deducted from your Unadjusted Account Value. In this instance, in
 order to avoid a withdrawal of Excess Income, the amount you request plus the amount of any applicable CDSC and/or tax withholding cannot
 cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount. If you request a net withdrawal, you are more
 likely to take a withdrawal of Excess Income than if you request a gross withdrawal.

You may use the systematic withdrawal program to make withdrawals of the Annual Income Amount. Any systematic withdrawal will be deemed a Lifetime Withdrawal under this benefit and must be taken as a gross withdrawal.

Any Purchase Payment that you make subsequent to the election of Spousal Highest Daily Lifetime Income 2.0 with HD DB and subsequent to the first Lifetime Withdrawal will (i) immediately increase the then-existing Annual Income Amount by an amount equal to a percentage of the Purchase Payment (including any associated Purchase Credits) based on the age of the younger designated life at the time of the first Lifetime Withdrawal (the percentages are: 2.5% for ages 50-54, 3.5% for ages 55 to 64, 4.5% for ages 65 to 84, and 5.5% for ages 85 and older), and (ii) increase the Protected Withdrawal Value by the amount of the Purchase Payment (including any associated Purchase Credits).

After your first Lifetime Withdrawal and before your Unadjusted Account Value is reduced to zero, you may make additional Purchase Payments, subject to the limits in the next paragraph. We reserve the right not to accept additional Purchase Payments if the Unadjusted Account Value becomes zero.

If your Annuity permits additional Purchase Payments, we may limit any additional Purchase Payment(s) if we determine that, as a result of the timing and amounts of your additional Purchase Payments and withdrawals, the Annual Income Amount is being increased in an unintended fashion. Among the factors we will use in making a determination as to whether an action is designed to increase the Annual Income Amount in an unintended fashion is the relative size of additional Purchase Payment(s). Subject to state law, we reserve the right to not accept additional Purchase Payments if we are not then offering this benefit for new elections. We will exercise such reservation of right for all annuity purchasers in the same class in a nondiscriminatory manner.

**Highest Daily Auto Step-Up**

An automatic step-up feature ("Highest Daily Auto Step-Up") is part of this benefit. As detailed in this paragraph, the Highest Daily Auto Step-Up feature can result in a larger Annual Income Amount subsequent to your first Lifetime Withdrawal. The Highest Daily Step-Up starts with the anniversary of the Issue Date of the Annuity (the "Annuity Anniversary") immediately after your first Lifetime Withdrawal under the benefit. Specifically, upon the first such Annuity Anniversary, we identify the Unadjusted Account Value on each Valuation Day within the immediately preceding Annuity Year after your first Lifetime Withdrawal. Having identified the highest daily value (after all daily values have been adjusted for subsequent Purchase Payments and withdrawals), we then multiply that value by a percentage that varies based on the age of the younger spousal designated life on the Annuity Anniversary as of which the step-up would occur. The percentages are 2.5% for ages 50-54, 3.5% for ages 55 to 64, 4.5% for ages 65 to 84, and 5.5% for ages 85 and older. If that value exceeds the existing Annual Income Amount, we replace the existing amount with the new, higher amount. Otherwise, we leave the existing Annual Income Amount intact. We will not automatically increase your Annual Income Amount solely as a result of your attaining a new age that is associated with a new age-based percentage. The Unadjusted Account Value on the Annuity Anniversary is considered the last daily step-up value of the Annuity Year. In later years (i.e., after the first Annuity Anniversary after the first Lifetime Withdrawal), we determine whether an automatic step-up should occur on each Annuity Anniversary by performing a similar examination of the Unadjusted Account Values that occurred on Valuation Days during the year. Taking Lifetime Withdrawals could produce a greater difference between your Protected Withdrawal Value and your Unadjusted Account Value, which may make a Highest Daily Auto Step-up less likely to occur. At the time that we increase your Annual Income Amount, we also increase your Protected Withdrawal Value to equal the highest daily value upon which your step-up was based only if that results in an increase to the Protected Withdrawal Value. Your Protected Withdrawal Value will never be decreased as a result of an income step-up. If, on the date that we implement a Highest Daily Auto StepUp to your Annual Income Amount, the charge for Spousal Highest Daily Lifetime Income 2.0 with HD DB has changed for new purchasers, you may be subject to the new charge at the time of such step-up. Prior to increasing your charge for Spousal Highest Daily Lifetime Income 2.0 with HD DB upon a step-up, we would notify you, and give you the opportunity to cancel the automatic step-up feature. If you receive notice of a proposed step-up and accompanying fee increase, you should carefully evaluate whether the amount of the step-up justifies the increased fee to which you will be subject. Any such increased charge will not be greater than the maximum charge set forth in the table entitled "[<u>Benefits Available Under the</u> <u>Contract</u>](#chapter_11-sect1_1_956)".

If you are enrolled in a systematic withdrawal program, we will not automatically increase the withdrawal amount when there is an increase to the Annual Income Amount. You must notify us in order to increase the withdrawal amount of any systematic withdrawal program.

Spousal Highest Daily Lifetime Income 2.0 with HD DB does not affect your ability to take withdrawals under your Annuity, or limit your ability to take partial withdrawals that exceed the Annual Income Amount. Under Spousal Highest Daily Lifetime Income 2.0 with HD DB, if your cumulative Lifetime Withdrawals in an Annuity Year are less than or equal to the Annual Income Amount, they will not reduce your Annual Income Amount in subsequent Annuity Years, but any such withdrawals will reduce the Annual Income Amount on a dollar-for-dollar basis in that Annuity Year. If, cumulatively, you withdraw an amount less than the Annual Income Amount in any Annuity Year, you cannot carry over the unused portion of the Annual Income Amount to subsequent Annuity Years. If your cumulative Lifetime Withdrawals in an Annuity Year exceed the Annual Income Amount, your Annual Income Amount in subsequent years will be reduced (except with regard to Required Minimum Distributions for this Annuity that comply with our rules).

Because both the Protected Withdrawal Value and Annual Income Amount are determined in a way that is not solely related to Unadjusted Account Value, it is possible for the Unadjusted Account Value to fall to zero, even though the Annual Income Amount remains.

------

[Back to **Table of Contents**](#TOC_956)

Examples of dollar-for-dollar and proportional reductions and the Highest Daily Auto Step-Up are set forth below. The values shown here are purely hypothetical, and do not reflect the charges for the Spousal Highest Daily Lifetime Income 2.0 with HD DB or any other fees and charges under the Annuity. Assume the following for all three examples:

• The
 Issue Date is November 1, 2012

• Spousal
 Highest Daily Lifetime Income 2.0 with HD DB is elected on August 1, 2013

• Both
 designated lives were 70 years old when they elected Spousal Highest Daily Lifetime Income 2.0 with HD DB

• The
 first withdrawal is a Lifetime Withdrawal

**Example of Dollar-for-Dollar Reductions**

On October 24, 2013, the Protected Withdrawal Value is $120,000, resulting in an Annual Income Amount of $5,400 (since the younger designated life is between the ages of 65 and 84 at the time of the first Lifetime Withdrawal, the Annual Income Amount is 4.5% of the Protected Withdrawal Value, in this case 4.5% of $120,000). The Highest Daily Death Benefit Amount is $115,420. Assuming $2,500 is withdrawn from the Annuity on this date, the remaining Annual Income Amount for that Annuity Year (up to and including October 31, 2013) is $2,900. This is the result of a dollar- for-dollar reduction of the Annual Income Amount ($5,400 less $2,500 = $2,900) and the Highest Daily Death Benefit Amount ($115,420 less $2,500 = $112,920.).

**Example of Proportional Reductions**

Continuing the previous example, assume an additional withdrawal of $5,000 occurs on October 29, 2013 the Account Value at the time and immediately prior to this withdrawal is $118,000, and the Highest Daily Death Benefit Amount is $112,920. The first $2,900 of this withdrawal reduces the Annual Income Amount for that Annuity Year to $0, and reduces the Highest Daily Death Benefit Amount on a dollar-for dollar basis to $110,020. The remaining withdrawal amount of $2,100 reduces the Annual Income Amount in future Annuity Years and the Highest Daily Death Benefit Amount on a proportional basis based on the ratio of the Excess Income to the Account Value immediately prior to the Excess Income. (Note that if there are other future withdrawals in that Annuity Year, each would result in another proportional reduction to the Annual Income Amount and the Highest Daily Death Benefit Amount).

**Here is the calculation:**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; *<u>Annual Income Amount</u>* |  | &nbsp;&nbsp;&nbsp; *<u>Highest Daily Death Benefit Amount</u>* |  |
| &nbsp;&nbsp;&nbsp; Account Value before Lifetime Withdrawal | $118000.00 | &nbsp;&nbsp;&nbsp; Account Value before Lifetime Withdrawal | $118000.00 |
| &nbsp;&nbsp;&nbsp; Amount of "non" Excess Income | $2900.00 | &nbsp;&nbsp;&nbsp; Amount of "non" Excess Income | $2900.00 |
| &nbsp;&nbsp;&nbsp; Account Value immediately before |  | &nbsp;&nbsp;&nbsp; Account Value immediately before |  |
| &nbsp;&nbsp;&nbsp; Excess Income of $2,100 | $115100.00 | &nbsp;&nbsp;&nbsp; Excess Income of $2,100 | $115100.00 |
| &nbsp;&nbsp;&nbsp; Excess Income amount | $2100.00 | &nbsp;&nbsp;&nbsp; Excess Income amount | $2100.00 |
| &nbsp;&nbsp;&nbsp; Ratio ($2,100/$115,100 = 1.82%) | 1.82% | &nbsp;&nbsp;&nbsp; Ratio ($2,100/$115,100 = 1.82%) | 1.82% |
| &nbsp;&nbsp;&nbsp; Annual Income Amount | $5400.00 | &nbsp;&nbsp;&nbsp; HD DB Amount | $110020.00 |
| &nbsp;&nbsp;&nbsp; 1.82% Reduction in Annual Income Amount | $98.28 | &nbsp;&nbsp;&nbsp; 1.82% Reduction in Annual Income Amount | $2002.36 |
| &nbsp;&nbsp;&nbsp; Annual Income Amount for future Annuity Years | $5301.72 | &nbsp;&nbsp;&nbsp; Highest Daily Death Benefit Amount | $108017.64 |

---

**Example of Highest Daily Auto Step-up**

On each Annuity Anniversary date after the first Lifetime Withdrawal, the Annual Income Amount is stepped-up if the applicable Withdrawal Percentage (based on the Annuitant's age on that Annuity Anniversary) of the highest daily value since your first Lifetime Withdrawal (or last Annuity Anniversary in subsequent years), adjusted for withdrawals and additional Purchase Payments is greater than the Annual Income Amount, adjusted for Excess Income and additional Purchase Payments.

Example 1 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $238,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

------

[Back to **Table of Contents**](#TOC_956)

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is greater than the previous highest daily Unadjusted Account Value of $238, 0000, the highest daily Unadjusted Account Value becomes $239,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $239,000 = $11,950. Since the AIA of $12,000 is greater, there is no Auto Step-Up and the AIA will remain at $12,000.

Example 2 – Assume the following:

• The
 first Lifetime Withdrawal was taken in a prior Annuity Year

• The
 Annuity Anniversary is July 1

• The
 AIA for this Annuity Year is $12,000

• The
 applicable Withdrawal Percentage is 5%

• There
 were no excess withdrawals during the annuity year

• The
 highest daily Unadjusted Account Value for this Annuity Year through June 30 is $242,000

• The
 Unadjusted Account Value on July 1 is $239,000

• There
 are no withdrawals or additional Purchase Payments on July 1.

On the anniversary, July 1, we will evaluate whether an Auto Step-Up will occur. First, we check to see if the highest daily Unadjusted Account Value has changed. Since the Unadjusted Account Value on July 1 is less than the previous highest daily Unadjusted Account Value of $239, 0000, the highest daily Unadjusted Account Value remains $242,000. Next, we check to see if the AIA should step up. The applicable Withdrawal Percentage of the highest daily Unadjusted Account Value is 5% of $242,000 = $12,100. Since this amount is greater than the existing AIA, the AIA is automatically stepped-up to $12,100.

**Non-Lifetime Withdrawal Feature**

You may take a one-time non-lifetime withdrawal ("Non-Lifetime Withdrawal") under Spousal Highest Daily Lifetime Income 2.0 with HD DB. It is an optional feature of the benefit that you can only elect at the time of your first withdrawal. You cannot take a Non-Lifetime Withdrawal in an amount that would cause your Annuity's Account Value, after taking the withdrawal, to fall below the minimum Surrender Value (see "[<u>Surrender Value</u>](#chapter_13-sect1_8_956)"). This Non-Lifetime Withdrawal will not establish your initial Annual Income Amount and the Periodic Value described earlier in this section will continue to be calculated. However, the total amount of the withdrawal will proportionally reduce all guarantees associated with Spousal Highest Daily Lifetime Income 2.0 with HD DB. You must tell us at the time you take the partial withdrawal if your withdrawal is intended to be the Non-Lifetime Withdrawal and not the first Lifetime Withdrawal under Spousal Highest Daily Lifetime Income 2.0 with HD DB. If you do not designate the withdrawal as a Non-Lifetime Withdrawal, the first withdrawal you make will be the first Lifetime Withdrawal that establishes your Annual Income Amount, which is based on your Protected Withdrawal Value. Once you elect the Non-Lifetime Withdrawal or Lifetime Withdrawals, no additional Non-Lifetime withdrawals may be taken. If you do not take a Non-Lifetime Withdrawal before beginning Lifetime Withdrawals, you lose the ability to take it.

The Non-Lifetime Withdrawal will proportionally reduce the Protected Withdrawal Value. It will also proportionally reduce the Periodic Value guarantee on the twelfth anniversary of the benefit effective date (see description in "Key Feature – Protected Withdrawal Value," above) and the Highest Daily Death Benefit Amount. It will reduce each value by the percentage the total withdrawal amount (including any applicable CDSC) represents of the then current Account Value immediately prior to the time of the withdrawal. The Non-Lifetime Withdrawal could result in a lower Annual Income Amount at the time you take your first Lifetime Withdrawal depending on the amount of the proportional reduction described above and duration of time between your Non-Lifetime and first Lifetime Withdrawal. As such, you should carefully consider when it is most appropriate for you to begin taking withdrawals under the benefit.

If you are participating in a systematic withdrawal program, the first withdrawal under the program cannot be classified as the Non-Lifetime Withdrawal. The first withdrawal under the program will be considered a Lifetime Withdrawal.

**Example – Non-Lifetime Withdrawal (proportional reduction)**

This example is purely hypothetical and does not reflect the charges for the benefit or any other fees and charges under the Annuity. It is intended to illustrate the proportional reduction of the Non-Lifetime Withdrawal under this benefit. Assume the following:

• The
 Issue Date is December 3, 2012

• Spousal
 Highest Daily Lifetime Income 2.0 with HD DB is elected on September 4, 2013

• The
 Unadjusted Account Value at benefit election was $105,000

• Each
 designated life was 70 years old when he/she elected Spousal Highest Daily Lifetime Income 2.0 with HD DB

• No
 previous withdrawals have been taken under Spousal Highest Daily Lifetime Income 2.0 with HD DB

On October 3, 2013, the Protected Withdrawal Value is $125,000, the 12<sup>th</sup> benefit year minimum Periodic Value guarantee is $210,000, the Highest Daily Death Benefit Amount is $115,420, and the Account Value is $120,000. Assuming $15,000 is withdrawn from the Annuity on October 3, 2013 and is designated as a Non-Lifetime Withdrawal, all guarantees associated with Spousal Highest Daily Lifetime Income 2.0 with HD DB will be reduced by the ratio of the total withdrawal amount to the Account Value just prior to the withdrawal being taken.

------

[Back to **Table of Contents**](#TOC_956)

**Here is the calculation:**

---

| | |
|:---|:---|
|  Withdrawal amount | $15000.00 |
|  Divided by Account Value before withdrawal | $120000.00 |
|  Equals ratio | 12.5% |
|  All guarantees will be reduced by the above ratio (12.5%) |  |
|  Protected Withdrawal Value | $109375.00 |
|  12<sup>th</sup> benefit year Minimum Periodic Value | $183750.00 |
|  Highest Daily Death Benefit Amount | $100992.50 |

---

**Required Minimum Distributions**

See the sub-section entitled "[<u>Required Minimum Distributions</u>](#chapter_13-sect1_7_956)" in the prospectus section above concerning Highest Daily Lifetime Income 2.0 for a discussion of the relationship between the RMD amount and the Annual Income Amount.

**Highest Daily Death Benefit**

A Death Benefit is payable under Spousal Highest Daily Lifetime Income 2.0 with HD DB (until we begin making Guarantee Payments under the benefit or annuity payments have begun) upon the death of the Remaining Designated Life when we receive Due Proof of Death. The Death Benefit is the greatest of: the Minimum Death Benefit or the Highest Daily Death Benefit Amount described below.

*Highest Daily Death Benefit Amount:*

On the date you elect Spousal Highest Daily Lifetime Income 2.0 with HD DB, the Highest Daily Death Benefit Amount is equal to your Unadjusted Account Value. On each subsequent Valuation Day, until the date of death of the decedent, the Highest Daily Death Benefit Amount will be the greater of:

1. The
 Unadjusted Account Value on the current Valuation Day; and

2. The
 Highest Daily Death Benefit Amount of the immediately preceding Valuation Day,

○ increased
 by any Purchase Payments made on the current Valuation Day and,

○ reduced
 by the effect of withdrawals made on the current Valuation Day, as described below.

Please note that the Highest Daily Death Benefit Amount does not have any guaranteed growth rate associated with it and therefore can be a different amount than any of the guaranteed values associated with the living benefit features of Spousal Highest Daily Lifetime Income 2.0 with HD DB.

A Non-Lifetime Withdrawal will proportionately reduce the Highest Daily Death Benefit Amount by the ratio of the Non-Lifetime Withdrawal to the Account Value immediately prior to the Non-Lifetime Withdrawal. A Lifetime Withdrawal that is not considered Excess Income will reduce the Highest Daily Death Benefit Amount (dollar-for-dollar) by the amount of the withdrawal. All or a portion of a Lifetime Withdrawal that is considered Excess Income will proportionately reduce the Highest Daily Death Benefit Amount by the ratio of the Excess Income to the Account Value immediately prior to the withdrawal of the Excess Income.

The Highest Daily Death Benefit will be calculated on the date of death of the Remaining Designated Life and will be:

• increased
 by the amount of any additional Adjusted Purchase Payments, and

• reduced
 by the effect of any withdrawals (as described in the preceding paragraph), made during the period between the decedent's date of
 death and the date we receive Due Proof of Death.

We will reduce the Highest Daily Death Benefit Amount payable under this benefit by Purchase Credits applied during the period beginning 12 months prior to the decedent's date of death and ending on the date we receive Due Proof of Death. We may waive, on a non-discriminatory basis, our right to deduct such Purchase Credits.

**Please note that Highest Daily Death Benefit Amount is available only until we make Guarantee Payments under Spousal Highest Daily Death** **Benefit 2.0 with HD DB or annuity payments begin. This means that any withdrawals that reduce your Unadjusted Account Value to zero will** **also reduce the Highest Daily Death Benefit Amount to zero.** 

**All other provisions applicable to Death Benefits under your Annuity continue to apply. See the "**[**<u>Basic Death Benefit</u>**](#chapter_11-sect1_11_956)**" section of this** **prospectus for more information pertaining to Death Benefits.**

**Benefits Under Spousal Highest Daily Lifetime Income 2.0 with HD DB**

• To
 the extent that your Unadjusted Account Value was reduced to zero as a result of cumulative Lifetime Withdrawals in an Annuity Year that
 are less than or equal to the Annual Income Amount, and Guarantee Payments amounts are still payable under Spousal Highest Daily
 Lifetime Income 2.0 with HD DB, we will make an additional payment, if any, for that Annuity Year equal to the remaining Annual Income
 Amount for the Annuity Year. Thus, in that scenario, the remaining Annual Income Amount would be payable even though your Unadjusted
 Account Value was reduced to zero. In subsequent Annuity Years we make payments that equal the Annual Income Amount

------

[Back to **Table of Contents**](#TOC_956)

as described in this section. We will continue to make payments until the simultaneous deaths of both spousal designated lives, or the death of the Remaining Designated Life. After the Unadjusted Account Value is reduced to zero, you are not permitted to make additional Purchase Payments to your Annuity. **To the extent that cumulative partial withdrawals in an Annuity Year exceed the Annual** **Income Amount ("Excess Income") and reduce your Unadjusted Account Value to zero, Spousal Highest Daily Lifetime Income** **2.0 with HD DB terminates, we will make no further payments of the Annual Income Amount and no additional Purchase** **Payments will be permitted.** 

• Please
 note that if your Unadjusted Account Value is reduced to zero, all subsequent payments will be treated as Guarantee Payments. Further,
 the Guarantee Payments in each Annuity Year subsequent to the Annuity Year your Account Value is reduced to zero will be treated
 as annuity payments.

• Please
 note that if your Unadjusted Account Value is reduced to zero due to withdrawals or Annuitization, any Death Benefit value, including
 the HD DB, will terminate. This means that the HD DB is terminated and no Death Benefit is payable if your Unadjusted Account Value
 is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or less than or equal to, your Annual Income
 Amount.

• If
 annuity payments are to begin under the terms of your Annuity, or if you decide to begin receiving annuity payments and there is an Annual
 Income Amount due in subsequent Annuity Years, you can elect one of the following two options:

1. apply
 your Unadjusted Account Value, less any applicable state required premium tax, to any annuity option available; or

2. request
 that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Annual Income Amount.
 We will make payments until the death of the Remaining Designated Life. We must receive your request in a form acceptable
 to us at our Service Center. If applying your Unadjusted Account Value, less any applicable tax charges, to our current life
 only (or joint life, depending on the number of designated lives remaining) annuity payment rates results in a higher annual payment,
 we will give you the higher annual payment.

• In
 the absence of an election when mandatory annuity payments are to begin, we currently make annual annuity payments as a joint and survivor
 or single (as applicable) life fixed annuity with eight payments certain, by applying the greater of the annuity rates then currently available or the
 annuity rates guaranteed in your Annuity. We reserve the right at any time to increase or decrease the certain period in order
 to comply with the Code (e.g., to shorten the period certain to match life expectancy under applicable IRS tables). The amount that will
 be applied to provide such annuity payments will be the greater of:

1. the
 present value of the future Annual Income Amount payments (if no Lifetime Withdrawal was ever taken, we will calculate the Annual
 Income Amount as if you made your first Lifetime Withdrawal on the date the annuity payments are to begin). Such present value
 will be calculated using the greater of the joint and survivor or single (as applicable) life fixed annuity rates then currently available
 or the joint and survivor or single (as applicable) life fixed annuity rates guaranteed in your Annuity; and

2. the
 Unadjusted Account Value.

**Other Important Considerations**

• Withdrawals
 under the Spousal Highest Daily Lifetime Income 2.0 with HD DB benefit are subject to all of the terms and conditions of the Annuity,
 including any applicable CDSC for the Non-Lifetime Withdrawal as well as partial withdrawals that exceed the Annual Income Amount.
 If you have an active systematic withdrawal program running at the time you elect this benefit, the first systematic withdrawal that processes
 after your election of the benefit will be deemed a Lifetime Withdrawal. Withdrawals made while Spousal Highest Daily Lifetime Income
 2.0 with HD DB is in effect will be treated, for tax purposes, in the same way as any other withdrawals under the Annuity. Any withdrawals
 made under the benefit will be taken on a proportional basis from the Variable Options (including the AST Investment Grade Bond
 Portfolio) and the DCA Market Value Adjustment Options. If you have an active systematic withdrawal program running at the time you
 elect this benefit, the program must withdraw funds on a proportional basis.

• Any
 Lifetime Withdrawal that does not cause cumulative withdrawals in that Annuity Year to exceed your Annual Income Amount is not subject
 to a CDSC, even if the total amount of such withdrawals in any Annuity Year exceeds the maximum Free Withdrawal amount. For example,
 if your Free Withdrawal amount is $10,000 and your Annual Income Amount is $11,000, withdrawals of your entire Annual Income
 Amount in any Annuity Year would not trigger a CDSC. If you withdrew $12,000, however, $1,000 would be subject to a CDSC.

• You
 should carefully consider when to begin taking Lifetime Withdrawals. If you begin taking withdrawals early, you may maximize the time
 during which you may take Lifetime Withdrawals due to longer life expectancy, and you will be using an optional benefit for which you are paying a charge.
 On the other hand, you could limit the value of the benefit if you begin taking withdrawals too soon. For example, withdrawals
 reduce your Unadjusted Account Value and may limit the potential for increasing your Protected Withdrawal Value. You should discuss
 with your financial professional when it may be appropriate for you to begin taking Lifetime Withdrawals.

• You
 cannot allocate Purchase Payments or transfer Unadjusted Account Value to or from the AST Investment Grade Bond Portfolio. **A** **summary description of the AST Investment Grade Bond Portfolio appears in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) . In
 addition, you can find a copy of the AST
 Investment Grade Bond Portfolio prospectus by going to <u>www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-USP</u>.

• Transfers
 to and from the Permitted Variable Options, the DCA Market Value Adjustment Options, and the AST Investment Grade Bond Portfolio
 triggered by the predetermined mathematical formula will not count toward the maximum number of free transfers allowable under
 an Annuity.

------

[Back to **Table of Contents**](#TOC_956)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

• Upon
 election of the benefit, 100% of your Unadjusted Account Value must be allocated to the Permitted Variable Options. We may amend the
 Permitted Variable Options from time to time. Changes to Permitted Variable Options, or to the requirements as to how you may allocate
 your Unadjusted Account Value with this benefit, will apply to new elections of the benefit and may apply to current participants in the
 benefit. To the extent that changes apply to current participants in the benefit, they will apply only upon re-allocation of Unadjusted Account Value, or
 to any additional Purchase Payments that are made after the changes have gone into effect. That is, we will not require such
 current participants to re-allocate Unadjusted Account Value to comply with any new requirements.

• If
 you elected this benefit, you may be required to reallocate to different Variable Options if you are currently invested in non-permitted Variable Options.
 On the Valuation Day we receive your request in Good Order, we will (i) sell Units of the non-permitted Variable Options and
 (ii) invest the proceeds of those sales in the Variable Options that you have designated. During this reallocation process, your Unadjusted
 Account Value allocated to the Variable Options will remain exposed to investment risk, as is the case generally. The newly-elected
 benefit will commence at the close of business on the following Valuation Day. Thus, the protection afforded by the newly-elected
 benefit will not begin until the close of business on the following Valuation Day.

• Any
 Death Benefit will terminate if withdrawals taken under Spousal Highest Daily Lifetime Income 2.0 with HD DB reduce your Unadjusted
 Account Value to zero. This means that any Death Benefit, including the HD DB, will terminate and no Death Benefit is payable
 if your Unadjusted Account Value is reduced to zero as the result of either a withdrawal in excess of your Annual Income Amount or
 less than or equal to, your Annual Income Amount. (See " [<u>Triggers for Payment of the Death Benefit</u>](#chapter_11-sect1_9_956) "
 for more information.)

• Spousal
 Continuation: If a Death Benefit is not payable on the death of a spousal designated life (e.g., if the first of the spousal designated
 lives to die is the Beneficiary but not an Owner), Spousal Highest Daily Lifetime Income 2.0 with HD DB will remain in force unless
 we are instructed otherwise.

**Charge for Spousal Highest Daily Lifetime Income v2.0 with HDDB**

The maximum charge for Spousal Highest Daily Lifetime Income 2.0 with HD DB is 2.00% annually of the greater of the Unadjusted Account Value and Protected Withdrawal Value. As discussed in "Highest Daily Auto Step-Up" above, we may increase the fee upon a step-up under this benefit. We deduct this charge on quarterly anniversaries of the benefit effective date, based on the values on the last Valuation Day prior to the quarterly anniversary. Thus, we deduct, on a quarterly basis, 0.50% of the greater of the prior Valuation Day's Unadjusted Account Value, or the prior Valuation Day's Protected Withdrawal Value. We deduct the fee on a proportional basis from each of your Variable Options, including the AST Investment Grade Bond Portfolio. You will begin paying this charge as of the effective date of the benefit even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid if you choose never to take any withdrawals and/or if you never receive any lifetime income payments.

If the deduction of the charge would result in the Unadjusted Account Value falling below the lesser of $500 or 5% of the sum of the Unadjusted Account Value on the effective date of the benefit plus all Purchase Payments made subsequent thereto (and any associated Purchase Credits) (we refer to this as the "Account Value Floor"), we will only deduct that portion of the charge that would not cause the Unadjusted Account Value to fall below the Account Value Floor. If the Unadjusted Account Value on the date we would deduct a charge for the benefit is less than the Account Value Floor, then no charge will be assessed for that benefit quarter. Charges deducted upon termination of the benefit may cause the Unadjusted Account Value to fall below the Account Value Floor. If a charge for Spousal Highest Daily Lifetime Income 2.0 with HD DB would be deducted on the same day we process a withdrawal request, the charge will be deducted first, then the withdrawal will be processed. The withdrawal could cause the Unadjusted Account Value to fall below the Account Value Floor. While the deduction of the charge (other than the final charge) may not reduce the Unadjusted Account Value to zero, withdrawals may reduce the Unadjusted Account Value to zero. If the Unadjusted Account Value is reduced to zero as a result of a partial withdrawal that is not a withdrawal of Excess Income and the Annual Income Amount is greater than zero, we will make payments under the benefit.

**Election of and Designations under the Benefit**

Spousal Highest Daily Lifetime Income 2.0 with HD DB can only be elected based on two designated lives. Designated lives must be natural persons who are each other's spouses at the time of election of the benefit. Currently, Spousal Highest Daily Lifetime Income 2.0 with HD DB only may be elected if the Owner, Annuitant, and Beneficiary designations are as follows:

• One
 Annuity Owner, where the Annuitant and the Owner are the same person and the sole Beneficiary is the Owner's spouse. Each Owner/Annuitant
 and the Beneficiary must be between 50-79 years old at the time of election; or

• Co-Annuity
 Owners, where the Owners are each other's spouses. The Beneficiary designation must be the surviving spouse, or the spouses
 named equally. One of the Owners must be the Annuitant. Each Owner must be between 50 and 79 years old at the time of election;
 or

• One
 Annuity Owner, where the Owner is a Custodial Account established to hold retirement assets for the benefit of the Annuitant pursuant
 to the provisions of Section 408(a) of the Code (or any successor Code section thereto) ("Custodial Account"), the Beneficiary
 is the Custodial
 Account, and the spouse of the Annuitant is the Contingent Annuitant. Each of the Annuitant and the Contingent Annuitant must
 be between 50 and 79 years old at the time of election.

*Remaining Designated Life:* A Remaining Designated Life must be a natural person and must have been listed as one of the spousal designated lives when the benefit was elected. A spousal designated life will become the Remaining Designated Life on the earlier of the death of the first of the spousal designated lives to die or divorce from the other spousal designated life while the benefit is in effect. That said, if a spousal designated life is removed as

------

[Back to **Table of Contents**](#TOC_956)

Owner, Beneficiary, or Annuitant due to divorce, the other spousal designated life becomes the Remaining Designated Life when we receive notice of the divorce, and any other documentation we require, in Good Order. Any new Beneficiary(ies) named by the Remaining Designated Life will not be a spousal designated life.

We do not permit a change of Owner under this benefit, except as follows: (a) if one Owner dies and the surviving spousal Owner assumes the Annuity, or (b) if the Annuity initially is co-owned, but thereafter the Owner who is not the Annuitant is removed as Owner. We permit changes of Beneficiary designations under this benefit. However, if the Beneficiary is changed, the benefit may not be eligible to be continued upon the death of the first designated life. If the designated lives divorce, Spousal Highest Daily Lifetime Income 2.0 with HD DB may not be divided as part of the divorce settlement or judgment. Nor may the divorcing spouse who retains ownership of the Annuity appoint a new designated life upon remarriage. Our current administrative procedure is to treat the division of an Annuity as a withdrawal from the existing Annuity. Any applicable CDSC will apply to such a withdrawal. The non-Owner spouse may then decide whether s/he wishes to use the withdrawn funds to purchase a new Annuity, subject to the rules that are current at the time of purchase.

Spousal Highest Daily Lifetime Income 2.0 with HD DB can be elected at the time that you purchase your Annuity or after the Issue Date, subject to its availability, and our eligibility rules and restrictions. If you elect Spousal Highest Daily Lifetime Income 2.0 with HD DB and terminate it, you cannot re-elect it. See "[<u>Termination of Existing Benefits and Election of New Benefits</u>](#achapter_11-sect1_2_956)" for information pertaining to elections, termination and reelection of benefits. **Please note that if you terminate a living benefit and elect Spousal Highest Daily Lifetime Income 2.0 with HD DB, you lose the** **guarantees that you had accumulated under your existing benefit, and your guarantees under Spousal Highest Daily Lifetime Income 2.0 with** **HD DB will be based on your Unadjusted Account Value on the effective date of Spousal Highest Daily Lifetime Income 2.0 with HD DB.** You and your financial professional should carefully consider whether terminating your existing benefit is appropriate for you. There is no guarantee that any benefit will be available for election at a later date.

If you wish to elect this benefit and you are currently participating in a systematic withdrawal program, amounts withdrawn under the program must be taken on a proportional basis from your Annuity's Variable Options (i.e., in direct proportion to the proportion that each such Variable Option bears to your total Account Value) in order for you to be eligible for the benefit. Thus, you may not elect Spousal Highest Daily Lifetime Income 2.0 so long as you participate in a systematic withdrawal program in which withdrawals are not taken on a proportional basis.

**Termination of the Benefit**

You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will terminate as of the date the termination is effective, and you cannot re-elect the benefit.

**The benefit automatically terminates upon the first to occur of the following:**

**(I)** **upon our receipt of Due Proof of Death of the first designated life who is an Owner (or who is the Annuitant if entity** **owned), if the Remaining Designated Life elects not to continue the Annuity;** 

**(II)** **upon our receipt of Due Proof of Death of an Owner (or Annuitant if entity owned) if the surviving spouse is not** **eligible to continue the benefit because such spouse is not a spousal designated life and there is any Unadjusted** **Account Value on the date of death;** 

**(III)** **upon our receipt of Due Proof of Death of the Remaining Designated Life if a Death Benefit is payable under this** **benefit;** 

**(IV)** **your termination of the benefit;** 

**(V)** **your surrender of the Annuity;** 

**(VI)** **the Latest Annuity Date or your election to begin receiving annuity payments (although if you have elected to take** **annuity payments in the form of the Annual Income Amount, we will continue to pay the Annual Income Amount);** 

**(VII)** **both the Unadjusted Account Value and Annual Income Amount equal zero; or** 

**(VIII)** **you cease to meet our requirements as described in "Election of and Designations under the Benefit" above or if we** **process a requested change that is not consistent with our allowed Owner, Annuitant or Beneficiary designations.** **\*** 

\* Prior to terminating the benefit, we will send you written notice and provide you with an opportunity to change your designations.

"Due Proof of Death" is satisfied when we receive all of the following in Good Order: (a) a death certificate or similar documentation acceptable to us; (b) all representations we require or which are mandated by applicable law or regulation in relation to the death claim and the payment of death proceeds (representations may include, but are not limited to, trust or estate paperwork (if needed); consent forms (if applicable); and claim forms from at least one Beneficiary); and (c) any applicable election of the method of payment of the death benefit, if not previously elected by the Owner, by at least one Beneficiary.

Upon termination of Spousal Highest Daily Lifetime Income 2.0 with HD DB other than upon the death of the Remaining Designated Life or Annuitization, we impose any accrued fee for the benefit (i.e., the fee for the pro-rated portion of the year since the fee was last assessed), and thereafter we cease deducting the charge for the benefit. This final charge will be deducted even if it results in the Unadjusted Account Value falling below the Account Value Floor. However, if the amount in the Variable Options is not enough to pay the charge, we will reduce the fee to no more than the amount in the Variable Options. With regard to your investment allocations, upon termination we will: (i) leave intact amounts that are held in the Permitted Variable Options, and (ii) unless you are participating in an asset allocation program (i.e., Automatic Rebalancing Program, or 6 or 12 Month DCA Program for which we are

------

[Back to **Table of Contents**](#TOC_956)

providing administrative support), transfer all amounts held in the AST Investment Grade Bond Portfolio to your Variable Options, on a proportional basis (i.e. in the same proportion as the current balances in your Variable Options). If, prior to the transfer from the AST Investment Grade Bond Portfolio, the Unadjusted Account Value in the Variable Options is zero, we will transfer such amounts to the AST Government Money Market Variable Option.

**How Spousal Highest Daily Lifetime Income 2.0 with HD DB Transfers Unadjusted Account Value Between Your Permitted Variable Options** **and the AST Investment Grade Bond Portfolio**

See "How Highest Daily Lifetime Income 2.0 Transfers Unadjusted Account Value Between Your Permitted Variable Options and the AST Investment Grade Bond Portfolio" in the discussion of Highest Daily Lifetime Income 2.0 above for information regarding this component of the benefit.

**Additional Tax Considerations**

Please see the Additional Tax Considerations section under Highest Daily Lifetime Income 2.0 above.

------

[Back to **Table of Contents**](#TOC_956)

**APPENDIX F – OPTIONAL DEATH BENEFITS**

------

These benefits were offered March 15, 2010 to August 19, 2012.

Two optional Death Benefits are offered for purchase with your Annuity to provide an enhanced level of protection for your Beneficiaries. No optional Death Benefit is available if your Annuity is held as a Beneficiary Annuity. The optional Death Benefits are called the Highest Anniversary Value Death Benefit and the Combination 5% Roll-up and Highest Anniversary Value Death Benefit. Currently, these optional Death Benefits are only offered in those jurisdictions where we have received regulatory approval and must be elected at the time that you purchase your Annuity. Neither optional Death Benefit is available with the Highest Daily Lifetime Income 2.0 with HD DB, Spousal Highest Daily Lifetime Income 2.0 with HD DB, Highest Daily Lifetime Income 2.0 with LIA, Highest Daily Lifetime Income with LIA or Highest Daily Lifetime 6 Plus with LIA. If you purchase either Highest Daily Lifetime Income 2.0 or Spousal Highest Daily Lifetime Income 2.0 and withdrawals taken under either reduce your Unadjusted Account Value to zero, your optional Death Benefit will terminate. You may not elect both optional Death Benefits. Investment restrictions apply if you elect either optional Death Benefit. **See the chart in** [**<u>Appendix A</u>**](#chapter_18-sect1_1_956) **of the prospectus for a list of Investment Options available and permitted with each benefit.** If subsequent to your election of an optional Death Benefit, we change our requirements as to how your Account Value must be allocated, we will not compel you to re-allocate your Account Value in accordance with our newly-adopted requirements. We reserve the right to cease offering any optional Death Benefit.

**Key Terms Used with the Highest Anniversary Value Death Benefit and the Combination 5% Roll-Up and Highest Anniversary Value Death** **Benefit:** 

• The  **<u>Death Benefit Target Date</u>** for both the Highest Anniversary Value Death Benefit and the Combination 5% Roll-up and HAV Death Benefit
 initially is the later of (a) the anniversary of the Issue Date coinciding with or next following the date the oldest Owner (or Annuitant,
 if the Annuity is entity-owned) reaches age 80 and (b) the fifth anniversary of the Issue Date of the Annuity. If there is a change of
 Owner (or Annuitant, if the Annuity is entity-owned) prior to the Death Benefit Target Date, then we will set the Death Benefit Target Date with reference
 to the age of the oldest Owner (or Annuitant). However, we will not change the Death Benefit Target Date if the change
 of Owner (or Annuitant, for an entity-owned Annuity) occurs after the previous Death Benefit Target Date.

• The  **<u>Highest Anniversary Value</u>** on the Issue Date is equal to your Unadjusted Account Value (including any Purchase Credits, in the case
 of the X Series). Thereafter, we calculate a Highest Anniversary Value on each anniversary of the Issue Date of the Annuity ("Annuity Anniversary")
 up to and including the earlier of the date of death or attainment of the Death Benefit Target Date. On each such anniversary,
 the Anniversary Value is equal to the greater of (a) the previous Highest Anniversary Value and (b) the Unadjusted Account Value
 on each such Anniversary. Between such anniversaries, the Highest Anniversary Value is increased by the sum of all Purchase Payments
 (including any associated Purchase Credits) since the prior anniversary date and reduced by any Proportional Withdrawals since
 the prior anniversary date.

•  **<u>The Roll-Up Value.</u>** The initial Roll-Up Value is equal to the Unadjusted Account Value on the Issue Date of the Annuity. Each day we increase
 the Roll-up Value, plus the amount of any additional Purchase Payments you make after the effective date of the Death Benefit (including
 Purchase Credits with respect to the X Series), at the daily equivalent of a 5% annual rate. We stop increasing the Roll-Up Value
 at the 5% annual rate on the first to occur of the following: (1) the decedent's date of death and (2) the Death Benefit Target
 Date. After we stop
 increasing the Roll-Up Value at the 5% annual rate, we continue to increase the Roll-Up Value by the amount of any additional
 Purchase Payments (including Purchase Credits with respect to the X Series) made after that date.

•  **<u>Proportional Withdrawals</u>** are determined by calculating the ratio of the amount of the withdrawal (including any applicable CDSC and Market
 Value Adjustment) to the Account Value as of the date of the withdrawal but immediately prior to the withdrawal. Proportional withdrawals
 result in a reduction to the Highest Anniversary Value or Roll-Up value by reducing such value in the same proportion as the Account
 Value was reduced by the withdrawal as of the date the withdrawal occurred. For example, if your Highest Anniversary Value or Roll-up
 value is $125,000 and you subsequently withdraw $10,000 at a time when your Account Value is equal to $100,000 (a 10% reduction),
 then we will reduce your Highest Anniversary Value or Roll-Up value ($125,000) by 10%, or $12,500.

**Highest Anniversary Value Death Benefit ("HAV")**

If an Annuity has one Owner, the Owner must be age 79 or less at the time the Highest Anniversary Value Optional Death Benefit is elected. If an Annuity has joint Owners, the oldest Owner must be age 79 or less upon election. If an Annuity is owned by an entity, the Annuitant must be age 79 or less upon election.

**Calculation of Highest Anniversary Value Death Benefit**

If the decedent's date of death occurs ***before*** the Death Benefit Target Date, the Death Benefit equals the greater of:

1. the
 greater of the minimum Death Benefit described above, and

2. the
 Highest Anniversary Value as of the date on which we receive Due Proof of Death, less any Purchase Credits granted during the period
 beginning 12 months prior to the date of death and ending on the date we receive Due Proof of Death. This means that we will recapture
 any Purchase Credits granted with respect to Purchase Payments we receive beginning 12 months prior to the date of death and
 thereafter.

------

[Back to **Table of Contents**](#TOC_956)

If the Owner dies ***on or after*** the Death Benefit Target Date, the Death Benefit equals the greater of:

1. the
 minimum Death Benefit described above, and

2. the
 Highest Anniversary Value on the Death Benefit Target Date, plus any Purchase Payments (and associated Purchase Credits) since the
 Death Benefit Target Date, less the effect of any Proportional Withdrawals since the Death Benefit Target Date, and less any Purchase Credits granted during
 the period beginning 12 months prior to the date of death and ending on the date we receive Due Proof of Death.

This Death Benefit may not be an appropriate feature where the oldest Owner's age (Annuitant if entity owned) is near age 80. This is because the benefit may not have the same potential for growth as it otherwise would, since there will be fewer Annuity anniversaries before the Death Benefit Target Date is reached.

**Combination 5% Roll-Up and Highest Anniversary Value Death Benefit**

If an Annuity has one Owner, the Owner must be age 79 or less at the time the Combination 5% Roll-up and HAV Optional Death Benefit is purchased. If an Annuity has joint Owners, the oldest Owner must be age 79 or less upon election. If the Annuity is owned by an entity, the Annuitant must be age 79 or less upon election.

**Calculation of 5% Roll-Up and Highest Anniversary Value Death Benefit**

The Combination 5% Roll-up and HAV Death Benefit equals the greatest of:

If the decedent's date of death occurs ***before*** the Death Benefit Target Date, the Death Benefit equals the greater of:

1. the
 greater of the minimum Death Benefit described above, and

2. the
 Highest Anniversary Value as of the date on which we receive Due Proof of Death, less any Purchase Credits granted during the period
 beginning 12 months prior to the date of death and ending on the date we receive Due Proof of Death.

3. the Roll-Up Value as described above.

If the Owner dies ***on or after*** the Death Benefit Target Date, the Death Benefit equals the greater of:

1. the
 greater of the minimum Death Benefit described above, and,

2. the
 Highest Anniversary Value on the Death Benefit Target Date plus any Purchase Payments (and associated Purchase Credits) since the
 Death Benefit Target Date, less the effect of any Proportional Withdrawals since the Death Benefit Target Date, and, less any Purchase
 Credits granted during the period beginning 12 months prior to the date of death and ending on the date we receive Due Proof of
 Death.

3. the Roll-Up Value as described above.

This Death Benefit may not be an appropriate feature where the oldest Owner's age (Annuitant if entity owned) is near age 80. This is because the benefit may not have the same potential for growth as it otherwise would, since there will be fewer Annuity anniversaries, and less time for the Roll-Up Value to increase, before the Death Benefit Target Date is reached.

**Effect of Withdrawals on the Roll-Up Value prior to Death Benefit Target Date.** Withdrawals prior to the Death Benefit Target Date reduce the Roll-Up Value by the amount of the withdrawal until an annual "dollar-for-dollar" limit has been reached, and withdrawals in excess of the dollar-for-dollar limit then reduce the Roll-Up Value proportionally. Until the first Anniversary of the Issue Date, the dollar-for-dollar limit is equal to 5% of the initial Roll-Up Value. On each Annuity Anniversary thereafter, we reset the dollar-for-dollar limit to equal 5% of the Roll-Up Value on that anniversary. When all or a portion of a withdrawal exceeds the dollar-for-dollar limit for that Annuity Year, the excess portion of the withdrawal proportionally reduces the Roll-Up Value. The proportional reduction decreases the Roll-Up Value by the ratio of the excess withdrawal (i.e., the amount of the withdrawal that exceeds the dollar-for-dollar limit in that Annuity Year) to your Account Value (after the Account Value has been reduced by any portion of the withdrawal that was within the dollar-for-dollar limit but IS NOT reduced by the excess withdrawal).

**Effect of Withdrawals on the Roll-Up Value on or after the Death Benefit Target Date.** All withdrawals after the Death Benefit Target Date are Proportional Withdrawals.

**What are the charges for the optional Death Benefits?**

For elections of the Highest Anniversary Value Death Benefit and the Combination 5% Roll-Up and HAV Death Benefit, we impose a maximum charge equal to 0.40% and 0.80%, respectively, per year of the daily net assets of the Variable Options. We deduct the charge for each of these benefits to compensate Pruco Life for providing increased insurance protection under the optional Death Benefits. The additional annualized charge is deducted daily against your Account Value allocated to the Variable Options.

------

[Back to **Table of Contents**](#TOC_956)

**Can I terminate the optional Death Benefits?**

The Highest Anniversary Value Death Benefit and the Combination 5% Roll-up and HAV Death Benefit may not be terminated by you once elected. Each optional Death Benefit will terminate upon the first to occur of the following:

• the
 date that the Death Benefit is determined, unless the Annuity is continued by a spouse Beneficiary;

• upon your designation of a new Owner or Annuitant who, as of the effective date of the change, is older than the age at which we
 would then issue
 the Death Benefit (or if we do not then consent to continue the Death Benefit);

• upon
 the Annuity Date;

• upon
 surrender of the Annuity; or

• if
 your Account Value reaches zero (which can happen if, for example, you are taking withdrawals under an optional living benefit).

Where an Annuity is structured so that it is owned by a grantor trust but the Annuitant is not the grantor, then the Annuity is required to be surrendered upon the death of the grantor if the grantor pre-deceases the Annuitant under Section 72(s) of the Code. Under this circumstance, the Surrender Value will be paid out to the Beneficiary, and is not eligible for the Death Benefit provided under the Annuity.

Upon termination, we cease to assess the fee for the optional Death Benefit.

------

[Back to **Table of Contents**](#TOC_956)

**APPENDIX G – FORMULA FOR GRO PLUS II**

------

**THE FOLLOWING ARE THE TERMS AND DEFINITIONS REFERENCED IN THE TRANSFER CALCULATION FORMULA:**

• AV
 is the current Account Value of the Annuity

• V <sub>V</sub> is the current Account Value of the elected Variable Options of the Annuity

• V <sub>F</sub> is the current Account Value of amounts held in the Market Value Adjustment Options

• B
 is the total current value of the AST bond Portfolio

• C <sub>l</sub> is the lower target value. Currently, it is 79%.

• C <sub>t</sub> is the middle target value. Currently, it is 82%.

• C <sub>u</sub> is the upper target value. Currently, it is 85%.

• T
 is the amount of a transfer into or out of the AST bond Portfolio Variable Option.

For each guarantee provided under the benefit,

• G <sub>i</sub> is the guarantee amount

• N <sub>i</sub> is the number of days until the Maturity Date

• d <sub>i</sub> is the discount rate applicable to the number of days until the Maturity Date. It is determined with reference a benchmark index, reduced

• by
 the Discount Rate Adjustment and subject to the discount rate minimum. The discount rate minimum, beginning on the effective date of the
 benefit, is three percent, and will decline monthly over the first twenty-four months following the effective date of the benefit to one percent in the twenty-fifth
 month, and will remain at one percent for every month thereafter. Once selected, we will not change the applicable
 benchmark index. However, if the benchmark index is discontinued, we will substitute a successor benchmark index, if there is one.
 Otherwise we will substitute a comparable benchmark index. We will obtain any required regulatory approvals prior to substitution of the
 benchmark index.

The formula, which is set on the effective date and is not changed while the benefit is in effect, determines, on each Valuation Day, when a transfer is required.

The formula begins by determining the value on that Valuation Day that, if appreciated at the applicable discount rate, would equal the guarantee amount at the end of each applicable Guarantee Period. We call the greatest of these values the "current liability (L)."

L = MAX (L<sub>i</sub>), where L<sub>i </sub>= G<sub>i</sub>/(1 + d<sub>i</sub>)^(N<sub>i</sub>/365)

Next the formula calculates the following formula ratio:

r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>)

If the formula ratio exceeds an upper target value, then all or a portion of the Account Value will be transferred to the AST bond Portfolio Variable Option associated with the current liability subject to the rule that prevents a transfer into that AST bond Portfolio Variable Option if 90% or more of Account Value is in that Variable Option (90% cap). If at the time we make a transfer to the AST bond Portfolio Variable Option associated with the current liability there is Account Value allocated to an AST bond Portfolio Variable Option not associated with the current liability, we will transfer all assets from that AST bond Portfolio Variable Option to the AST bond Portfolio Variable Option associated with the current liability.

The formula will transfer assets into the AST bond Portfolio Variable Option if r (greater than) Cu, subject to the 90% cap. The transfer amount is calculated by the following formula:

T = {Min (MAX(0, (.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B), [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If the formula ratio is less than a lower target value and there are assets in the AST bond Portfolio Variable Option, then the formula will transfer assets out of the AST bond Portfolio Variable Option into the elected Variable Options.

The formula will transfer assets out of the AST bond Portfolio Variable Option if r (less than) Cl and B (greater than) 0. The transfer amount is calculated by the following formula:

T = {Min (B, – [L - B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>]/(1 - C<sub>t</sub>))}

If following a transfer to the elected Variable Options, there are assets remaining in a AST bond Portfolio Variable Option not associated with the current liability, we will transfer all assets from that AST bond Portfolio Variable Option to the AST bond Portfolio Variable Option associated with the current liability.

------

[Back to **Table of Contents**](#TOC_956)

**90% Cap Rule:** If, on any Valuation Day the Rider remains in effect, a transfer into the AST bond Portfolio Variable Option occurs which results in 90% of the Account Value being allocated to the AST bond Portfolio Variable Option, any transfers into the AST bond Portfolio Variable Option will be suspended even if the formula would otherwise dictate that a transfer into the AST bond Portfolio Variable Option should occur. Transfers out of the AST bond Portfolio Variable Option and into the elected Variable Options will still be allowed. The suspension will be lifted once a transfer out of the AST bond Portfolio Variable Option occurs. Due to the performance of the AST bond Portfolio Variable Option and the elected Variable Options, the Account Value could be more than 90% invested in the AST bond Portfolio Variable Option.

------

[Back to **Table of Contents**](#TOC_956)

**APPENDIX H – FORMULA FOR HIGHEST DAILY GRO II FORMULA FOR ELECTIONS OF HIGHEST** **DAILY GRO II MADE PRIOR TO JULY 16, 2010** 

------

**THE FOLLOWING ARE THE TERMS AND DEFINITIONS REFERENCED IN THE TRANSFER CALCULATION FORMULA:**

• AV
 is the current Account Value of the Annuity

• V <sub>V</sub> is the current Account Value of the elected Variable Options of the Annuity

• V <sub>F</sub> is the current Account Value of amounts held in the Market Value Adjustment Options

• B
 is the total current value of the AST bond Portfolio Variable Option

• C <sub>l</sub> is the lower target value. Currently, it is 79%.

• C <sub>t</sub> is the middle target value. Currently, it is 82%.

• C <sub>u</sub> is the upper target value. Currently, it is 85%.

• T
 is the amount of a transfer into or out of the AST bond Portfolio Variable Option.

For each guarantee provided under the benefit,

• G <sub>i</sub> is the guarantee amount.

• N <sub>i</sub> is the number of days until the Maturity Date.

• d <sub>i</sub> is the discount rate applicable to the number of days until the Maturity Date. It is determined with reference a benchmark index, reduced by the Discount Rate
 Adjustment and subject to the discount rate minimum. The discount rate minimum, beginning on the effective date of the
 benefit, is three percent, and will decline monthly over the first twenty-four months following the effective date of the benefit to one percent in the twenty-fifth
 month, and will remain at one percent for every month thereafter. Once selected, we will not change the applicable
 benchmark index. However, if the benchmark index is discontinued, we will substitute a successor benchmark index, if there is one.
 Otherwise we will substitute a comparable benchmark index. We will obtain any required regulatory approvals prior to substitution of the
 benchmark index.

The formula, which is set on the effective date and is not changed while the benefit is in effect, determines, on each Valuation Day, when a transfer is required.

The formula begins by determining the value on that Valuation Day that, if appreciated at the applicable discount rate, would equal the guarantee amount at the end of each applicable Guarantee Period. We call the greatest of these values the "current liability (L)."

L = MAX (L<sub>i</sub>), where L<sub>i </sub>= G<sub>i</sub>/(1 + d<sub>i</sub>)^(N<sub>i</sub>/365)

Next the formula calculates the following formula ratio:

r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>)

If the formula ratio exceeds an upper target value, then all or a portion of the Account Value will be transferred to the AST bond Portfolio Variable Option associated with the current liability subject to the rule that prevents a transfer into that AST bond Portfolio Variable Option if 90% or more of Account Value is in that Variable Option (90% cap). If at the time we make a transfer to the AST bond Portfolio Variable Option associated with the current liability there is Account Value allocated to an AST bond Portfolio Variable Option not associated with the current liability, we will transfer all assets from that AST bond Portfolio Variable Option to the AST bond Portfolio Variable Option associated with the current liability.

The formula will transfer assets into the AST bond Portfolio Variable Option if r (greater than) Cu, subject to the 90% cap.

The transfer amount is calculated by the following formula:

T = {Min (MAX(0, (.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B), [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If the formula ratio is less than a lower target value and there are assets in the AST bond Portfolio Variable Option, then the formula will transfer assets out of the AST bond Portfolio Variable Option into the elected Variable Options.

The formula will transfer assets out of the AST bond Portfolio Variable Option if r (less than) C<sub>l</sub> and B (greater than) 0. The transfer amount is calculated by the following formula:

T = {Min (B, – [L - B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>]/(1 - C<sub>t</sub>))}

------

[Back to **Table of Contents**](#TOC_956)

If following a transfer to the elected Variable Options, there are assets remaining in a AST Bond Portfolio not associated with the current liability, we will transfer all assets from that AST Bond Portfolio Variable Option to the AST Bond Portfolio Variable Option associated with the current liability.

**90% Cap Rule:** If, on any Valuation Day the Rider remains in effect, a transfer into the AST bond Portfolio Variable Option occurs which results in 90% of the Account Value being allocated to the AST bond Portfolio Variable Option, any transfers into the AST bond Portfolio Variable Option will be suspended even if the formula would otherwise dictate that a transfer into the AST bond Portfolio Variable Option should occur. Transfers out of the AST bond Portfolio Variable Option and into the elected Variable Options will still be allowed. The suspension will be lifted once a transfer out of the AST bond Portfolio Variable Option occurs. Due to the performance of the AST bond Portfolio Variable Option and the elected Variable Options, the Account Value could be more than 90% invested in the AST bond Portfolio Variable Option.

**Formula for elections of HD GRO II made on or after July 16, 2010, subject to state approval.** 

The operation of the formula is the same as for elections of HD GRO II prior to July 16, 2010. The formula below provides additional information regarding the concept of the Projected Future Guarantee throughout the Transfer Calculation.

**THE FOLLOWING ARE THE TERMS AND DEFINITIONS REFERENCED IN THE TRANSFER CALCULATION FORMULA:** 

• AV
 is the current Account Value of the Annuity

• V <sub>V</sub> is the current Account Value of the elected Variable Options of the Annuity

• V <sub>F</sub> is the current Account Value of the elected Fixed Rate Options of the Annuity

• B
 is the total current value of the Transfer Account

• C <sub>l</sub> is the lower target value; it is established on the Effective Date and is not changed for the life of the guarantee

• C <sub>t</sub> is the middle target value; it is established on the Effective Date and is not changed for the life of the guarantee

• C <sub>u</sub> is the upper target value; it is established on the Effective Date and is not changed for the life of the guarantee

• T
 is the amount of a transfer into or out of the Transfer Account

• "Projected
 Future Guarantee" is an amount equal to the highest Account Value (adjusted for Withdrawals and additional Net Purchase Payments)
 within the current Benefit Year that would result in a new Guarantee Amount. For the Projected Future Guarantee, the assumed
 Guarantee Period begins on the current Valuation Day and ends 10 years from the next anniversary of the Effective Date. We only
 calculate a Projected Future Guarantee if the assumed Guarantee Period associated with that Projected Future Guarantee does not extend
 beyond the latest Annuity Date applicable to the Annuity.

The formula, which is set on the Effective Date and is not changed while the Rider is in effect, determines, on each Valuation Day, when a transfer is required.

The formula begins by determining for each Guarantee Amount and for the Projected Future Guarantee, the value on that Valuation Day that, if appreciated at the applicable discount rate, would equal the Guarantee Amount at the end of the Guarantee Period. We call the greatest of these values the "current liability (L)".

L = MAX (L<sub>i</sub>), where L<sub>i</sub>= Gi / (1 + d<sub>i</sub>)<sup>(Ni/365)</sup>

Where:

• G <sub>i</sub> is the value of the Guarantee Amount or the Projected Future Guarantee

• N <sub>i</sub> is the number of days until the end of the Guarantee Period

• d <sub>i</sub> is the discount rate associated with the number of days until the end of a Guarantee Period (or the assumed Guarantee Period, for the Projected Future
 Guarantee). The discount rate is determined by taking the greater of the Benchmark Index Interest Rate less the Discount
 Rate Adjustment, and the Discount Rate Minimum. The applicable term of the Benchmark Index Interest Rate is the same as the number
 of days remaining until the end of the Guarantee Period (or the assumed Guarantee Period, for the Projected Future Guarantee). If
 no Benchmark Index Interest Rate is available for such term, the nearest available term will be used. The Discount Rate Minimum is determined
 based on the number of months since the Effective Date.

Next the formula calculates the following formula ratio (r):

r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>)

If the formula ratio exceeds an upper target value, then Unadjusted Account Value will be transferred to the bond Portfolio Variable Option associated with the current liability subject to the 90% Cap Rule. If, at the time we make a transfer to the bond Portfolio Variable Option associated with the current liability, there is Unadjusted Account Value allocated to a bond Portfolio Variable Option not associated with the current liability, we will transfer all assets from that bond Portfolio Variable Option to the bond Portfolio Variable Option associated with the current liability.

The formula will transfer assets into the Transfer Account if r (greater than) Cu and if transfers have not been suspended due to the 90% Cap Rule. Assets in the elected Variable Options and Fixed Rate Options, if applicable, are transferred to the Transfer Account in accordance with the Transfer provisions of the Rider.

------

[Back to **Table of Contents**](#TOC_956)

The transfer amount is calculated by the following formula:

T = {Min (MAX(0, (.90 × (V<sub>V</sub> + V<sub>F</sub> + B)) – B), [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))}

If the formula ratio is less than a lower target value, and there are assets in the Transfer Account, then the formula will transfer assets out of the Transfer Account and into the elected Variable Options.

The formula will transfer assets out of the Transfer Account if r (less than) C<sub>l</sub> and B (greater than) 0.

The transfer amount is calculated by the following formula:

T = {Min (B, – [L - B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>]/(1 - C<sub>t</sub>))}

If, following a transfer to the elected Variable Options, there are assets remaining in a bond Portfolio Variable Option not associated with the current liability, we will transfer all assets from that bond Portfolio Variable Option to the bond Portfolio Variable Option associated with the current liability.

**90% Cap Rule:** If, on any Valuation Day the Rider remains in effect, a transfer into the Transfer Account occurs which results in 90% of the Unadjusted Account Value being allocated to the Transfer Account, any transfers into the Transfer Account will be suspended even if the formula would otherwise dictate that a transfer into the Transfer Account should occur. Transfers out of the Transfer Account and into the elected Variable Options will still be allowed. The suspension will be lifted once a transfer out of the Transfer Account occurs. Due to the performance of the Transfer Account and the elected Variable Options, the Unadjusted Account Value could be more than 90% invested in the Transfer Account.

------

[Back to **Table of Contents**](#TOC_956)

**APPENDIX I – FORMULA FOR HIGHEST DAILY LIFETIME INCOME V2.1 SUITE, HIGHEST**<br>**DAILY LIFETIME INCOME 2.0 SUITE, HIGHEST DAILY LIFETIME INCOME SUITE AND**<br>**HIGHEST DAILY LIFETIME 6 PLUS SUITE OF LIVING BENEFITS**

------

This Appendix describes the formula used with the following living benefits:

The Highest Daily Lifetime Income v2.1 Suite:

• Highest
 Daily Lifetime Income v2.1;

• Spousal
 Highest Daily Lifetime Income v2.1;

• Highest
 Daily Lifetime Income v2.1 with Highest Daily Death Benefit; and

• Spousal
 Highest Daily Lifetime Income v2.1 with Highest Daily Death Benefit.

The Highest Daily Lifetime Income 2.0 Suite (offered from August 20, 2012 to February 24, 2013):

• Highest
 Daily Lifetime Income 2.0;

• Highest
 Daily Lifetime Income 2.0 with Lifetime Income Accelerator;

• Spousal
 Highest Daily Lifetime Income 2.0;

• Highest
 Daily Lifetime Income 2.0 with Highest Daily Death Benefit; and

• Spousal
 Highest Daily Lifetime Income 2.0 with Highest Daily Death Benefit.

The Highest Daily Lifetime Income Suite (offered from January 24, 2011 to August 19, 2012):

• Highest
 Daily Lifetime Income;

• Highest
 Daily Lifetime Income with Lifetime Income Accelerator, and

• Spousal
 Highest Daily Lifetime Income.

The Highest Daily Lifetime 6 Plus Suite (offered from March 15, 2010 to January 23, 2011):

• Highest
 Daily Lifetime 6 Plus Income Benefit;

• Highest
 Daily Lifetime 6 Plus Income Benefit with Lifetime Income Accelerator; and

• Spousal
 Highest Daily Lifetime 6 Plus Income Benefit.

**TRANSFERS OF ACCOUNT VALUE BETWEEN YOUR PERMITTED VARIABLE OPTIONS AND** **THE AST INVESTMENT GRADE BOND** **PORTFOLIO**

**TERMS AND DEFINITIONS REFERENCED IN THE CALCULATION FORMULAS:**

• C <sub>u</sub> – the upper target is established on the effective date of the Highest Daily Lifetime Income v2.1 Suite, Highest Daily Lifetime
 Income 2.0 Suite,
 Highest Daily Lifetime Income Suite and Highest Daily Lifetime 6 Plus Suite of benefits (the "Effective Date") and is not
 changed for the life
 of the guarantee. Currently, it is 83%.

• C <sub>us</sub> – The secondary upper target is established on the Effective Date and is not changed for the life of the guarantee. Currently it
 is 84.5%

• C <sub>t</sub> – the target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 80%.

• C <sub>l</sub> – the lower target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 78%.

• L
 – the target value as of the current Valuation Day.

• r
 – the target ratio.

• a
 – factors used in calculating the target value. These factors are established on the Effective Date and are not changed for the
 life of the guarantee.
 (See below for the table of "a" factors)

• V <sub>v</sub> – the total value of all Permitted Variable Options in the Annuity.

• V <sub>F</sub> – the Unadjusted Account Value of all elected DCA Market Value Adjustment Options in the Annuity.

• B
 – the total value of the AST Investment Grade Bond Portfolio.

• P
 – Income Basis. Prior to the first Lifetime Withdrawal, the Income Basis is equal to the Protected Withdrawal Value calculated as
 if the first Lifetime
 Withdrawal were taken on the date of calculation. After the first Lifetime Withdrawal, the Income Basis is equal to the greater of
 (1) the Protected Withdrawal Value on the date of the first Lifetime Withdrawal, increased for additional Purchase Payments, including the amount of any
 associated Purchase Credits, and adjusted proportionally for Excess Income\*, and (2) the Protected Withdrawal Value on
 any Annuity Anniversary subsequent to the first Lifetime Withdrawal, increased for subsequent additional Purchase Payments (including
 the amount of any associated Purchase Credits) and adjusted proportionately for Excess Income\* and (3) any highest daily Unadjusted
 Account Value occurring on or after the later of the immediately preceding Annuity anniversary, or the date of the first Lifetime Withdrawal,
 and prior to or including the date of this calculation, increased for additional Purchase Payments (including the amount of any associated
 Purchase Credits) and adjusted for withdrawals, as described herein.

• T
 – the amount of a transfer into or out of the AST Investment Grade Bond Portfolio.

• T <sub>M</sub> – the amount of a monthly transfer out of the AST Investment Grade Bond Portfolio.

------

[Back to **Table of Contents**](#TOC_956)

\* Note: Lifetime Withdrawals of less than or equal to the Annual Income Amount do not reduce the Income Basis.

**DAILY TARGET VALUE CALCULATION:**

On each Valuation Day, a target value (L) is calculated, according to the following formula. If (V<sub>V</sub> + V<sub>F</sub>) is equal to zero, no calculation is necessary. Target Values are subject to change for new elections of this benefit on a going-forward basis.

L = 0.05 × P × a

**Daily Transfer Calculation:**

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines when a transfer is required:

Target Ratio r = (L – B) / (V<sub>V</sub> + V<sub>F</sub>).

• If
 on the third consecutive Valuation Day r (greater than) C <sub>u</sub> and r (less or =) C <sub>us</sub> or if on any day r (greater than) C <sub>us</sub> ,
 and transfers have not
 been suspended due to the 90% cap rule, assets in the Permitted Variable Options and the DCA Market Value Adjustment Options, if applicable,
 are transferred to the AST Investment Grade Bond Portfolio.

• If r (less than) C <sub>l</sub> ,
 and there are currently assets in the AST Investment Grade Bond Portfolio (B (greater than) 0), assets in the AST Investment
 Grade Bond Portfolio are transferred to the Permitted Variable Options as described above.

**90% Cap Rule:** If, on any Valuation Day this benefit remains in effect, a transfer into the AST Investment Grade Bond Portfolio occurs that results in 90% of the Unadjusted Account Value being allocated to the AST Investment Grade Bond Portfolio, any transfers into the AST Investment Grade Bond Portfolio will be suspended, even if the formula would otherwise dictate that a transfer into the AST Investment Grade Bond Portfolio should occur. Transfers out of the AST Investment Grade Bond Portfolio and into the elected Variable Options will still be allowed. The suspension will be lifted once a transfer out of the AST Investment Grade Bond Portfolio occurs either due to a Daily or Monthly Transfer Calculation. Due to the performance of the AST Investment Grade Bond Portfolio and the elected Variable Options, the Unadjusted Account value could be more than 90% invested in the AST Investment Grade Bond Portfolio.

The following formula, which is set on the Benefit Effective Date and is not changed for the life of the guarantee, determines the transfer amount:

---

| | | | |
|:---|:---|:---|:---|
|  T | = | Min (MAX (0, (0.90 \* (V<sub>V</sub> + V<sub>F</sub> + B)) – B), [L – B – (V<sub>V</sub> + V<sub>F</sub>) \* C<sub>t</sub>] / (1 – C<sub>t</sub>)) | Money is transferred from the Permitted Variable Options and the DCA Market Value Adjustment Options to the AST Investment Grade Bond Portfolio |
|  T | = | {Min (B, – [L – B – (V<sub>V</sub> + V<sub>F</sub>) × C<sub>t</sub>] / (1 – C<sub>t</sub>))} | Money is transferred from the AST Investment Grade Bond Portfolio to the Permitted Variable Options |

---

**Monthly Transfer Calculation**

On each monthly anniversary of the Annuity Issue Date and following the daily Transfer Calculation above, the following formula determines if a transfer from the AST Investment Grade Bond Portfolio to the Permitted Variable Options will occur: If, after the daily Transfer Calculation is performed,

{Min (B,.05 × (V<sub>V</sub> + V<sub>F</sub> + B))} (less than) (C<sub>u</sub>× (V<sub>V</sub> + V<sub>F</sub>) – L + B) / (1 – C<sub>u</sub>), then

T<sub>M</sub> = {Min (B,.05 × (V<sub>V</sub> + V<sub>F</sub> + B))} Money is transferred from the AST Investment Grade Bond Portfolio to the Permitted Variable Options.

------

[Back to **Table of Contents**](#TOC_956)

**"A" Factors for Liability Calculations**

(for the corresponding Year and Month of the Benefit)\*

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Year | Month<br>1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| 1 | 15.34 | 15.31 | 15.27 | 15.23 | 15.20 | 15.16 | 15.13 | 15.09 | 15.05 | 15.02 | 14.98 | 14.95 |
| 2 | 14.91 | 14.87 | 14.84 | 14.80 | 14.76 | 14.73 | 14.69 | 14.66 | 14.62 | 14.58 | 14.55 | 14.51 |
| 3 | 14.47 | 14.44 | 14.40 | 14.36 | 14.33 | 14.29 | 14.26 | 14.22 | 14.18 | 14.15 | 14.11 | 14.07 |
| 4 | 14.04 | 14.00 | 13.96 | 13.93 | 13.89 | 13.85 | 13.82 | 13.78 | 13.74 | 13.71 | 13.67 | 13.63 |
| 5 | 13.60 | 13.56 | 13.52 | 13.48 | 13.45 | 13.41 | 13.37 | 13.34 | 13.30 | 13.26 | 13.23 | 13.19 |
| 6 | 13.15 | 13.12 | 13.08 | 13.04 | 13.00 | 12.97 | 12.93 | 12.89 | 12.86 | 12.82 | 12.78 | 12.75 |
| 7 | 12.71 | 12.67 | 12.63 | 12.60 | 12.56 | 12.52 | 12.49 | 12.45 | 12.41 | 12.38 | 12.34 | 12.30 |
| 8 | 12.26 | 12.23 | 12.19 | 12.15 | 12.12 | 12.08 | 12.04 | 12.01 | 11.97 | 11.93 | 11.90 | 11.86 |
| 9 | 11.82 | 11.78 | 11.75 | 11.71 | 11.67 | 11.64 | 11.60 | 11.56 | 11.53 | 11.49 | 11.45 | 11.42 |
| 10 | 11.38 | 11.34 | 11.31 | 11.27 | 11.23 | 11.20 | 11.16 | 11.12 | 11.09 | 11.05 | 11.01 | 10.98 |
| 11 | 10.94 | 10.90 | 10.87 | 10.83 | 10.79 | 10.76 | 10.72 | 10.69 | 10.65 | 10.61 | 10.58 | 10.54 |
| 12 | 10.50 | 10.47 | 10.43 | 10.40 | 10.36 | 10.32 | 10.29 | 10.25 | 10.21 | 10.18 | 10.14 | 10.11 |
| 13 | 10.07 | 10.04 | 10.00 | 9.96 | 9.93 | 9.89 | 9.86 | 9.82 | 9.79 | 9.75 | 9.71 | 9.68 |
| 14 | 9.64 | 9.61 | 9.57 | 9.54 | 9.50 | 9.47 | 9.43 | 9.40 | 9.36 | 9.33 | 9.29 | 9.26 |
| 15 | 9.22 | 9.19 | 9.15 | 9.12 | 9.08 | 9.05 | 9.02 | 8.98 | 8.95 | 8.91 | 8.88 | 8.84 |
| 16 | 8.81 | 8.77 | 8.74 | 8.71 | 8.67 | 8.64 | 8.60 | 8.57 | 8.54 | 8.50 | 8.47 | 8.44 |
| 17 | 8.40 | 8.37 | 8.34 | 8.30 | 8.27 | 8.24 | 8.20 | 8.17 | 8.14 | 8.10 | 8.07 | 8.04 |
| 18 | 8.00 | 7.97 | 7.94 | 7.91 | 7.88 | 7.84 | 7.81 | 7.78 | 7.75 | 7.71 | 7.68 | 7.65 |
| 19 | 7.62 | 7.59 | 7.55 | 7.52 | 7.49 | 7.46 | 7.43 | 7.40 | 7.37 | 7.33 | 7.30 | 7.27 |
| 20 | 7.24 | 7.21 | 7.18 | 7.15 | 7.12 | 7.09 | 7.06 | 7.03 | 7.00 | 6.97 | 6.94 | 6.91 |
| 21 | 6.88 | 6.85 | 6.82 | 6.79 | 6.76 | 6.73 | 6.70 | 6.67 | 6.64 | 6.61 | 6.58 | 6.55 |
| 22 | 6.52 | 6.50 | 6.47 | 6.44 | 6.41 | 6.38 | 6.36 | 6.33 | 6.30 | 6.27 | 6.24 | 6.22 |
| 23 | 6.19 | 6.16 | 6.13 | 6.11 | 6.08 | 6.05 | 6.03 | 6.00 | 5.97 | 5.94 | 5.92 | 5.89 |
| 24 | 5.86 | 5.84 | 5.81 | 5.79 | 5.76 | 5.74 | 5.71 | 5.69 | 5.66 | 5.63 | 5.61 | 5.58 |
| 25 | 5.56 | 5.53 | 5.51 | 5.48 | 5.46 | 5.44 | 5.41 | 5.39 | 5.36 | 5.34 | 5.32 | 5.29 |
| 26 | 5.27 | 5.24 | 5.22 | 5.20 | 5.18 | 5.15 | 5.13 | 5.11 | 5.08 | 5.06 | 5.04 | 5.01 |
| 27 | 4.99 | 4.97 | 4.95 | 4.93 | 4.91 | 4.88 | 4.86 | 4.84 | 4.82 | 4.80 | 4.78 | 4.75 |
| 28 | 4.73 | 4.71 | 4.69 | 4.67 | 4.65 | 4.63 | 4.61 | 4.59 | 4.57 | 4.55 | 4.53 | 4.51 |
| 29 | 4.49 | 4.47 | 4.45 | 4.43 | 4.41 | 4.39 | 4.37 | 4.35 | 4.33 | 4.32 | 4.30 | 4.28 |
| 30 | 4.26 | 4.24 | 4.22 | 4.20 | 4.18 | 4.17 | 4.15 | 4.13 | 4.11 | 4.09 | 4.07 | 4.06\*\* |

---

\* The values set forth in this table are applied to all ages.

\*\* In all subsequent years and months thereafter, the annuity factor is 4.06

------

[Back to **Table of Contents**](#TOC_956)

**Appendix J – Financial Intermediary Variations**

------

This Appendix describes variations in the availability of Investment Options, Contract benefits, and other Contract features described in this prospectus – including restrictions, limitations, and other variations – which may apply depending on the investment advisor or broker-dealer through which the Contract is sold.

---

| | |
|:---|:---|
|  **Broker-Dealer** | **Variation** |
| &nbsp;&nbsp;&nbsp;&nbsp; United Brokerage Services | Only non-qualified funds are permitted for investment in C Series. |

---

Please note that there may be other variations not included in the Appendix or otherwise described in this prospectus. Variations may be imposed by some investment advisors or broker-dealers without our knowledge. For example, your financial professional may not recommend a particular Investment Option or Contract benefit to you because of a decision by the Financial Professional's broker-dealer not to offer that investment option or benefit to its customers. We have identified all financial intermediary variations that are known or reasonably available to us.

However, taking into consideration the breadth of our distribution network, we cannot obtain information about any other financial intermediary variations without unreasonable effort or expense.

**You should discuss with your financial professional any limitations, restrictions, or other variations related to the Investment Options,** **Contract benefits, or other Contract features available to you through your financial professional.**

------

[Back to **Table of Contents**](#TOC_956)

**MAILING**

------

This prospectus describes the important features of the Annuity and provides information about Pruco Life Insurance Company ("Pruco Life", "we", "our", "the Company", or "us") and the Pruco Life Flexible Premium Variable Annuity Account (Separate Account).

We have filed with the Securities and Exchange Commission ("SEC") a Statement of Additional Information (SAI), dated May 1, 2026 that includes additional information about the Annuity, Pruco Life and the Separate Account. The SAI is incorporated by reference into this prospectus. The SAI is available from us, without charge, upon request. To request a copy of the SAI, to ask about your Annuity, or to make other investor inquiries, please call 1-888-PRU2888.

We file periodic reports and other information about the Annuity and the Separate Account as required under the federal securities laws. Those reports and other information about us are available on the SEC's website at <u>www.sec.gov</u>, and copies of reports and other information may be obtained, upon payment of a duplicating fee, by electronic request at the following email address: publicinfo@sec.gov.

------

[Back to **Table of Contents**](#TOC_956)

[THIS PAGE WAS INTENTIONALLY LEFT BLANK]

------

[Back to **Table of Contents**](#TOC_956)

![](pr956img001.jpg)

The Prudential Insurance Company of America<br>751 Broad Street<br>Newark, NJ 07102-3777

Edgar Contract Identifier: C000082407; C000264555 PPRT2PROS

**Prudential Premier Retirement Variable Annuity X Series ("X Series")**<br>**Prudential Premier Retirement Variable Annuity B Series ("B Series")**<br>**Prudential Premier Retirement Variable Annuity L Series ("L Series")**<br>**Prudential Premier Retirement Variable Annuity C Series ("C Series")**<br>Flexible Premium Deferred Annuity<br>("Annuity" or "Contract")<br>(Applicable to contracts with applications signed from 03/15/2010 – 02/24/2013)<br>**STATEMENT OF ADDITIONAL INFORMATION:** **MAY 1, 2026**<br>**PRUCO LIFE INSURANCE COMPANY**<br>("Pruco Life", "we", "our", the "Company", or "us")<br>**PRUCO LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT**<br>(the "Separate Account")

THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS. THE PROSPECTUS(ES) DATED MAY 1, 2026 CONTAIN(S) INFORMATION THAT YOU SHOULD CONSIDER BEFORE INVESTING. FOR A COPY OF THE PROSPECTUS(ES) SEND A WRITTEN REQUEST TO PRUDENTIAL ANNUITIES SERVICE CENTER, P.O. BOX 7960, PHILADELPHIA, PA 19176 OR TELEPHONE 1-888-PRU-2888. YOU MAY ACCESS THE PROSPECTUS(ES) ON OUR WEBSITE AT THE LINK(S) BELOW.

**Table of Contents**

---

| | |
|:---|:---|
|  | **PAGE** |
| [GENERAL INFORMATION ABOUT PRUDENTIAL ANNUITIES](#chapter_2_984) | [2](#chapter_2_984) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Pruco Life Insurance Company](#chapter_2-sect1_1_984) | [2](#chapter_2-sect1_1_984) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Pruco Life Flexible Premium Variable Annuity Account](#chapter_2-sect1_2_984) | [2](#chapter_2-sect1_2_984) |
| [SERVICE PROVIDERS](#chapter_3_984) | [2](#chapter_3_984) |
| [CONTRACT ADJUSTMENTS](#chapter_4_984) | [3](#chapter_4_984) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Market Value Adjustment Formula & Examples](#chapter_4-sect1_1_984) | [3](#chapter_4-sect1_1_984) |
| [PRINCIPAL UNDERWRITER/DISTRIBUTOR - PRUDENTIAL ANNUITIES DISTRIBUTORS, INC.](#chapter_5_984) | [6](#chapter_5_984) |
| [MISSTATEMENT OF AGE OR SEX](#chapter_6_984) | [9](#chapter_6_984) |
| [FINANCIAL STATEMENTS](#chapter_7_984) | [9](#chapter_7_984) |

---

Prudential Premier Retirement Variable Annuity X , B, L, & C Series (Applicable to contracts with applications signed from 03/15/2010 – 02/24/2013): C000082407, C000264555 www.prudential.com/regdocs/PLAZ-PREMIER-XBLC-STAT

------

[Back to **Table of Contents**](#TOC_984)

**GENERAL INFORMATION ABOUT PRUDENTIAL ANNUITIES**

**Pruco Life Insurance Company**

Pruco Life Insurance Company ("Pruco Life") is a stock life insurance company organized in 1971 under the laws of the State of Arizona. It is licensed to sell life insurance and annuities in the District of Columbia, Guam and in all states except New York. Pruco Life is a wholly-owned subsidiary of The Prudential Insurance Company of America ("Prudential"), a New Jersey stock life insurance company that has been doing business since 1875. Prudential is a direct wholly-owned subsidiary of Prudential Financial, Inc. ("Prudential Financial"), a New Jersey insurance holding company.

**Pruco Life Flexible Premium Variable Annuity Account**

We have established the Pruco Life Flexible Premium Variable Annuity Account ("the Registered Separate Account"), to hold the assets that are associated with the Annuities. The Registered Separate Account was established under Arizona law on June 16, 1995, and is registered with the SEC under the Investment Company Act of 1940 as a unit investment trust, which is a type of investment company. The assets of the Registered Separate Account are held in the name of Pruco Life which is the issuer of the Annuity and the depositor of the Registered Separate Account. Values and benefits based on allocations to the Sub-accounts within the Registered Separate Account will vary with the investment performance of the Portfolios, as applicable. We do not guarantee the investment results of any Sub-account.

**SERVICE PROVIDERS**

We conduct the bulk of our operations through staff employed by the Company or by affiliated companies within the Prudential Financial family. Certain discrete functions have been delegated to non-affiliates that could be deemed "service providers" under the Investment Company Act of 1940. The entities engaged by the Company may change over time. As of December 31, 2025, non-affiliated entities that could be deemed service providers to the Company in connection with the Contract and/or an affiliated insurer within the Company's business unit consisted of those set forth in the table below.

---

| | | |
|:---|:---|:---|
| **Name of Service Provider** | **Services Provided** | **Address** |
|  Broadridge Investor Communication | Proxy services and regulatory mailings | 51 Mercedes Way, Edgewood, NY, 11717 |
|  Docufree Corporation | Records management and administration of annuity contracts<br>Mail receipt/Imaging, check deposits, pricing, ad hoc mailings. | 10 Ed Preate Drive, Moosic PA, 18507 |
|  EXL Service Holdings, Inc | Administration of annuity contracts | 350 Park Avenue, 10th Floor, New York, NY, 10022 |
|  Guidehouse | Claim-related services | 1676 International Drive Suite 800, McLean, VA, 22102 |
|  National Financial Services | Clearing and settlement services for Distributors and Carriers. | 900 Salem St, Smithfield, RI, 02917 |
|  Open Text, Inc | Fax Services | 2440 Sand Hill Rd. Suite 302, Menlo Park, CA, 94025 |
|  PERSHING LLC | Clearing and settlement services for Distributors and Carriers. | One Pershing Plaza, Jersey City, NJ, 07399 |
|  The Depository Trust Clearinghouse Corporation | Clearing and settlement services for Distributors and Carriers. | 570 Washington Boulevard, Jersey City, NJ, 07310 |
|  Thomson Reuters | Tax reporting services | 3 Times Square, New York, NY, 10036 |
|  Universal Wilde | Composition, printing, and mailing of contracts and benefit documents | 135 Will Drive, Canton, MA, 02021 |

---

------

[Back to **Table of Contents**](#TOC_984)

**CONTRACT ADJUSTMENTS**

**Market Value Adjustment Formula ("MVA Formula") & Examples**

**FORMULA FOR LONG-TERM MVA OPTIONS**

The MVA formula is applied separately to each MVA Option to determine the Account Value on a particular date.

The MVA factor is equal to:

[(1+I)/(1+J+K)]<sup>(N/12)</sup>

where:

---

| | | |
|:---|:---|:---|
|  **I** | = | the Crediting Rate for the MVA Option; |
|  **J** | = | the rate for the remaining Guarantee Period, determined as decribed below; |
|  **K** | = | the Liquidity Factor\*, which is 0.0025; and |
|  **N** | = | the number of months remaining in the Guarantee Period, rounded up to the nearest whole month. |

---

\* For contracts issued in Connecticut, on or after August 20, 2012, the Liquidity Factor used in the MVA formula equals zero (0),

---

| | | |
|:---|:---|:---|
|  For the purposes of determining "J", | For the purposes of determining "J", | For the purposes of determining "J", |
|  **Y** | = | N/12 |
|  **GP<sub>1</sub>** | = | the smallest whole number of years greater than or equal to Y. |
|  **r<sub>1</sub>** | = | the rate for Guarantee Periods of duration GP<sub>1</sub>, which will equal the Crediting Rate if the Guarantee Period duration is currently available. |
|  **GP<sub>2</sub>** | = | the greatest whole number of years less than or equal to Y, but not less than 1. |
|  **r<sub>2</sub>** | = | the rate for Guarantee Periods of duration GP<sub>2</sub>, which will equal the Crediting Rate if such Guarantee Period duration is currently available. |

---

If we do not currently offer a Guarantee Period of duration GP<sub>1</sub> or GP<sub>2</sub>, we will determine r<sub>1</sub> and/or r<sub>2</sub> by interpolating between the current rates of Guarantee Periods closest in duration. If we cannot interpolate because such a Guarantee Period is not available, then r<sub>1</sub> and/or r<sub>2</sub> will be equal to [(1) + (2) - (3)], where (1), (2), and (3) are defined as:

**(1)** = the
 current Treasury spot rate for GP <sub>1</sub> or GP <sub>2</sub> ,
 respectively, and

**(2)** = the
 current Crediting Rate for the next longer Guarantee Period duration available, and

**(3)** = the
 current Treasury spot rate for the next longer Guarantee Period duration available,

The term "current Treasury spot rate" means the rates at the time the Crediting Rates were last determined.

------

[Back to **Table of Contents**](#TOC_984)

To determine "J":

If Y is an integer and equal to a Guarantee Period duration that we currently offer, "J" is equal to the Crediting Rate associated with a Guarantee Period duration of Y years.

If Y is less than 1, then "J" = r<sub>2</sub>.

Otherwise, we determine "J" by interpolating between r<sub>1</sub> and r<sub>2</sub>, using the following formula:

---

| | | |
|:---|:---|:---|
|  **J** | = | (r<sub>1</sub> \* (Y - GP<sub>2</sub>) + r<sub>2</sub> \* (GP<sub>1</sub> - Y)) / (GP<sub>1</sub> - GP<sub>2</sub>) |

---

J is subject to the same Guaranteed Minimum Interest Rate as the Crediting Rate.

We reserve the right to waive the liquidity factor set forth above.

**MVA Example For Long-Term MVA Options**

The following hypothetical examples show the effect of the MVA in determining Account Value. Assume the following:

• You
 allocate $100,000 into an MVA Option (we refer to this as the "Allocation Date" in these examples) with a Guarantee Period
 of 5 years (we refer
 to this as the "Maturity Date" in these examples).

• The
 Crediting Rate associated with the MVA Option beginning on Allocation Date and maturing on Maturity Date is 2.50% (I = 2.50%).

• You
 make no withdrawals or transfers until you decide to withdraw the entire MVA Option after exactly three (3) years, at which point 24 months
 remain before the Maturity Date (N = 24).

**Example of Positive MVA**

Assume that at the time you request the withdrawal, the Crediting Rate associated with the fixed allocation maturing on the Maturity Date is 1.50% (J = 1.50%). Based on these assumptions, the MVA would be calculated as follows:

---

| | | |
|:---|:---|:---|
|  MVA Factor | = | [(1+I)/(1+J+K)]<sup>(N/12)</sup> = [1.025/1.0175]<sup>2</sup>= 1.0148 |
|  Unadjusted Value | = | $107689.06 |
|  Adjusted Account Value | = | Unadjusted Value x MVA Factor = $109,282.86 |

---

**Example of Negative MVA**

Assume that at the time you request the withdrawal, the Crediting Rate associated with the fixed allocation maturing on the Maturity Date is 3.50% (J = 3.50%). Based on these assumptions, the MVA would be calculated as follows:

---

| | | |
|:---|:---|:---|
|  MVA Factor | = | [(1+I)/(1+J+K)]<sup>(N/12)</sup> = [1.025/1.0375]<sup>2</sup>= 0.97605 |
|  Unadjusted Value | = | $107689.06 |
|  Adjusted Account Value | = | Unadjusted Value x MVA Factor = $105,109.91 |

---

------

[Back to **Table of Contents**](#TOC_984)

**MVA FORMULA FOR 6 OR 12 MONTH DCA MVA OPTIONS**

The MVA formula is applied separately to each DCA MVA Option to determine the Account Value on a particular date.

The Market Value Adjustment Factor applicable to the MVA Options under the 6 or 12 Month Dollar Cost Averaging Program is as follows:

The MVA factor is equal to:

[(1+I)/(1+J+K)]<sup>(N/12)</sup>

where:

---

| | | |
|:---|:---|:---|
|  **I** | = | the Index Rate established at inception of a DCA MVA Option. This Index Rate will be based on a Constant Maturity Treasury (CMT) rate for a maturity (in months) equal to the initial duration of the DCA MVA Option. This CMT rate will be determined based on the weekly average of the CMT Index of appropriate maturity as of two weeks prior to initiation of the DCA MVA Option. The CMT Index will be based on "Treasury constant maturities nominal 12" rates as published in Federal Reserve Statistical Release H.15. If a CMT index for the number of months needed is not available, the applicable CMT index will be determined based on a linear interpolation of the published CMT indices; |
|  **J** | = | the Index Rate determined at the time the MVA calculation is needed, based on a CMT rate for the amount of time remaining in the DCA MVA Option. The amount of time will be based on the number of complete months remaining in the DCA MVA Option, rounded up to the nearest whole month. This CMT rate will be determined based on the weekly average of the CMT Index of appropriate maturity as of two weeks prior to the date for which the MVA calculation is needed. The CMT Index will be based on "Treasury constant maturities nominal 12" rates as published in Federal Reserve Statistical Release H.15. If a CMT index for the number of months needed is not available, the applicable CMT index will be determined based on a linear interpolation of the published CMT indices; |
|  **K** | = | the Liquidity Factor\*, currently equal to 0.0025; and |
|  **N** | = | the number of complete months remaining in the DCA MVA Option, rounded up to the nearest whole month. |

---

\* For contracts issued in Connecticut or Ohio, the Liquidity Factor equals zero (0).

If the "Treasury constant maturities nominal 12" rates available through Federal Reserve Statistical Release H. 15 should become unavailable at any time, or if the rate for a 1-month maturity should become unavailable through this source, we will substitute rates which, in our opinion, are comparable.

We reserve the right to waive the Liquidity Factor.

------

[Back to **Table of Contents**](#TOC_984)

**PRINCIPAL UNDERWRITER/DISTRIBUTOR - PRUDENTIAL ANNUITIES DISTRIBUTORS, INC.**

Prudential Annuities Distributors, Inc. ("PAD"), a wholly-owned subsidiary of Prudential Insurance Company of America, is the distributor and principal underwriter of the Annuities offered through this prospectus. The Annuity is no longer offered for new sales. PAD acts as the distributor of a number of annuity and life insurance products and the AST Portfolios. PAD's principal business address is One Corporate Drive, Shelton, Connecticut 06484. PAD is registered as a broker/dealer under the Securities Exchange Act of 1934 (Exchange Act), and is a member of the Financial Industry Regulatory Authority (FINRA). PAD enters into distribution agreements with unaffiliated broker/dealers who are registered under the Exchange Act (collectively, "Firms"). Applications for the Annuities are solicited by registered representatives of the Firms. PAD utilizes a network of its own registered representatives to wholesale the Annuities to Firms. Because the Annuities offered through this prospectus are insurance products as well as securities, all registered representatives who sell the Annuities are also appointed insurance agents of Pruco Life.

With respect to all individual annuities issued by Pruco Life, PAD received commissions as follows: 2025: $692,004,270; 2024: $744,837,102; 2023: $541,213,133. PAD retained none of those commissions

In connection with the sale and servicing of the Annuities, Firms may receive cash compensation and/or non-cash compensation. Cash compensation includes discounts, concession, fees, service fees, commissions, asset based sales charges, loans, overrides, or any cash employee benefit received in connection with the sale and distribution of variable contracts. Non-cash compensation includes any form of compensation received in connection with the sale and distribution of variable contracts that is not cash compensation, including but not limited to merchandise, gifts, travel expenses, meals and lodging.

Under the selling agreements, cash compensation in the form of commissions is paid to Firms on sales of the Annuities according to one or more schedules. The selling registered representative will receive all or a portion of the cash compensation, depending on the practice of his or her Firm. Commissions are generally based on a percentage of Purchase Payments made, up to a maximum of 2.0% for the Advisor Series. **Please** **note that third party financial professionals who charge an Advisory Fee for their services are not paid additional commission** **amounts.** Alternative compensation schedules are available that generally provide a lower initial commission plus ongoing quarterly compensation based on all or a portion of Account Value. We may also provide cash compensation to the distributing Firm for providing ongoing service to you in relation to the Annuities. These payments may be made in the form of percentage payments based upon "Assets under Management" or "AUM," (total assets), subject to certain criteria in certain Pruco Life products. These payments may also be made in the form of percentage payments based upon the total amount of money received as Purchase Payments under Pruco Life annuity products sold through the Firm.

In addition, in an effort to promote the sale of our products (which may include the placement of Pruco Life and/or the Annuities on a preferred or recommended company or product list and/or access to the Firm's registered representatives), we, or PAD, may enter into non-cash compensation arrangements with certain Firms with respect to certain or all registered representatives of such Firms under which such Firms may receive fixed payments or reimbursement. These types of fixed payments are made directly to or in sponsorship of the Firm and may include, but are not limited to payment for: training of sales personnel; marketing and/or administrative services and/or other services they provide to us or our affiliates; educating customers of the firm on the features of the Annuities; conducting due diligence and analysis; providing office access, operations, systems and other support; holding seminars intended to educate registered representatives and make them more knowledgeable about the Annuities; conferences (national, regional and top producer); sponsorships; speaker fees; promotional items; a dedicated marketing coordinator; priority sales desk support; expedited marketing compliance approval and preferred programs to PAD; and reimbursements to Firms for marketing activities or other services provided by third-party vendors to the Firms and/or their registered representatives. To the extent permitted by FINRA rules and other applicable laws and regulations, we or PAD may also pay or allow other promotional incentives or payments in other forms of non-cash compensation (e.g., gifts, occasional meals and entertainment, sponsorship of due diligence events). Under certain circumstances, Portfolio advisors/subadvisors or other organizations with which we do business ("Entities") may also receive incidental non-cash compensation, such as meals and nominal gifts. The amount of this non-cash compensation varies widely because some may encompass only a single event, such as a conference, and others have a much broader scope.

Cash and/or non-cash compensation may not be offered to all Firms and Entities and the terms of such compensation may differ between Firms and Entities. In addition, we or our affiliates may provide such compensation, payments and/or incentives to Firms or Entities arising out of the marketing, sale and/or servicing of variable annuities or life insurance offered by different Prudential business units.

The lists below include the names of the Firms and Entities that we are aware (as of December 31, 2025) received compensation with respect to our annuity business generally during 2025 (or as to which a payment amount was accrued during 2025). The Firms and Entities listed include those receiving non-cash and/or cash compensation (as indicated below) in connection with marketing of products issued by Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey. Your registered representative can provide you with more information about the compensation arrangements that apply upon request. Each of these Annuities also is distributed by other selling Firms that previously were appointed only with our former affiliate Prudential Annuities Life Assurance Corporation ("PALAC") now known as Fortitude Life Insurance & Annuity Company ("FLIAC"). Such other selling Firms may have received compensation similar to the types discussed above with respect to their sale of PALAC annuities. In addition, such other selling Firms may, on a going forward basis, receive substantial compensation that is not reflected in this 2025 retrospective depiction. During 2025, non-cash compensation received by Firms and Entities ranged from $19.20 - $1,183,488.83. During 2025, cash compensation received by Firms ranged from $1.50 - $31,403,206.30.

------

[Back to **Table of Contents**](#TOC_984)

**All of the Firms and Entities listed below received non-cash compensation during 2025. In addition, Firms in bold also received cash** **compensation during 2025.**

---

| |
|:---|
|  AE Financial Services |
|  AFS Securities, LLC |
|  AGP - Alliance Global Partners |
|  Alera Group |
|  Alerus |
|  Alexander Capital |
|  Alliance Bernstein, L.P. |
|  Allred Wealth Management |
|  **Allstate Financial Srvcs, LLC** |
|  Ambassador Wealth Management |
|  American Strategic Advisors |
|  Ameriprise Financial, Inc. |
|  Ameritas Investment Corp. |
|  AMUNI Financial, Inc. |
|  Anderson Financial Services |
|  Arete Wealth Management |
|  Arkadios Capital LLC |
|  Ascent Wealth Partners |
|  Assured Partners |
|  **Atria Network** |
|  Ausdal Financial Partners, Inc. |
|  Avantax Investment Services |
| B. Riley Wealth Management inc. |
|  Bancwest Investment Srvcs, Inc |
|  Bankers Life |
|  BCG Securities, Inc. |
|  BDOPS |
|  Beaconsfield Financial Services |
|  Benchmark Financial Wealth Advisors, LLC |
|  Benjamin F. Edwards & Company, Inc. |
|  Berthel Fisher & Company |
|  BMO Capital Markets Corp |
|  Bowers Digmann Financial |
|  Bridgehaven Financial |
|  Brighthouse Financial |
|  Brooklight Place Securities, Inc. |
|  **Cadaret, Grant & Co., Inc.** |
|  Calton & Associates, Inc |
|  **Cambridge Investment Research, Inc.** |
|  Canandaguia Bank |
|  Cantella & Co., Inc. |
|  Capital Investment Group, Inc. |

---

---

| |
|:---|
|  Capital Synergy Partners |
|  Capital Wealth Partners Inc |
|  Capitol Securities Management, Inc. |
|  Carlson Financial Group |
|  Carlton & Associates, Inc. |
|  Cassidy & Company |
|  **Centaurus Financial, Inc.** |
|  Century Financial & Insurance Services |
|  **Cetera Advisor Network LLC** |
|  **CFD Investments** |
|  Chelsea Financial |
|  **Citigroup Global Markets Inc.** |
|  **Citizens Securities, Inc.** |
|  Claricity Wealth & Planning |
|  Clark Capital Management Group |
|  Coastal One |
|  **Commonwealth Financial Network** |
|  Compak Securities |
|  Concorde Investment Services, LLC |
|  **Concourse Financial Group Securities Inc** |
|  Cooley & Labas Financial Advisors |
|  Copper Financial |
|  Cornerstone Financial Services |
|  Creativeone |
|  CRUMP |
|  **CUNA Brokerage Svcs, Inc.** |
|  **CUSO Financial Services, L.P.** |
|  CW Securities |
|  Cypress CU |
|  D.A. Davidson |
|  **David Lerner and Associates** |
|  Dawson & Bertran Investment Advisors |
|  DayMark Wealth Partners |
|  Delaware Life |
|  DFPG Investments LLC |
|  Dimensional Fund Advisors Ltd |
|  Discipline Advisors |
|  Due Diligence Works |
|  DWS |
|  EBH Securities |
|  **Edward Jones & Co.** |
|  Emerson Equity LLC |

---

---

| |
|:---|
|  Empower Credit Union |
|  Envestnet |
|  **Equitable Advisors, LLC** |
|  **Equity Services, Inc.** |
|  ESL Investment Services |
|  Excel Securities & Assoc. |
|  Feldman Financial Group |
|  FID X |
|  Fidelity Investments |
|  Fifth Third Bank |
|  Financial Focus Group |
|  Financial Security Management, Inc |
|  First Asset Financial |
|  First Heartland Capital, Inc. |
|  Fortune Financial Services, Inc. |
|  Franklin Templeton |
|  Frontier Asset |
|  Frost Brokerage Services Inc |
|  Garden State Securities, Inc. |
|  **Geneos Wealth Management, Inc.** |
|  Glass Financial Advisors |
|  GLOBALINK SECURITIES, INC. |
|  Goldberg, Clouse & Edgell, LLC |
|  Goldman Sachs |
|  Gradient Securities, LLC |
|  Great America |
|  **Grove Point Investments** |
|  Guardian Wealth Strategies, LLC |
|  GWN Securities, Inc. |
|  Halley-Dodson Insurance |
|  Halliday Financial LLC |
|  **Hantz Financial Services,Inc.** |
|  HARBOR FINANCIAL SERVICES LLC |
|  Hazard & Siegel, Inc. |
|  Hilltop Securities Inc. |
|  Horan |
|  Horizon Financial Resources,LLC |
|  **Hornor, Townsend & Kent, Inc.** |
|  Hudson Valley Credit Union |
|  Hunter Insurance & Financial Services |
|  Huntleigh Securities |
|  IBN Financial Services, Inc. |

---

------

[Back to **Table of Contents**](#TOC_984)

---

| |
|:---|
|  iCapital |
|  Income & Asset Advisory |
|  Independence Capital Co. Inc |
|  **Independent Financial Grp, LLC** |
|  Infinity Wealth Management |
|  Innovation Partners |
|  Intervest |
|  Invesco |
|  **J.W. Cole Financial, Inc.** |
|  **J.P. Morgan** |
|  Jackson National Life |
|  **Janney Montgomery Scott, LLC.** |
|  Jennison Associates |
|  **Kestra Financial, Inc.** |
|  Key Investment Services LLC |
|  Kingswood Capital Management |
|  Kneeland Advisors |
|  Kovack Securities, Inc. |
|  Kress Financial |
|  Larson Financial Securities |
|  LaSalle St. Securities LLC |
|  LAX and Company |
|  Lebenthal Wealth Advisors, LLC |
|  Leigh Baldwin & Company, LLC |
|  LEXVO Wealth Mgmt |
|  Lifemark Corporation |
|  **Lincoln Investment Planning** |
|  **Lion Street** |
|  LM Kohn |
|  **LPL Financial Corporation** |
|  Lyons Bank |
|  **M Holdings Securities, Inc** |
|  M&T Securities |
|  Madison Advisors |
|  **Madison Avenue Securities** |
|  MAP Estate Planning |
|  Mehta & Associates |
|  **Mercer Allied Company L.P.** |
|  **Merrill Lynch** |
|  MFS Investment Management |
|  **MML Investors Services, Inc.** |
|  Moloney Securities |
|  Money Concepts Capital Corp. |
|  **Morgan Stanley Smith Barney** |
|  Morris Group |

---

---

| |
|:---|
|  Mutual of Omaha Insurance Company |
|  Mutual Securities, Inc |
|  NACK |
|  National Securities Corp. |
|  Nations Financial Group, Inc. |
|  Nationwide Planning Associates |
|  NBC Securities |
|  NBT Bank |
|  Neuberger Berman |
|  Newbridge Securities |
|  **Next Financial Group, Inc.** |
|  North Ridge Wealth Planning LLC |
|  North Star Consultants, Inc. |
|  Northeast Financial Network |
|  NORTHLAND SECURITIES INC |
|  NORTHWESTERN MUTUAL INVESTMENT SERVICES LLC |
|  O.N. Equity |
|  Oberlin Marketing Inc |
|  Octavia |
|  OMNI FINANCIAL SECURITIES |
|  **OneAmerica Securities, Inc.** |
|  ONESCO |
|  OPPENHEIMER & CO, INC. |
|  **Osaic Institutions** |
|  **OSAIC Wealth** |
|  Packerland Brokerage Svcs, Inc |
|  **Park Avenue Securities, LLC** |
|  **Parkland Securities** |
|  Peak Brokerage Services |
|  Pinnacle Investments, LLC |
|  Planmember Securities Corporation |
|  **PNC Investments, LLC** |
|  Premier Financial Network |
|  Premier Securities of America Inc. |
|  Prime Financial Services |
|  **Principal Securities, Inc.** |
|  Private Client Services, LLC |
|  Prospera Financial Services, Inc |
|  **Purshe Kaplan Sterling Investments** |
|  Q6 Advisors, Inc. |
|  Queen City |
|  Ranu Insurance Agency Inc |
|  **Raymond James Financial Svcs** |
|  **RBC CAPITAL MARKETS CORPORATION** |

---

---

| |
|:---|
|  Regal Securities, Inc. |
|  Regions Bank |
|  Regulus Financial Group |
|  Rehmann Financial |
|  Ridgewood Wealth Management LLC |
|  Riegel Financial |
|  RNR Securities, L.L.C. |
|  **Robert W. Baird & Co., Inc.** |
|  Rundahl Financial Consultants |
|  Sage Rutty & Co. Inc. |
|  Saltzman Associates |
|  Sanctuary Securities |
|  Saxony Securities, Inc. |
|  Scarborough Capital Management |
|  Securities Management & Research, Inc. |
|  **Sigma Financial Corporation** |
|  Signature Financial Group |
|  Silver Oak Securities Inc |
|  Skyline |
|  Steele Wealth Management, Inc. |
|  Step Stone Group |
|  **Stifel Nicolaus & Co.** |
|  **Stonex Securities** |
|  Strategic Fin Alliance Inc |
|  Strategic Wealth Management Group, LLC |
|  Strellner Financial Group |
|  Summit Financial Group |
| T. Rowe Price Group, Inc. |
|  **TFS Securities, Inc.** |
|  **The Investment Center** |
|  The Leaders Group |
|  The O.N. Equity Sales Co. |
|  The Tschetter Group |
|  The Windmill Group |
|  Tim Hall Financial Services |
|  Tompkins Bank |
|  Town & Country Wealth Management |
|  **TransAmerica Financial Advisors, Inc.** |
|  Travis Financial Services LLC |
|  TruChoice Financial |
|  TrueBlue Financial |
|  Truist Investment Services Inc. |
|  TRUSTMONT FINANCIAL GROUP, INC. |
|  Truvium Wealth Management, LLC |
|  **UBS Financial Services, Inc.** |

---

------

[Back to **Table of Contents**](#TOC_984)

---

| |
|:---|
|  **United Planners Fin. Serv.** |
|  **US Bank** |
|  **US Bank Advisors** |
|  USA Financial Securities Corp. |
|  VALIC FINANCIAL ADVISORS, INC. |
|  Valmark Securities |

---

---

| |
|:---|
|  Valued Capital Advisors |
|  Vanderbilt Securities Inc |
|  VANDERBILT SECURITIES LLC |
|  Vesta Wealth Advisors |
|  Vestech Securities, Inc. |
|  **VOYA Financial Advisors** |

---

---

| |
|:---|
|  Wellington Management |
|  **Wells Fargo Advisors LLC** |
|  **WELLS FARGO ADVISORS LLC - WEALTH** |
|  WesBanco Securities Inc. |
|  Western International Securities, Inc. |
|  Winslow Evans and Crocker |

---

You should note that Firms and individual registered representatives and branch managers with some Firms participating in one of these compensation arrangements might receive greater compensation for selling the Annuities than for selling a different annuity that is not eligible for these compensation arrangements. While compensation is generally taken into account as an expense in considering the charges applicable to an annuity product, any such compensation will be paid by us or PAD and will not result in any additional charge to you or to the Separate Account. Cash and non-cash compensation varies by annuity product, and such differing compensation could be a factor in which annuity a financial professional recommends to you. Your registered representative can provide you with more information about the compensation arrangements that apply upon request.

**MISSTATEMENT OF AGE OR SEX**

If there has been a misstatement of the age and/or sex of any person upon whose life annuity payments or the minimum death benefit is based, we make adjustments to conform to the facts. As to annuity payments: (a) any underpayments by us will be remedied on the next payment following correction; and (b) any overpayments by us will be charged against future amounts payable by us under your Annuity.

**FINANCIAL STATEMENTS**

The financial statements of Pruco Life Flexible Premium Variable Annuity Account are incorporated into this Statement of Additional Information by reference to the latest financial statements on [Form N-VPFS for the Pruco Life Flexible Premium Variable Annuity Account as filed with the SEC on April 20, 2026](https://www.sec.gov/Archives/edgar/data/947703/000094770326000062/a2025-96006prucolifeflexib.htm). The consolidated financial statements of Pruco Life Insurance Company are incorporated by reference to its annual report for the year ending December 31, 2025 on [Form 10-K as filed with the SEC on March 6, 2026](https://www.sec.gov/ix?doc=/Archives/edgar/data/777917/000077791726000036/cik777917-20251231.htm#i9dade617f85e4daa9e4cdb825f647996_238). Such financial statements have been audited by PricewaterhouseCoopers LLP ("PwC"), an independent registered public accounting firm. PwC's principal business address is 300 Madison Avenue, New York, NY 10017-6204.

PART C<br>333-162673; 333-288852<br>OTHER INFORMATION

ITEM 27. EXHIBITS:

---

| | |
|:---|:---|
| (a) | [Resolution of the Board of Directors of Pruco Life Insurance Company establishing the Pruco Life Flexible Premium Variable Annuity Account. Incorporated by reference to Form N-4, Registration No. 033-61125, filed July 19, 1995 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/0000950110-95-000514.txt) |
| (b) | Not Applicable. |
| (c)(1) | [Distribution and Principal Underwriting Agreement by and among Pruco Life Insurance Company (Depositor) and Prudential Annuities Distributors, Inc. "PAD" (Underwriter). Incorporated by reference to Post-Effective Amendment No. 1 to Registration No. 333-288855, filed August 5, 2025 on behalf of Pruco Life Insurance Company.](https://www.sec.gov/Archives/edgar/data/2077810/000207781025000029/prucolifedistributionandprin.htm) |
| (2) | [Specimen Affiliated Insurer Amendment to Selling Agreement. Incorporated by reference to Pre-Effective Amendment No. 1 to Registration No. 333-162673, filed February 4, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510021085/dex993b.txt) |
| (3) | [List of Broker Dealers selling under original Selling Agreement. Incorporated by reference to Post-Effective Amendment No. 1 to Registration No. 333-162673, filed April 19, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510085794/dex993b2.txt) |
| (4) | [List of Broker Dealers that executed Amendment to Selling Agreement. Incorporated by reference to Post-Effective Amendment No. 1 to Registration No. 333-162673, filed April 19, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510085794/dex993b3.txt) |
| (d)(1) | [Form of B, L, and X Base Contract P-BLX/IND (2/10) and Form of "C" Base Contract P-CR/IND (2/10) (including B, L, X & C schedule pages). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994a.txt) |
| (4)(2) | [Form of Beneficiary Annuity Schedules (including schedule pages for each X, L, B, and C (P-B-DCD-IND(2-10), P-L-DCDIND(2/10), (P-X-DCD-IND(2/10) and (P-C-DCD-IND (2/10). Incorporated by reference to Pre-Effective Amendment No. 1 to Registration No. 333-162673, filed February 4, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510021085/dex994a1.txt) |
| (3) | [Form of Medically Related Surrender Endorsement P-END-MRS (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994b.txt) |
| (4) | [Form of Medically Related Surrender Schedule Supplement P-SCH-MRS (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994c.txt) |
| (5) | [Form of Return of Adjusted Purchase Payments Death Benefit Rider P-RID-ROP (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994d.txt) |
| (6) | [Form of Return of Adjusted Purchase Payments Death Benefit Schedule Rider P-SCH-ROP (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994e.txt) |
| (7) | [Form of Market Value Adjustment Option Rider P-RID-MVA (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994f.txt) |
| (8) | [Form of Market Value Adjustment Option Rider Schedule Supplement P-SCH-MVA (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994g.txt) |
| (9) | [Form of Dollar Cost Averaging Program Rider P-RID-DCA (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994h.txt) |
| (10) | [Form of Dollar Cost Averaging Program Schedule Supplement P-SCH-DCA (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994i.txt) |
| (11) | [Form of Highest Anniversary Value Death Benefit Rider P-RID-HAV (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994j.txt) |
| (12) | [Form of Highest Anniversary Value Death Benefit Schedule Supplement P-SCH-HAV (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994k.txt) |
| (13) | [Form of Combination Death Benefit Rider P-RID-HAVROLL (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994l.txt) |
| (14) | [Form of Combination Death Benefit Schedule Supplement P-SCH-HAVROLL (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994m.txt) |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(15) [Form of Individual Retirement Annuity Endorsement P-END-IRA (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994n.txt)

(16) [Form of Roth Individual Retirement Annuity Endorsement P-END-ROTH (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994o.txt)

(17) [Form of Beneficiary Individual Retirement Annuity Endorsement P-END-IRABEN (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994p.txt)

(18) [Form of Beneficiary Roth Individual Retirement Annuity Endorsement P-END-ROTHBEN (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994q.txt)

(19) [Form of Highest Daily Lifetime 6 Plus Benefit Rider (P-RID-HD6-(02/10)). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994r.txt)

(20) [Form of Highest Daily Lifetime 6 Plus Schedule (P-SCH-HD6-(02/10)). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994s.txt)

(21) [Form of Highest Daily Lifetime 6 Plus with LIA Benefit Rider (P-RID-HD6-LIA-(02/10)). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994t.txt)

(22) [Form of Highest Daily Lifetime 6 Plus with LIA Schedule (P-SCH-HD6-LIA-(02/10)). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994u.txt)

(23) [Form of Highest Daily GRO II Benefit rider (P-RID-HD GRO-11/09). Incorporated by reference to Post-Effective Amendment No. 23 to Registration No. 333-130989, filed August 27, 2009 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509182839/dex994ao.txt)

(24) [Form of Highest Daily GRO II Benefit SCHEDULE (P-SCH-HD GRO-11/09). Incorporated by reference to Post-Effective Amendment No. 23 to Registration No. 333-130989, filed August 27, 2009 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509182839/dex994ap.txt)

(25) [Form of GRO Plus II benefit rider (P-RID-GRO (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994x.txt)

(26) [Form of GRO Plus II benefit schedule (P-SCH-GRO (02/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994y.txt)

(27) [Form of 403(b) Annuity Endorsement (P-END-403 (2/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994aa.txt)

(28) [Form of Beneficiary Annuity Endorsement P-ENDBENE (2/10). Incorporated by reference to Form N-4, Registration No. 333-162673, as filed October 26, 2009 on behalf of the Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312509213811/dex994bb.txt)

(29) [Form of Beneficiary Annuity Schedules (including schedule pages for each X, L, B, and C (P-B-DCD-INC(2/10), P-L-DCDIND(2/10), (P-X-DCD-IND92/10), and (P-C-DCD-IND(2/10)). Incorporated by reference to Pre-Effective Amendment No. 1 to Registration No. 333-162673, filed February 4, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510021085/dex994a1.txt)

(30) [Form of Affiliation Credit Endorsement P-END-ACE(2/10). Incorporated by reference to Post-Effective Amendment No. 1 to Registration No. 333-162673, filed April 16, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510085794/dex994ac.txt)

(31) [Form of Highest Daily GRO II Benefit Schedule Supplement (P-SCH-HDGRO(11/09)((8/10)). Incorporated by reference to Post-Effective Amendment No. 2 to Registration No. 333-162673, filed July 1, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000094770310000245/exhibit4.htm)

(32) [Highest Daily Lifetime Income Benefit Rider P-RID-HD(1/11). Incorporated by reference to Post-Effective Amendment No. 5 to Registration No. 333-162673, filed December 20, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510284612/dex994ae.txt)

(33) [Highest Daily Lifetime Income Benefit Schedule Supplement P-SCH-HD (1/11). Incorporated by reference to Post-Effective Amendment No. 5 to Registration No. 333-162673, filed December 20, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510284612/dex99aaf.txt)

(34) [Highest Daily Lifetime Income with Lifetime Income Accelerator Benefit Rider P-RID-HD-LIA(1/11). Incorporated by reference to Post-Effective Amendment No. 5 to Registration No. 333-162673, filed December 20, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510284612/dex994ag.txt)

(35) [Highest Daily Lifetime Income with Lifetime Income Accelerator Benefit Schedule Supplement P-SCH-HD-LIA(1/11). Incorporated by reference to Post-Effective Amendment No. 5 to Registration No. 333-162673, filed December 20, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510284612/dex994ah.txt)

(36) [Form of Highest Daily Lifetime Income Benefit 2.0 rider (P-RID-HD-7-12). Incorporated by reference to Post-Effective Amendment No. 13 to Registration No. 333-162673, filed August 1, 2012 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312512326392/d338890dex99b4ai.txt)

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| (37) | [Form of Highest Daily Lifetime Income Benefit 2.0 schedule (P-SCH-HD-7-12). Incorporated by reference to Post-Effective Amendment No. 13 to Registration No. 333-162673, filed August 1, 2012 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312512326392/d338890dex99b4aj.txt) |
| (38) | [Form of Highest Daily Lifetime Income Benefit 2.0 with LIA rider (P-RID-HD-LIA-7-12). Incorporated by reference to Post-Effective Amendment No. 13 to Registration No. 333-162673, filed August 1, 2012 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312512326392/d338890dex99b4ak.txt) |
| (39) | [Form of Highest Daily Lifetime Income Benefit 2.0 with LIA schedule (P-SCH-HD-LIA-7-12). Incorporated by reference to Post-Effective Amendment No. 13 to Registration No. 333-162673, filed August 1, 2012 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312512326392/d338890dex99b4al.txt) |
| (40) | [Form of Highest Daily Lifetime Income Benefit 2.0 with HDDB rider (P-RID-HD-HDB-7-12). Incorporated by reference to Post- Effective Amendment No. 13 to Registration No. 333-162673, filed August 1, 2012 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312512326392/d338890dex99b4am.txt) |
| (41) | [Form of Highest Daily Lifetime Income Benefit 2.0 with HDDB schedule (P-SCH-HD-HDB-7-12). Incorporated by reference to Post-Effective Amendment No. 13 to Registration No. 333-162673, filed August 1, 2012 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312512326392/d338890dex99b4an.txt) |
| (42) | [Form of Highest Daily Lifetime Income Benefit v2.1 rider P-RID-HD(2-13) (includes schedule pages). Incorporated by reference to Post-Effective Amendment No. 17 to Registration No. 333-162673, filed February 13, 2013 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312513056321/d465275dex994ao.txt) |
| (43) | [Form of Highest Daily Lifetime Income Benefit v2.1 w/HDDB rider P-RID-HD-HDB(2-13) (includes schedule pages). Incorporated by reference to Post-Effective Amendment No. 17 to Registration No. 333-162673, filed February 13, 2013 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312513056321/d465275dex994ap.txt) |
| (44) | [Amendatory Tax Endorsement. Incorporated by reference to Post-Effective Amendment No. 18 to Registration No. 333-162673, filed April 12, 2013 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312513153369/d451776dex99b4aq.txt) |
| (e)(1) | [Application form for the Contract P-VAA (02/10). Incorporated by reference to Pre-Effective Amendment No. 1 to Registration No. 333-162673, filed February 4, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510021085/dex995a.txt) |
| (2) | [Form of Application form for the Contract P-IBVAA (02/10). Incorporated by reference to Pre-Effective Amendment No. 1 to Registration No. 333-162673, filed February 4, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510021085/dex995b.txt) |
| (3) | [Form of Application for the Contract ORD202826 Rev (7/12). Incorporated by reference to Post-Effective Amendment No. 13 to Registration No. 333-162673, filed August 1, 2012 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312512326392/d338890dex99b5c.txt) |
| (4) | [Form of Applications for the Contract ORD202826 Rev (2/13) and Beneficiary Contract ORD202828 Rev (2/13). Incorporated by reference to Post-Effective Amendment No. 17 to Registration No. 333-162673, filed February 13, 2013 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312513056321/d465275dex995d.htm) |
| (f)(1) | [Articles of Incorporation of Pruco Life Insurance Company, as amended through October 19, 1993. Incorporated by reference to Post-Effective Amendment No. 40 to Registration Statement 002-89558, filed April 21, 2009, on behalf of the Pruco Life Variable Appreciable Account.](https://www.sec.gov/Archives/edgar/data/740870/000074087009000017/articlesincorporation.htm) |
| (2) | [By-laws of Pruco Life Insurance Company, as amended through May 6, 1997. Incorporated by reference to Registration Statement 002-89558, filed April 21, 2009 on behalf of the Pruco Life Variable Appreciable Account.](https://www.sec.gov/Archives/edgar/data/740870/000074087009000017/bylaws-pl.htm) |
| (g)(1) | [Coinsurance Agreement for HD6+. Incorporated by reference to Post-Effective Amendment No. 25, Form N-4, Registration Statement No. 333-130989, filed April 16, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510085384/dex997g.txt) |
| (2) | [Pruco Reinsurance Ltd. for HDI benefit filed via EDGAR with Pre-Effective Amendment No. 1 to Registration Statement No. 333-170466 filed April 1, 2011.](https://www.sec.gov/Archives/edgar/data/947703/000119312511086987/dex997.txt) |
| (3) | [Coinsurance Agreement for HD1 2.0. Incorporated by reference to Post-Effective Amendment No. 18 to Registration No. 333-162673, filed April 12, 2013 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312513153369/d451776dex99b7c.txt) |
| (h)(1) | [AST Fund Participation Agreement dated May 1, 2005, as amended and restated June 8, 2005, by and among Pruco Life Insurance Company, American Skandia Trust, American Skandia Investment Services, Inc., Prudential Investments LLC, American Skandia Marketing, Inc. and Prudential Investment Management Services LLC. Incorporated by reference to Pre-Effective Amendment No. 1 to Registration No. 333-162673, filed February 4, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510021085/dex998a.txt) |
| (2) | [Copy of Franklin Templeton Fund Participation Agreement. Incorporated by reference to Pre-Effective Amendment No. 1 to Registration No. 333-162673, filed February 4, 2010 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312510021085/dex998b.txt) |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(3) [Shareholder Information Agreement (Sample Rule 22C-2). Incorporated by reference to Post-Effective Amendment No. 3 to Registration No. 333-130989, filed April 19, 2007 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312507085292/dex998b.txt)

(4) [Amendment effective as of February 25, 2013 to Fund Participation Agreement between Advanced Series Trust, Prudential Investments LLC, AST Investment Services, Inc., Prudential Annuities Distributors, Inc., Prudential Investment Management Services LLC and Pruco Life Insurance Company. Incorporated by reference to Post-Effective Amendment No. 18 to Registration No. 333-162673, filed April 12, 2013 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000119312513153369/d451776dex99b8d.txt)

(5) [Fund Participation Agreement dated May 1, 2005, by and among Pruco Life Insurance Company, The Prudential Series Fund, Inc., Prudential Investments LLC, and Prudential Investment Management Services LLC. Incorporated by reference to Post-Effective Amendment No. 27 to Registration No. 333-162673, filed April 5, 2018 on behalf of Pruco Life Flexible Premium Variable Annuity Account.](https://www.sec.gov/Archives/edgar/data/947703/000094770318000096/ex8e-psfxprucoxlife.htm)

(i) Not
 Applicable.

(j) Not
 Applicable.

(k) [Opinion of Counsel. Filed Herewith.](xbrc-efp23784_ex99k.htm)

(l) [Written Consent of Independent Registered Public Accounting Firm. Filed Herewith.](xbrc-efp23784_ex99l.htm)

(m) Not
 Applicable.

(n) Not
 Applicable.

(o) Not
 Applicable.

(p) [Powers of Attorney: Reshma V. Abraham, Markus Coombs,  Alan M. Finkelstein, Scott E. Gaul, Bradley O. Harris, and Salene Hitchcock-Gear. Filed Herewith.](xbrc-efp23784_ex99p.htm)

(q) Not
 Applicable.

(r) Not
 Applicable.

------

ITEM 28. DIRECTORS AND OFFICERS OF THE INSURANCE COMPANY:

---

| | |
|:---|:---|
| **NAME AND PRINCIPAL BUSINESS ADDRESS** | **POSITION AND OFFICES WITH INSURANCE COMPANY** |
| Reshma V. Abraham<br>213 Washington Street<br>Newark, New Jersey 07102 | Director and Vice President |
| Markus Coombs<br>655 Broad Street<br>Newark, New Jersey 07102 | Director, Chief Accounting Officer, Chief Financial Officer, and Vice President |
| Alan M. Finkelstein<br>751 Broad Street<br>Newark, New Jersey 07102 | Director and Treasurer |
| Scott E. Gaul<br>One Corporate Drive<br>Shelton, Connecticut 06484 | Director, President and Chief Executive Officer |
| Bradley O. Harris<br>751 Broad Street<br>Newark, New Jersey 07102 | Director |
| Salene Hitchcock-Gear<br>213 Washington Street<br>Newark, New Jersey 07102 | Director |
| Daniel T. McNulty<br>600 Office Center Drive, Apex Office Park<br>Fort Washington, Pennsylvania 19034 | Chief Compliance Officer, Variable Life & Variable Annuities Registered Separate Accounts |
| Karen M. Sills<br>280 Trumbull Street<br>Hartford, Connecticut 06103 | Chief Legal Officer, Vice President and Secretary |
| Matthew Silver<br>213 Washington Street<br>Newark, New Jersey 07102 | Chief Actuary and Senior Vice President |

---

ITEM 29. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE INSURANCE COMPANY OR THE REGISTERED SEPARATE ACCOUNT:

The Registered Separate Account may be deemed to be under common control (or where indicated, identical to) the following separate accounts that are sponsored either by Pruco Life Insurance Company ("Pruco Life") or an insurer that is an affiliate of Pruco Life: The Prudential Discovery Premier Group Variable Contract Account, The Prudential Variable Appreciable Account, The Prudential Individual Variable Contract Account, The Prudential Variable Contract Account GI-2, The Prudential Qualified Individual Variable Contract Account, The Prudential Variable Contract Account-24, The Prudential Discovery Select Group Variable Annuity Contract Account (separate accounts of Prudential); the Pruco Life Flexible Premium Variable Annuity Account; the Pruco Life PRUvider Variable Appreciable Account; the Pruco Life Variable Universal Account, the Pruco Life Variable Insurance Account, the Pruco Life Variable Appreciable Account, the Pruco Life Single Premium Variable Life Account, the Pruco Life Single Premium Variable Annuity Account (separate accounts of Pruco Life); the Pruco Life of New Jersey Flexible Premium Variable Annuity Account; the Pruco Life of New Jersey Variable Insurance Account, the Pruco Life of New Jersey Variable Appreciable Account, the Pruco Life of New Jersey Single Premium Variable Life Account, and the Pruco Life of New Jersey Single Premium Variable Annuity Account (separate accounts of Pruco Life Insurance Company of New Jersey ("Pruco Life of New Jersey")). Pruco Life, a life insurance company organized under the laws of Arizona, is a direct wholly-owned subsidiary of The Prudential Insurance Company of America and an indirect wholly-owned subsidiary of Prudential Financial, Inc. Pruco Life of New Jersey, a life insurance company organized under the laws of New Jersey, is a direct wholly-owned subsidiary of Pruco Life, and an indirect wholly-owned subsidiary of Prudential Financial, Inc.

The subsidiaries of Prudential Financial Inc. ("PFI") are listed under [<u>Exhibit 21.1 of the Annual Report on Form 10-K of PFI (Registration No.</u> <u>001-16707), filed on February 12, 2026</u>](https://www.sec.gov/Archives/edgar/data/1137774/000113777426000048/pru-20251231x10kxexh211.htm), the text of which is hereby incorporated by reference. In addition to those subsidiaries, Prudential holds all of the voting securities of Prudential's Gibraltar Fund, Inc., a Maryland corporation, in three of its separate accounts. Prudential's Gibraltar Fund, Inc. is registered as an open-end, diversified, management investment company under the Investment Company Act of 1940 (the "Act"). The separate accounts listed above are registered as unit investment trusts under the Act. The Registered Separate Account may also be deemed to be under common control with The Prudential Variable Contract Account-2, The Prudential Variable Contract Account-10, and The Prudential Variable Account Contract Account-11, (separate accounts of The Prudential Insurance Company of America which are registered as open-end, diversified management investment companies).

ITEM 30. INDEMNIFICATION:

Pruco Life Insurance Company ("Pruco Life"), in conjunction with certain of its affiliates, maintains insurance on behalf of any person who is or was a trustee, director, officer, employee, or agent of Pruco Life, or who is or was serving at the request of Pruco Life as a trustee, director, officer,

------

employee or agent of such other affiliated trust or corporation, against any liability asserted against and incurred by him or her arising out of his or her position with such trust or corporation.

Arizona, the state of organization of Pruco Life, permits entities organized under its jurisdiction to indemnify directors and officers with certain limitations. The relevant provisions of Arizona law permitting indemnification can be found in Section 10-850 et. seq. of the Arizona Statutes Annotated. The text of Pruco Life's By-law, Article VIII, which relates to indemnification of officers and directors, is incorporated by reference to [Exhibit 3(ii) to its form 10-Q filed August 15, 1997](https://www.sec.gov/Archives/edgar/data/777917/0000950110-97-001300.txt).

Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended (the "Securities Act") may be permitted to directors, officers and controlling persons of Pruco Life pursuant to the foregoing provisions or otherwise, Pruco Life has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by Pruco Life of expenses incurred or paid by a director, officer or controlling person of Pruco Life in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, Pruco Life will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

ITEM 31. PRINCIPAL UNDERWRITERS:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Prudential Annuities Distributors, Inc. (PAD)

PAD serves as principal underwriter for variable annuities issued by various insurance companies. The separate accounts of those insurance companies, through which the bulk of the variable annuities are issued, are the Pruco Life Flexible Premium Variable Annuity Account, the Pruco Life of New Jersey Flexible Premium Variable Annuity Account, The Prudential Qualified Individual Variable Contract Account, The Prudential Individual Variable Contract Account, Prudential's Annuity Plan Account, Prudential's Investment Plan Account, and Prudential's Annuity Plan Account-2. In addition, PAD serves as principal underwriter for variable annuities issued by Fortitude Life Insurance & Annuity Company and its Fortitude Life Insurance & Annuity Company Variable Account B.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Information concerning the directors and officers of PAD is set forth below:

---

| | |
|:---|:---|
| **NAME** | **POSITIONS AND OFFICES WITH UNDERWRITER** |
| Suzanne Amari<br>One Corporate Drive<br>Shelton, Connecticut 06484 | Director |
| Kevin M. Brayton<br>280 Trumbull Street<br>Hartford, Connecticut 06103 | Senior Vice President and Director |
| Tracey Carroll<br>One Corporate Drive<br>Shelton, Connecticut 06484 | President and Director |
| Jessica Conley<br>600 Office Center Drive<br>Apex Office Park<br>Fort Washington, Pennsylvania 19034 | Vice President |
| Markus Coombs<br>655 Broad Street<br>Newark, New Jersey 07102 | Director |
| Tiffany Khan<br>751 Broad Street<br>Newark, New Jersey 07102 | Anti-Money Laundering Officer |
| Scott P. Haggerty<br>One Corporate Drive<br>Shelton, Connecticut 06484 | Chairman, Chief Executive Officer and Director |
| Donald Mallavia<br>One Corporate Drive<br>Shelton, Connecticut 06484 | Director |
| Shane T. McGrath<br>One Corporate Drive<br>Shelton, Connecticut 06484 | Chief Compliance Officer and Vice President |
| Frank Papasavas<br>655 Broad Street<br>Newark, New Jersey 07102 | Treasurer |

---

------

---

| | |
|:---|:---|
| **NAME** | **POSITIONS AND OFFICES WITH UNDERWRITER**  |
| Robert P. Smit<br>751 Broad Street<br>Newark, New Jersey 07102 | Chief Financial Officer and Controller |
| Jordan Thomsen<br>751 Broad Street<br>Newark, New Jersey 07102 | Chief Legal Officer and Secretary |

---

&nbsp;&nbsp;&nbsp;&nbsp;(c) Commissions received by PAD during 2025 with respect to all individual annuities issued by Pruco Life.

---

| | | | | |
|:---|:---|:---|:---|:---|
| NAME OF PRINCIPAL UNDERWRITER | NET UNDERWRITING<br>DISCOUNTS AND<br>COMMISSIONS | COMPENSATION ON<br>REDEMPTION | BROKERAGE<br>COMMISSIONS | COMPENSATION |
| Prudential Annuities Distributors, Inc.\* | $692004270 | $-0- | $-0- | $-0- |

---

\* PAD did not retain any of these commissions.

ITEM 31A. INFORMATION ABOUT CONTRACTS WITH INDEX-LINKED OPTIONS AND FIXED OPTIONS SUBJECT TO A CONTRACT ADJUSTMENT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of December 31, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name of the Contract** | **Number of** **Contracts** **Outstanding** | **Total Value** **Attributable to** **the** **Index-Linked** **Option and/or** **Fixed Option** **subject to an** **Adjustment** | **Number of** **Contracts Sold** **During the Prior** **Calendar Year** | **Gross** **Premiums** **Received** **During the Prior** **Calendar Year** | **Amount of Contract** **Value Redeemed** **During the Prior** **Calendar Year** | **Combination** **Contract** |
|  Prudential Premier Retirement Variable Annuity X Series (Applicable to contracts with applications signed from 03/15/2010 – 02/24/ 2013) | 46052 | $108543.00 | 0 | $414367.00 | $-1018738950.00 | Yes |
|  Prudential Premier Retirement Variable Annuity B Series (Applicable to contracts with applications signed from 03/15/2010 – 02/24/ 2013) | 90884 | $165211.00 | 0 | $1736026.00 | $-2069504961.00 | Yes |
|  Prudential Premier Retirement Variable Annuity L Series (Applicable to contracts with applications signed from 03/15/2010 – 02/24/ 2013) | 62722 | $5369.00 | 0 | $780264.00 | $-1148667971.00 | Yes |
|  Prudential Premier Retirement Variable Annuity C Series (Applicable to contracts with applications signed from 03/15/2010 – 02/24/ 2013) | 5351 | $0.00 | 0 | $213076.00 | $-81813944.00 | Yes |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not Applicable.

ITEM 32. LOCATION OF ACCOUNTS AND RECORDS:

Provided in the Registered Separate Account's most recent report on Form N-CEN.

ITEM 33. MANAGEMENT SERVICES:

None.

ITEM 34. FEE REPRESENTATION AND UNDERTAKINGS:

With regard to the offering of the Variable Options, the Company hereby represents that the fees and charges deducted under the contracts described in this registration statement, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the Company.

With regard to the offering of the Market Value Adjustment Options under this registration statement, the Company undertakes:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(1) To
 file, during any period in which offers or sales are being made, a post-effective amendment to the registration statement to include any prospectus required
 by section 10(a)(3) of the Securities Act; and

(2) That,
 for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement
 relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona
 fide offering thereof.

------

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this registration statement under rule 485(b) under the Securities Act and has duly caused this registration statement to be signed on its behalf by the undersigned, duly authorized, in the City of Newark and State of New Jersey on this 20th day of April 2026.

---

| | |
|:---|:---|
| PRUCO LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT<br>(REGISTERED SEPARATE ACCOUNT) | PRUCO LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT<br>(REGISTERED SEPARATE ACCOUNT) |
| By: | Scott E. Gaul\* |
|  | Scott E. Gaul<br>President and Chief Executive Officer |
| PRUCO LIFE INSURANCE COMPANY<br>(INSURANCE COMPANY) | PRUCO LIFE INSURANCE COMPANY<br>(INSURANCE COMPANY) |
| By: | Scott E. Gaul\* |
|  | Scott E. Gaul<br>President and Chief Executive Officer |

---

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the date indicated.

---

| | | |
|:---|:---|:---|
|  SIGNATURE | TITLE |  |
|  Reshma V. Abraham\*<br> Reshma V. Abraham | Director and Vice President | April 20, 2026 |
|  Markus Coombs\*<br> Markus Coombs | Chief Financial Officer, Chief Accounting Officer, Vice President and Director | April 20, 2026 |
|  Alan M. Finkelstein\*<br> Alan M. Finkelstein | Director and Treasurer | April 20, 2026 |
|  Scott E. Gaul\*<br> Scott E. Gaul | Director, President and Chief Executive Officer | April 20, 2026 |
|  Bradley O. Harris\*<br> Bradley O. Harris | Director | April 20, 2026 |
|  Salene Hitchcock-Gear\*<br> Salene Hitchcock-Gear | Director | April 20, 2026 |

---

---

| | |
|:---|:---|
| By: | /s/ Elizabeth L. Gioia |
|  | Elizabeth L. Gioia |

---

\* Executed by Elizabeth L. Gioia on behalf of those indicated pursuant to Power of Attorney.

## Ex-99.(K)

---

| |
|:---|
| <br>**Elizabeth L. Gioia**<br> Vice President, Corporate Counsel |
| **The Prudential Insurance Company of America**<br> 751 Broad Street, Newark, NJ 07102-3777<br> Tel 203 402-1624<br> elizabeth.gioia@prudential.com |

---

April 20, 2026

**VIA EDGAR**

Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549

---

| | |
|:---|:---|
| **Re:** | **Pruco Life Insurance Company** |
|  | **Pruco Life Flexible Premium Variable Annuity Account** |
|  | **Post-Effective Amendments to Registration Statements on Form N-4** |
|  | **File Nos. 333-288852; 333-162673 and 811-07325** |

---

Members of the Commission:

I have acted as counsel to Pruco Life Insurance Company (the "Company"), in connection with the filing of Post-Effective Amendments to the above-referenced Registration Statements on Form N-4 under the Securities Act of 1933. Such registration statements relate to the contracts, riders, and endorsements (collectively, the "Contracts") for the variable annuity contracts to be sold through certain selling broker-dealers and the related Market Value Adjusted Fixed Allocation investment options.

I have examined or caused to be examined such documents and reviewed or caused to be reviewed such questions of law as I considered necessary and appropriate for the purpose of rendering this opinion. In particular, I have reviewed the establishment of the Pruco Life Modified Guaranteed Annuity Account (the "Guaranteed Account") by the Board of Directors of the Company as a non-unitized separate account for assets applicable to certain market value adjustment annuity contracts and the establishment and continued existence of the Pruco Life Flexible Premium Variable Annuity Account (the "Variable Separate Account"). On the basis of such examination and review, it is my opinion that:

(1) the Company is a corporation duly organized and validly existing as a stock life insurance company under the laws of the State of Arizona and is duly authorized by the Insurance Department of that state to issue the Contracts;

(2) the Guaranteed Account has been duly created and is a validly existing as a non-unitized separate account pursuant to the provisions of the State of Arizona law;

(3) the Variable Separate Account is a duly authorized and existing separate account established pursuant to the provisions of applicable state law;

(4) the Contracts, when issued in accordance with the Registration Statements on Form N-4, will constitute legal, validly-issued and binding obligations of the Company; and

(5) to the extent so provided under the Contracts, that portion of the assets of the Variable Separate Account equal to the reserves and other contract liabilities with respect to the separate account will not be chargeable with liabilities arising out of any other business that the Company may conduct.

I hereby consent to the filing of this opinion as an exhibit to the Registration Statements.

Very truly yours,

/s/ Elizabeth L. Gioia

Elizabeth L. Gioia

Vice President, Corporate Counsel

## Ex-99.(L)

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in this Post-Effective Amendment No. 1 to the Registration Statement on Form N-4 (No. 333-288852) (the "Registration Statement") of our report dated March 6, 2026 relating to the consolidated financial statements of Pruco Life Insurance Company and consent to the incorporation by reference in the Registration Statement of our report dated April 20, 2026 relating to the financial statements of each of the subaccounts of Pruco Life Flexible Premium Variable Annuity Account indicated in our report. We also consent to the reference to us under the heading "Financial Statements" in such Registration Statement.

/s/ PricewaterhouseCoopers LLP

New York, New York

April 20, 2026

## Ex-99.(P)

**<u>POWER OF ATTORNEY</u>**

The undersigned, being a director or officer of Pruco Life Insurance Company ("Pruco Life"), constitutes and appoints Elizabeth L. Gioia, Richard H. Kirk, Ida Colon-Perez and Douglas E. Scully, and each of them severally, his or her true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his or her name, place and stead, in any and all capacities, and to do any and all things and execute any and all instruments that such attorneys-in-fact may deem necessary or advisable under any rules, regulations and requirements of the U.S. Securities and Exchange Commission, in connection with where applicable: Registration statements of the appropriate forms prescribed by the Securities and Exchange Commission, and any other periodic documents and reports required under the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all amendments thereto executed on behalf of Pruco Life filed with the Securities and Exchange Commission for the Registrations listed below:

**Pruco Life Insurance Company:**

ActiveIncome 333-283684 FlexGuard 2.0 333-288504 <br> ActiveIncome - Franklin Templeton 333-290153 FlexGuard Income 2.0 333-288505 <br> ActiveIncome – LPL 333-293964

**Pruco Life Insurance Company (RILA/MVA):**

---

| | | |
|:---|:---|:---|
| 333-288845 | 333-288852 | 333-288859 |
| 333-288846 | 333-288853 | 333-288860 |
| 333-288847 | 333-288855 | 333-288861 |
| 333-288848 | 333-288856 | 333-288862 |
| 333-288849 | 333-288857 | 333-288864 |
| 333-288851 | 333-288858 | 333-288865 |

---

**Pruco Life Flexible Premium Variable Annuity Account (811-07325):**

---

| | | |
|:---|:---|:---|
| 333-06701 | 333-37728 | 333-130989 |
| 333-162673 | 333-162680 | 333-170466 |
| 333-184541 | 333-184887 | 333-184888 |
| 333-184890 | 333-192701 | 333-230983 |
| 333-256965 | 333-256966 | 333-267463 |

---

IN WITNESS WHEREOF, I have hereunto set my hand on March 20, 2026.

---

| |
|:---|
| /s/ Reshma V. Abraham |
| Reshma V. Abraham |
| Director and Vice President |

---

**<u>POWER OF ATTORNEY</u>**

The undersigned, being a director or officer of Pruco Life Insurance Company ("Pruco Life"), constitutes and appoints Elizabeth L. Gioia, Richard H. Kirk, Ida Colon-Perez and Douglas E. Scully, and each of them severally, his or her true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his or her name, place and stead, in any and all capacities, and to do any and all things and execute any and all instruments that such attorneys-in-fact may deem necessary or advisable under any rules, regulations and requirements of the U.S. Securities and Exchange Commission, in connection with where applicable: Registration statements of the appropriate forms prescribed by the Securities and Exchange Commission, and any other periodic documents and reports required under the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all amendments thereto executed on behalf of Pruco Life filed with the Securities and Exchange Commission for the Registrations listed below:

**Pruco Life Insurance Company:**

ActiveIncome 333-283684 FlexGuard 2.0 333-288504 <br> ActiveIncome - Franklin Templeton 333-290153 FlexGuard Income 2.0 333-288505 <br> ActiveIncome – LPL 333-293964

**Pruco Life Insurance Company (RILA/MVA):**

---

| | | |
|:---|:---|:---|
| 333-288845 | 333-288852 | 333-288859 |
| 333-288846 | 333-288853 | 333-288860 |
| 333-288847 | 333-288855 | 333-288861 |
| 333-288848 | 333-288856 | 333-288862 |
| 333-288849 | 333-288857 | 333-288864 |
| 333-288851 | 333-288858 | 333-288865 |

---

**Pruco Life Flexible Premium Variable Annuity Account (811-07325):**

---

| | | |
|:---|:---|:---|
| 333-06701 | 333-37728 | 333-130989 |
| 333-162673 | 333-162680 | 333-170466 |
| 333-184541 | 333-184887 | 333-184888 |
| 333-184890 | 333-192701 | 333-230983 |
| 333-256965 | 333-256966 | 333-267463 |

---

IN WITNESS WHEREOF, I have hereunto set my hand on March 20, 2026.

---

| |
|:---|
| /s/ Markus Coombs |
| Markus Coombs |
| Director, Chief Financial Officer, |
| Chief Accounting Officer and Vice President |

---

**<u>POWER OF ATTORNEY</u>**

The undersigned, being a director or officer of Pruco Life Insurance Company ("Pruco Life"), constitutes and appoints Elizabeth L. Gioia, Richard H. Kirk, Ida Colon-Perez and Douglas E. Scully, and each of them severally, his or her true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his or her name, place and stead, in any and all capacities, and to do any and all things and execute any and all instruments that such attorneys-in-fact may deem necessary or advisable under any rules, regulations and requirements of the U.S. Securities and Exchange Commission, in connection with where applicable: Registration statements of the appropriate forms prescribed by the Securities and Exchange Commission, and any other periodic documents and reports required under the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all amendments thereto executed on behalf of Pruco Life filed with the Securities and Exchange Commission for the Registrations listed below:

**Pruco Life Insurance Company:**

ActiveIncome 333-283684 FlexGuard 2.0 333-288504 <br> ActiveIncome - Franklin Templeton 333-290153 FlexGuard Income 2.0 333-288505 <br> ActiveIncome – LPL 333-293964

**Pruco Life Insurance Company (RILA/MVA):**

---

| | | |
|:---|:---|:---|
| 333-288845 | 333-288852 | 333-288859 |
| 333-288846 | 333-288853 | 333-288860 |
| 333-288847 | 333-288855 | 333-288861 |
| 333-288848 | 333-288856 | 333-288862 |
| 333-288849 | 333-288857 | 333-288864 |
| 333-288851 | 333-288858 | 333-288865 |

---

**Pruco Life Flexible Premium Variable Annuity Account (811-07325):**

---

| | | |
|:---|:---|:---|
| 333-06701 | 333-37728 | 333-130989 |
| 333-162673 | 333-162680 | 333-170466 |
| 333-184541 | 333-184887 | 333-184888 |
| 333-184890 | 333-192701 | 333-230983 |
| 333-256965 | 333-256966 | 333-267463 |

---

IN WITNESS WHEREOF, I have hereunto set my hand on March 27, 2026.

---

| |
|:---|
| /s/ Alan M. Finkelstein |
| Alan M. Finkelstein |
| Director and Treasurer |

---

**<u>POWER OF ATTORNEY</u>**

The undersigned, being a director or officer of Pruco Life Insurance Company ("Pruco Life"), constitutes and appoints Elizabeth L. Gioia, Richard H. Kirk, Ida Colon-Perez and Douglas E. Scully, and each of them severally, his or her true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his or her name, place and stead, in any and all capacities, and to do any and all things and execute any and all instruments that such attorneys-in-fact may deem necessary or advisable under any rules, regulations and requirements of the U.S. Securities and Exchange Commission, in connection with where applicable: Registration statements of the appropriate forms prescribed by the Securities and Exchange Commission, and any other periodic documents and reports required under the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all amendments thereto executed on behalf of Pruco Life filed with the Securities and Exchange Commission for the Registrations listed below:

**Pruco Life Insurance Company:**

ActiveIncome 333-283684 FlexGuard 2.0 333-288504 <br> ActiveIncome - Franklin Templeton 333-290153 FlexGuard Income 2.0 333-288505 <br> ActiveIncome – LPL 333-293964

**Pruco Life Insurance Company (RILA/MVA):**

---

| | | |
|:---|:---|:---|
| 333-288845 | 333-288852 | 333-288859 |
| 333-288846 | 333-288853 | 333-288860 |
| 333-288847 | 333-288855 | 333-288861 |
| 333-288848 | 333-288856 | 333-288862 |
| 333-288849 | 333-288857 | 333-288864 |
| 333-288851 | 333-288858 | 333-288865 |

---

**Pruco Life Flexible Premium Variable Annuity Account (811-07325):**

---

| | | |
|:---|:---|:---|
| 333-06701 | 333-37728 | 333-130989 |
| 333-162673 | 333-162680 | 333-170466 |
| 333-184541 | 333-184887 | 333-184888 |
| 333-184890 | 333-192701 | 333-230983 |
| 333-256965 | 333-256966 | 333-267463 |

---

IN WITNESS WHEREOF, I have hereunto set my hand on March 20, 2026.

---

| |
|:---|
| /s/ Scott E. Gaul |
| Scott E. Gaul |
| Director, President and Chief Executive Officer |

---

**<u>POWER OF ATTORNEY</u>**

The undersigned, being a director or officer of Pruco Life Insurance Company ("Pruco Life"), constitutes and appoints Elizabeth L. Gioia, Richard H. Kirk, Ida Colon-Perez and Douglas E. Scully, and each of them severally, his or her true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his or her name, place and stead, in any and all capacities, and to do any and all things and execute any and all instruments that such attorneys-in-fact may deem necessary or advisable under any rules, regulations and requirements of the U.S. Securities and Exchange Commission, in connection with where applicable: Registration statements of the appropriate forms prescribed by the Securities and Exchange Commission, and any other periodic documents and reports required under the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all amendments thereto executed on behalf of Pruco Life filed with the Securities and Exchange Commission for the Registrations listed below:

**Pruco Life Insurance Company:**

ActiveIncome 333-283684 FlexGuard 2.0 333-288504 <br> ActiveIncome - Franklin Templeton 333-290153 FlexGuard Income 2.0 333-288505 <br> ActiveIncome – LPL 333-293964

**Pruco Life Insurance Company (RILA/MVA):**

---

| | | |
|:---|:---|:---|
| 333-288845 | 333-288852 | 333-288859 |
| 333-288846 | 333-288853 | 333-288860 |
| 333-288847 | 333-288855 | 333-288861 |
| 333-288848 | 333-288856 | 333-288862 |
| 333-288849 | 333-288857 | 333-288864 |
| 333-288851 | 333-288858 | 333-288865 |

---

**Pruco Life Flexible Premium Variable Annuity Account (811-07325):**

---

| | | |
|:---|:---|:---|
| 333-06701 | 333-37728 | 333-130989 |
| 333-162673 | 333-162680 | 333-170466 |
| 333-184541 | 333-184887 | 333-184888 |
| 333-184890 | 333-192701 | 333-230983 |
| 333-256965 | 333-256966 | 333-267463 |

---

IN WITNESS WHEREOF, I have hereunto set my hand on March 25, 2026.

---

| |
|:---|
| /s/ Bradley O. Harris |
| Bradley O. Harris |
| Director |

---

**<u>POWER OF ATTORNEY</u>**

The undersigned, being a director or officer of Pruco Life Insurance Company ("Pruco Life"), constitutes and appoints Elizabeth L. Gioia, Richard H. Kirk, Ida Colon-Perez and Douglas E. Scully, and each of them severally, his or her true and lawful attorney-in-fact with power of substitution and resubstitution to sign in his or her name, place and stead, in any and all capacities, and to do any and all things and execute any and all instruments that such attorneys-in-fact may deem necessary or advisable under any rules, regulations and requirements of the U.S. Securities and Exchange Commission, in connection with where applicable: Registration statements of the appropriate forms prescribed by the Securities and Exchange Commission, and any other periodic documents and reports required under the Investment Company Act of 1940, as amended, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all amendments thereto executed on behalf of Pruco Life filed with the Securities and Exchange Commission for the Registrations listed below:

**Pruco Life Insurance Company:**

ActiveIncome 333-283684 FlexGuard 2.0 333-288504 <br> ActiveIncome - Franklin Templeton 333-290153 FlexGuard Income 2.0 333-288505 <br> ActiveIncome – LPL 333-293964

**Pruco Life Insurance Company (RILA/MVA):**

---

| | | |
|:---|:---|:---|
| 333-288845 | 333-288852 | 333-288859 |
| 333-288846 | 333-288853 | 333-288860 |
| 333-288847 | 333-288855 | 333-288861 |
| 333-288848 | 333-288856 | 333-288862 |
| 333-288849 | 333-288857 | 333-288864 |
| 333-288851 | 333-288858 | 333-288865 |

---

**Pruco Life Flexible Premium Variable Annuity Account (811-07325):**

---

| | | |
|:---|:---|:---|
| 333-06701 | 333-37728 | 333-130989 |
| 333-162673 | 333-162680 | 333-170466 |
| 333-184541 | 333-184887 | 333-184888 |
| 333-184890 | 333-192701 | 333-230983 |
| 333-256965 | 333-256966 | 333-267463 |

---

IN WITNESS WHEREOF, I have hereunto set my hand on March 27, 2026.

---

| |
|:---|
| /s/ Salene Hitchcock-Gear |
| Salene Hitchcock-Gear |
| Director |

---