PRUCO LIFE INSURANCE COMPANY
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
STRATEGIC PARTNERSSM ADVISOR
STRATEGIC PARTNERSSM ANNUITY ONE
STRATEGIC PARTNERSSM ANNUITY ONE 3
STRATEGIC PARTNERSSM FLEXELITE
STRATEGIC PARTNERSSM PLUS
STRATEGIC PARTNERSSM PLUS 3
STRATEGIC PARTNERSSM SELECT
PRUDENTIAL QUALIFIED VARIABLE INVESTMENT PLAN
PRUDENTIAL VARIABLE INVESTMENT PLAN
Supplement, Dated August 13, 2004 to Prospectuses Dated May 1, 2004
This supplement should be read and retained with the current prospectus for your annuity contract. If you would like another copy of
a current prospectus or a statement of additional information, please contact us at (888) PRU-2888.
Changes to certain systems under which we administer your annuity will take effect on or about September 7, 2004. These changes are
the result of further efforts to integrate American Skandia Life Assurance Corporation's operations into the operations of other
subsidiary companies of Prudential Financial, Inc. The following changes relate primarily to those systems-related changes, but also
include changes that reflect other product and/or disclosure modifications.
This supplement is intended to update certain information in the May 1, 2004 prospectus for the variable annuity you own, and is not
intended to be a prospectus or offer for any other variable annuity listed here that you do not own.
CHANGES APPLICABLE TO ALL ANNUITIES:
COMPANY TAXES: In Section 6 of the prospectus, under the heading entitled "Company Taxes," we replace the existing disclosure with
the following:
"In calculating our corporate income tax liability, we 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 may include foreign tax
credits and corporate dividends received deductions. We do not pass these tax benefits through to owners 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 pass through company income taxes on the taxable corporate earnings created by this annuity. We
reserve the right to change these tax practices."
ASSIGNMENT: In Section 9 of the prospectus, under the heading entitled "Assignment," we add the following sentence to the end of the
first paragraph:
"If you assign the contract, that assignment will result in the termination of any automated withdrawal program that had
been in effect. If the new owner wants to re-institute an automated withdrawal program, then he/she needs to submit the forms that
we require, in good order."
CHANGES APPLICABLE TO ALL ANNUITIES EXCEPT FOR PRUDENTIAL QUALIFIED VARIABLE INVESTMENT PLAN AND PRUDENTIAL VARIABLE INVESTMENT PLAN:
TRANSFERS AMONG OPTIONS: In Section 2 of the prospectus, under the heading entitled "Transfers Among Options," the following
sentence is added to the end of the last paragraph:
"For purposes of the 12 free transfers per year that we allow, we will treat multiple transfers
that are submitted on the same business day as a single transfer."
DOLLAR COST AVERAGING: In Section 2 of the prospectus, under the heading entitled "Dollar Cost Averaging," the references to a
$100 minimum transfer amount and a $100 minimum DCA account balance in the first and third sentences of the second paragraph are
deleted.
SCHEDULED TRANSACTIONS: In Section 2 of the prospectus, the following is added as a new sub-section immediately following the
section entitled "Auto-Rebalancing":
"Scheduled Transactions
"Scheduled transactions" include transfers under dollar cost averaging, an asset allocation program, auto-rebalancing,
systematic withdrawals, minimum distributions or annuity payments. Generally, we will process a scheduled transaction on
the next business day when the scheduled transaction falls on a day that is not a business day. If this practice would
result in the transaction occurring in the subsequent calendar year, then we will process the transaction on the preceding
business day."
CHANGE APPLICABLE TO ALL ANNUITIES EXCEPT FOR PRUCO LIFE & PRUCO LIFE OF NEW JERSEY STRATEGIC PARTNERS SELECT, PRUDENTIAL QUALIFIED
VARIABLE INVESTMENT PLAN AND PRUDENTIAL VARIABLE INVESTMENT PLAN:
PURCHASE PAYMENTS: In Section 5 of the prospectus, under the heading entitled "Purchase Payments," the second sentence in the first
paragraph is replaced by the following:
"The minimum initial purchase payment is $10,000. Where allowed by law, you must get our approval
for any initial and additional purchase payment of $1,000,000 or more."
CHANGES APPLICABLE TO PRUCO LIFE STRATEGIC PARTNERS FLEXELITE ONLY:
GUARANTEED MINIMUM INCOME BENEFIT: In Section 3 of the prospectus, under the sub-section entitled "Effect of Withdrawals":
(i) The second sentence of the first paragraph is deleted in its entirety.
(ii) The fifth sentence of the first paragraph is replaced by the following:
"The resulting percentage is multiplied by the GMIB protected value after subtracting the
amount of the withdrawal that does not exceed 5%."
(iii) The following sentence is added to the end of the first paragraph:
"The GMIB roll-up cap is reduced by the sum of all reductions described above."
(iv) The third and fourth sub-bullets in Example 2 are replaced with the following:
"The GMIB 200% cap is reduced by the sum of all reductions above ($490,000 - $2,500 -
$8,257.55, or $479,242.45)."
(v) The second bullet in Example 3 is replaced with the following:
"The GMIB 200% cap is reduced by the amount withdrawn (i.e., by $10,000, from
$479,242.45 to $469,242.45)."
HYPOTHETICAL ILLUSTRATIONS: In Appendix B of the prospectus, we replace the existing disclosure with the following to reflect recent
changes to the fees of the asset allocation portfolios of The Prudential Series Fund, Inc:
HYPOTHETICAL ILLUSTRATIONS
The illustrations set out in the following tables depict hypothetical values based on the following salient assumptions:
We assume that (i) the contract was issued to a male who was 60 years old on the contract date, (ii) he made a single
purchase payment of $100,000 on the contract date, and (iii) he took no withdrawals during the time period illustrated.
To calculate the contract values illustrated on the following pages, we start with certain hypothetical rates of return
(i.e., gross rates of return equal to 0%, 6% and 10% annually). The hypothetical gross rates of return are first reduced by the
arithmetic average fees of the mutual funds underlying the variable investment options. To compute the arithmetic average of the fees
of the underlying mutual funds, we added the investment management fees, other expenses, and any 12b-1 fees of each underlying mutual
fund and then divided that sum by the number of mutual funds within the annuity product. In other words, we assumed hypothetically
that values are allocated equally among the variable investment options. If you allocated the contract value unequally among the
variable investment options, that would affect the amount of mutual fund fees that you bear indirectly, and thereby would influence
the values under the annuity contract. Based on the fees of the underlying mutual funds as of December 31, 2003 (not giving effect
to the expense reimbursements or expense waivers that are described in the prospectus fee table, and for certain portfolios
reflecting expense adjustments), the arithmetic average fund fees were equal to 1.11% annually. If we did take expense
reimbursements and waivers into account here, that would have lowered the arithmetic average, and thereby increased the illustrated
values. The hypothetical gross rates of return are next reduced by the insurance and administrative charge associated with the
selected death benefit option. Finally, the contract value is reduced by the annual charges for the optional benefits that are
illustrated as well as by the contract maintenance charge.
The hypothetical gross rates of return of 0%, 6% and 10% annually, when reduced by the arithmetic average mutual fund fees
and the insurance and administrative charge, correspond to net annual rates of return of -3.04%, 2.78% and 6.66%, respectively.
These net rates of return do not reflect the contract maintenance charge or the charges for optional benefits. If those charges were
reflected in the above-referenced net returns, then the net returns would be lower.
An 'N/A' in these columns indicates that the benefit cannot be exercised in that year.
A '0' in certain columns within these illustrations indicates that the benefit has no value. For example, with respect to
the Income Appreciator Benefit, there are no earnings within the contract under a 0% assumed rate of return. Because IAB is a
percentage of earnings, the IAB benefit value would be '0' in that scenario.
The values that you actually realize under a contract will be different from what is depicted here if any of the assumptions
we make here differ from your circumstances. We will provide you with a personalized illustration upon request.
Please see your prospectus for the meaning of the terms used here and for a description of how the various illustrated
features operate.
STRATEGIC PARTNERS FLEXELITE
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
No Credit Election
Greater of Roll-Up and Step-Up Guaranteed Minimum Death Benefit
Earnings Appreciator Benefit
Guaranteed Minimum Income Benefit
Income Appreciator Benefit
10% Assumed Rate Of Return
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
PROJECTED VALUE DEATH BENEFIT(S) LIVING BENEFIT(S)
----------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------
EAB IAB GMIB
---------------------------------------------------------------------------
---------------------------------------------------------------------------
GMIB Projected
GuaranteeContract
Annual Annual
Payout Annuity
for Payout
Single for
Death Earnings Total Death Amount GMIB Life Single
Annuitant Contract Surrender Benefit Appreciator Benefit Available Protected Annuity Life
Year Age Value Value Value Benefit Value and IAB Value to Value with 10 Annuity
EAB Annuitize year with 10
Period Year
Certain Period
Certain
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
1 61 105,560 99,260 105,560 2,224 107,784 N/A N/A 105,000 N/A N/A
2 62 111,432 105,132 111,432 4,573 116,005 N/A N/A 110,250 N/A N/A
3 63 117,633 117,633 117,633 7,053 124,687 N/A N/A 115,763 N/A N/A
4 64 124,183 124,183 124,183 9,673 133,857 N/A N/A 121,551 N/A N/A
5 65 131,101 131,101 131,101 12,441 143,542 N/A N/A 127,628 N/A N/A
6 66 138,408 138,408 138,408 15,363 153,772 N/A N/A 134,010 N/A N/A
7 67 146,126 146,126 146,126 18,451 164,577 6,919 153,045 140,710 7,683 9,351
8 68 154,279 154,279 154,279 21,711 175,990 8,142 162,421 147,746 8,331 10,169
9 69 162,890 162,890 162,890 25,156 188,046 9,434 172,324 155,133 9,036 11,062
10 70 171,986 171,986 171,986 28,795 200,781 14,397 186,384 162,889 10,550 12,271
15 75 225,786 225,786 225,786 50,314 276,100 31,446 257,232 200,000 15,775 19,298
20 80 297,541 297,541 297,541 79,016 376,557 49,385 346,926 200,000 18,991 28,881
25 85 393,894 393,894 393,894 117,558 511,451 73,473 467,367 200,000 23,743 43,783
30 90 523,277 523,277 523,277 120,000 643,277 105,819 629,097 200,000 29,022 63,544
35 95 697,014 697,014 697,014 120,000 817,014 149,254 846,268 200,000 35,949 91,209
----------------------------------------------------------------------------------------------------------------------
6% Assumed Rate Of Return
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
PROJECTED VALUE DEATH BENEFIT(S) LIVING BENEFIT(S)
----------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------
EAB IAB GMIB
---------------------------------------------------------------------------
GMIB Projected
GuaranteeContract
Annual Annual
Payout Annuity
for Payout
Single for
Death Earnings Total Death Amount GMIB Life Single
Annuitant Contract Surrender Benefit Appreciator Benefit Available Protected Annuity Life
Year Age Value Value Value Benefit Value and IAB Value to Value with 10 Annuity
EAB Annuitize year with 10
Period Year
Certain Period
Certain
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
1 61 101,703 95,403 105,000 681 105,681 N/A N/A 105,000 N/A N/A
2 62 103,418 97,118 110,250 1,367 111,617 N/A N/A 110,250 N/A N/A
3 63 105,144 105,144 115,763 2,057 117,820 N/A N/A 115,763 N/A N/A
4 64 106,879 106,879 121,551 2,752 124,302 N/A N/A 121,551 N/A N/A
5 65 108,624 108,624 127,628 3,450 131,078 N/A N/A 127,628 N/A N/A
6 66 110,376 110,376 134,010 4,151 138,160 N/A N/A 134,010 N/A N/A
7 67 112,135 112,135 140,710 4,854 145,564 1,820 113,955 140,710 7,417 6,963
8 68 113,898 113,898 147,746 5,559 153,305 2,085 115,982 147,746 8,007 7,262
9 69 115,664 115,664 155,133 6,265 161,398 2,350 118,013 155,133 8,647 7,575
10 70 117,431 117,431 162,889 6,972 169,862 3,486 120,917 162,889 9,901 7,961
15 75 126,235 126,235 207,893 10,494 218,387 6,559 132,794 200,000 14,079 9,962
20 80 135,624 135,624 265,330 14,250 279,580 8,906 144,530 200,000 15,908 12,032
25 85 146,101 146,101 265,330 18,440 283,770 11,525 157,626 200,000 18,365 14,766
30 90 157,790 157,790 265,330 23,116 288,446 14,447 172,237 200,000 20,351 17,397
35 95 170,832 170,832 265,330 28,333 293,663 17,708 188,540 200,000 22,409 20,320
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
0% Assumed Rate Of Return
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
PROJECTED VALUE DEATH BENEFIT(S) LIVING BENEFIT(S)
----------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------
EAB IAB GMIB
---------------------------------------------------------------------------
GMIB Projected
GuaranteeContract
Annual Annual
Payout Annuity
for Payout
Single for
Death Earnings Total Death Amount GMIB Life Single
Annuitant Contract Surrender Benefit Appreciator Benefit Available Protected Annuity Life
Year Age Value Value Value Benefit Value IAB Value to Value with 10 Annuity
and EAB Annuitize year with 10
Period Year
Certain Period
Certain
----------------------------------------------------------------------------------------------------------------------
1 61 95,867 89,817 105,000 0 105,000 N/A N/A 105,000 N/A N/A
2 62 91,856 86,085 110,250 0 110,250 N/A N/A 110,250 N/A N/A
3 63 87,961 87,961 115,763 0 115,763 N/A N/A 115,763 N/A N/A
4 64 84,177 84,177 121,551 0 121,551 N/A N/A 121,551 N/A N/A
5 65 80,499 80,499 127,628 0 127,628 N/A N/A 127,628 N/A N/A
6 66 76,920 76,920 134,010 0 134,010 N/A N/A 134,010 N/A N/A
7 67 73,437 73,437 140,710 0 140,710 0 73,437 140,710 7,323 4,487
8 68 70,044 70,044 147,746 0 147,746 0 70,044 147,746 7,896 4,386
9 69 66,736 66,736 155,133 0 155,133 0 66,736 155,133 8,518 4,284
10 70 63,508 63,508 162,889 0 162,889 0 63,508 162,889 9,694 4,181
15 75 48,428 48,428 207,893 0 207,893 0 48,428 200,000 13,632 3,633
20 80 35,490 35,490 265,330 0 265,330 0 35,490 200,000 15,230 2,955
25 85 24,702 24,702 265,330 0 265,330 0 24,702 200,000 17,364 2,314
30 90 15,708 15,708 265,330 0 265,330 0 15,708 200,000 18,980 1,587
35 95 8,209 8,209 265,330 0 265,330 0 8,209 200,000 20,586 885
----------------------------------------------------------------------------------------------------------------------
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment
results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment
allocations made by the owner. The contract values and guaranteed benefits for a contract would be different from the ones shown if
the actual gross rate of investment return averaged 0%, 6% or 10% over a period of years, but also fluctuated above or below the
average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for
any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative.
Explanation of Headings
Contract Value - The projected total value of the annuity at the end of the period indicated, after all fees other than withdrawal
charges have been deducted.
Surrender Value - The projected cash value of the annuity at the end of the period indicated.
Death Benefit Value - Greater of the contract value or purchase payments (adjusted for withdrawals) compounded at 5% annually up to
the later of age 80 or 5 years from issue (for age 80-85 at issue, 3% annual roll-up for 5 years) or the highest contract value (the
"step-up") on any contract anniversary up to the later of age 80 or the fifth contract anniversary adjusted for withdrawals (age
80-84 at issue will have only one step-up on the third contract anniversary) is payable to the beneficiary(s) on death of owner or
joint owner. See the prospectus for more complete information.
Earnings Appreciator Benefit (EAB) - A supplemental death benefit based on 40% of earnings if issue age is 0-70, 25% for age 71-75;
15% for age 76-79, subject to a cap equal to 300% of purchase payments multiplied by the applicable benefit percentage. See
prospectus for more complete information.
IAB Value - Percentage of earnings in the contract upon IAB activation based on the length of time the contract is in force: 7-9
years, 15%; 10-14 years, 20%; 15+ years, 25%. See prospectus for more complete information.
Amount Available to Annuitize - The contract value plus the IAB value. See prospectus for more complete information.
GMIB Protected Value - Purchase payments (adjusted for withdrawals) compounded at 5% annually up to the later of age 80 or 7 years
from issue or last reset, subject to a 200% cap. See prospectus for more complete information.
GMIB Guaranteed Annual Payout for Single Life Annuity with 10-year Period Certain - The payout determined by applying the GMIB
protected value (and IAB value if IAB is elected) to the GMIB guaranteed annuity purchase rates contained in the contract. The
payout represents the minimum payout to be received when annuitizing the contract based on the illustrated assumptions. See
prospectus for more complete information.
Projected Contract Annual Annuity Payout for Single Life Annuity with 10-year Period Certain - The hypothetical annuity payout based
on the projected contract value (and IAB value if IAB is elected) calculated using the minimum payout rates guaranteed under the
contract ("Guaranteed Minimum Payout Rates"). See prospectus for more complete information.
If the GMIB benefit is elected, the greater of the following would be paid at annuitization -
(1) The GMIB Guaranteed Payout, or
(2) The annuity payout available under the contract that is calculated based on the adjusted contract value at
annuitization and the better of the Guaranteed Minimum Annuity Payout Rates or the Current Annuity Payout Rates in
effect at the time of annuitization. To show how the GMIB rider works relative to the annuity payout available under
the contract we included the Projected Contract Annuity Payout column which shows hypothetical annuity payouts based on
the projected contract values and the Guaranteed Minimum Payout Rates. We did not illustrate any hypothetical annuity
payouts based on Current Annuity Payout Rates because these rates are subject to change at any time; however,
historically the annuity payout provided under such Current Annuity Payout Rates have been significantly higher than
the annuity payout that would be provided under Guaranteed Minimum Annuity Payout Rates.
CHANGES APPLICABLE TO PRUCO LIFE STRATEGIC PARTNERS ANNUITY ONE 3 AND STRATEGIC PARTNERS PLUS 3 ONLY:
GUARANTEED MINIMUM INCOME BENEFIT: In Section 3 of the prospectus, under the sub-section entitled "Effect of Withdrawals":
(i) The second sentence of the first paragraph is deleted in its entirety.
(ii) The fifth sentence of the first paragraph is replaced by the following:
"The resulting percentage is multiplied by the GMIB protected value after subtracting the
amount of the withdrawal that does not exceed 5%."
(iii) The following sentence is added to the end of the first paragraph:
"The GMIB roll-up cap is reduced by the sum of all reductions described above."
(vi) The third and fourth sub-bullets in Example 2 are replaced with the following:
"The GMIB 200% cap is reduced by the sum of all reductions above ($490,000 - $2,500 -
$8,257.55, or $479,242.45)."
(vii) The second bullet in Example 3 is replaced with the following:
"The GMIB 200% cap is reduced by the amount withdrawn (i.e., by $10,000, from
$479,242.45 to $469,242.45)."
CHANGES APPLICABLE TO PRUCO LIFE STRATEGIC PARTNERS ANNUITY ONE 3 ONLY:
HYPOTHETICAL ILLUSTRATIONS: In Appendix B of the prospectus, we replace the existing disclosure with the following to reflect recent
changes to the fees of the asset allocation portfolios of The Prudential Series Fund, Inc:
HYPOTHETICAL ILLUSTRATIONS
The illustrations set out in the following tables depict hypothetical values based on the following salient assumptions:
We assume that (i) the contract was issued to a male who was 60 years old on the contract date, (ii) he made a single
purchase payment of $100,000 on the contract date, and (iii) he took no withdrawals during the time period illustrated.
To calculate the contract values illustrated on the following pages, we start with certain hypothetical rates of return
(i.e., gross rates of return equal to 0%, 6% and 10% annually). The hypothetical gross rates of return are first reduced by the
arithmetic average fees of the mutual funds underlying the variable investment options. To compute the arithmetic average of the fees
of the underlying mutual funds, we added the investment management fees, other expenses, and any 12b-1 fees of each underlying mutual
fund and then divided that sum by the number of mutual funds within the annuity product. In other words, we assumed hypothetically
that values are allocated equally among the variable investment options. If you allocated the contract value unequally among the
variable investment options, that would affect the amount of mutual fund fees that you bear indirectly, and thereby would influence
the values under the annuity contract. Based on the fees of the underlying mutual funds as of December 31, 2003 (not giving effect
to the expense reimbursements or expense waivers that are described in the prospectus fee table, and for certain portfolios
reflecting expense adjustments), the arithmetic average fund fees were equal to 1.11% annually. If we did take expense
reimbursements and waivers into account here, that would have lowered the arithmetic average, and thereby increased the illustrated
values. The hypothetical gross rates of return are next reduced by the insurance and administrative charge associated with the
selected death benefit option. Finally, the contract value is reduced by the annual charges for the optional benefits that are
illustrated as well as by the contract maintenance charge.
The hypothetical gross rates of return of 0%, 6% and 10% annually, when reduced by the arithmetic average mutual fund fees
and the insurance and administrative charge, correspond to net annual rates of return of -2.80%, 3.03% and 6.92%, respectively.
These net rates of return do not reflect the contract maintenance charge or the charges for optional benefits. If those charges were
reflected in the above-referenced net returns, then the net returns would be lower.
An 'N/A' in these columns indicates that the benefit cannot be exercised in that year.
A '0' in certain columns within these illustrations indicates that the benefit has no value. For example, with respect to
the Income Appreciator Benefit, there are no earnings within the contract under a 0% assumed rate of return. Because IAB is a
percentage of earnings, the IAB benefit value would be '0' in that scenario.
The values that you actually realize under a contract will be different from what is depicted here if any of the assumptions
we make here differ from your circumstances. We will provide you with a personalized illustration upon request.
Please see your prospectus for the meaning of the terms used here and for a description of how the various illustrated
features operate.
STRATEGIC PARTNERS ANNUITY ONE 3
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Contract Without Credit
Greater of Roll-Up and Step-Up Guaranteed Minimum Death Benefit
Earnings Appreciator Benefit
Guaranteed Minimum Income Benefit
Income Appreciator Benefit
10% Assumed Rate Of Return
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
PROJECTED VALUE DEATH BENEFIT(S) LIVING BENEFIT(S)
-----------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------
EAB IAB GMIB
---------------------------------------------------------------------------
---------------------------------------------------------------------------
GMIB Projected
GuaranteeContract
Annual Annual
Payout Annuity
for Payout
Single for
Death Earnings Total Death Amount GMIB Life Single
Annuitant Contract Surrender Benefit Appreciator Benefit Available Protected Annuity Life
Year Age Value Value Value Benefit Value and IAB Value to Value with 10 Annuity
EAB Annuitize year with 10
Period Year
Certain Period
Certain
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
1 61 105,821 100,421 105,821 2,328 108,149 N/A N/A 105,000 N/A N/A
2 62 111,984 107,484 111,984 4,794 116,778 N/A N/A 110,250 N/A N/A
3 63 118,511 114,911 118,511 7,404 125,916 N/A N/A 115,763 N/A N/A
4 64 125,423 122,723 125,423 10,169 135,593 N/A N/A 121,551 N/A N/A
5 65 132,744 130,944 132,744 13,097 145,841 N/A N/A 127,628 N/A N/A
6 66 140,496 139,596 140,496 16,199 156,695 N/A N/A 134,010 N/A N/A
7 67 148,707 148,707 148,707 19,483 168,190 7,306 156,013 140,710 7,703 9,532
8 68 157,404 157,404 157,404 22,962 180,365 8,611 166,014 147,746 8,356 10,394
9 69 166,615 166,615 166,615 26,646 193,261 9,992 176,607 155,133 9,067 11,337
10 70 176,372 176,372 176,372 30,549 206,921 15,274 191,646 162,889 10,603 12,618
15 75 234,573 234,573 234,573 53,829 288,402 33,643 268,216 200,000 15,925 20,122
20 80 313,200 313,200 313,200 85,280 398,480 53,300 366,500 200,000 19,289 30,511
25 85 420,085 420,085 420,085 120,000 540,085 80,021 500,106 200,000 24,311 46,850
30 90 565,382 565,382 565,382 120,000 685,382 116,345 681,727 200,000 30,021 68,860
35 95 762,896 762,896 762,896 120,000 882,896 165,724 928,620 200,000 37,644 100,085
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
6% Assumed Rate Of Return
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
PROJECTED VALUE DEATH BENEFIT(S) LIVING BENEFIT(S)
-----------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------
EAB IAB GMIB
---------------------------------------------------------------------------
GMIB Projected
GuaranteeContract
Annual Annual
Payout Annuity
for Payout
Single for
Death Earnings Total Death Amount GMIB Life Single
Annuitant Contract Surrender Benefit Appreciator Benefit Available Protected Annuity Life
Year Age Value Value Value Benefit Value and IAB Value to Value with 10 Annuity
EAB Annuitize year with 10
Period Year
Certain Period
Certain
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
1 61 101,954 96,554 105,000 782 105,782 N/A N/A 105,000 N/A N/A
2 62 103,930 99,430 110,250 1,572 111,822 N/A N/A 110,250 N/A N/A
3 63 105,929 102,329 115,763 2,372 118,134 N/A N/A 115,763 N/A N/A
4 64 107,948 105,248 121,551 3,179 124,730 N/A N/A 121,551 N/A N/A
5 65 109,988 108,188 127,628 3,995 131,623 N/A N/A 127,628 N/A N/A
6 66 112,046 111,146 134,010 4,819 138,828 N/A N/A 134,010 N/A N/A
7 67 114,123 114,123 140,710 5,649 146,359 2,118 116,242 140,710 7,433 7,102
8 68 116,217 116,217 147,746 6,487 154,232 2,433 118,649 147,746 8,026 7,429
9 69 118,326 118,326 155,133 7,330 162,463 2,749 121,075 155,133 8,669 7,772
10 70 120,449 120,449 162,889 8,180 171,069 4,090 124,539 162,889 9,937 8,200
15 75 131,240 131,240 207,893 12,496 220,389 7,810 139,049 200,000 14,164 10,432
20 80 142,990 142,990 265,330 17,196 282,526 10,747 153,737 200,000 16,048 12,798
25 85 156,262 156,262 265,330 22,505 287,835 14,066 170,328 200,000 18,585 15,956
30 90 171,254 171,254 265,330 28,502 293,831 17,814 189,068 200,000 20,671 19,097
35 95 188,189 188,189 265,330 35,275 300,605 22,047 210,236 200,000 22,855 22,659
-----------------------------------------------------------------------------------------------------------------------
0% Assumed Rate Of Return
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
PROJECTED VALUE DEATH BENEFIT(S) LIVING BENEFIT(S)
-----------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------
EAB IAB GMIB
---------------------------------------------------------------------------
GMIB Projected
GuaranteeContract
Annual Annual
Payout Annuity
for Payout
Single for
Death Earnings Total Death Amount GMIB Life Single
Annuitant Contract Surrender Benefit Appreciator Benefit Available Protected Annuity Life
Year Age Value Value Value Benefit Value IAB Value to Value with 10 Annuity
and EAB Annuitize year with 10
Period Year
Certain Period
Certain
-----------------------------------------------------------------------------------------------------------------------
1 61 96,154 90,954 105,000 0 105,000 N/A N/A 105,000 N/A N/A
2 62 92,410 88,263 110,250 0 110,250 N/A N/A 110,250 N/A N/A
3 63 88,765 85,592 115,763 0 115,763 N/A N/A 115,763 N/A N/A
4 64 85,213 82,938 121,551 0 121,551 N/A N/A 121,551 N/A N/A
5 65 81,749 80,302 127,628 0 127,628 N/A N/A 127,628 N/A N/A
6 66 78,370 77,680 134,010 0 134,010 N/A N/A 134,010 N/A N/A
7 67 75,070 75,070 140,710 0 140,710 0 75,070 140,710 7,323 4,587
8 68 71,812 71,812 147,746 0 147,746 0 71,812 147,746 7,896 4,496
9 69 68,626 68,626 155,133 0 155,133 0 68,626 155,133 8,518 4,405
10 70 65,508 65,508 162,889 0 162,889 0 65,508 162,889 9,694 4,313
15 75 50,820 50,820 207,893 0 207,893 0 50,820 200,000 13,632 3,813
20 80 38,054 38,054 265,330 0 265,330 0 38,054 200,000 15,230 3,168
25 85 27,279 27,279 265,330 0 265,330 0 27,279 200,000 17,364 2,555
30 90 18,184 18,184 265,330 0 265,330 0 18,184 200,000 18,980 1,837
35 95 10,507 10,507 265,330 0 265,330 0 10,507 200,000 20,586 1,132
-----------------------------------------------------------------------------------------------------------------------
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment
results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment
allocations made by the owner. The contract values and guaranteed benefits for a contract would be different from the ones shown if
the actual gross rate of investment return averaged 0%, 6% or 10% over a period of years, but also fluctuated above or below the
average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for
any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative.
Explanation of Headings
Contract Value - The projected total value of the annuity at the end of the period indicated, after all fees other than withdrawal
charges have been deducted.
Surrender Value - The projected cash value of the annuity at the end of the period indicated.
Death Benefit Value - Greater of the contract value or purchase payments (adjusted for withdrawals) compounded at 5% annually up to
the later of age 80 or 5 years from issue (for age 80-85 at issue, 3% annual roll-up for 5 years) or the highest contract value (the
"step-up") on any contract anniversary up to the later of age 80 or the fifth contract anniversary adjusted for withdrawals (age
80-84 at issue will have only one step-up on the third contract anniversary) is payable to the beneficiary(s) on death of owner or
joint owner. See the prospectus for more complete information.
Earnings Appreciator Benefit (EAB) - A supplemental death benefit based on 40% of earnings if issue age is 0-70, 25% for age 71-75;
15% for age 76-79, subject to a cap equal to 300% of purchase payments multiplied by the applicable benefit percentage. See
prospectus for more complete information.
IAB Value - Percentage of earnings in the contract upon IAB activation based on the length of time the contract is in force: 7-9
years, 15%; 10-14 years, 20%; 15+ years, 25%. See prospectus for more complete information.
Amount Available to Annuitize - The contract value plus the IAB value. See prospectus for more complete information.
GMIB Protected Value - Purchase payments (adjusted for withdrawals) compounded at 5% annually up to the later of age 80 or 7 years
from issue or last reset, subject to a 200% cap. See prospectus for more complete information.
GMIB Guaranteed Annual Payout for Single Life Annuity with 10-year Period Certain - The payout determined by applying the GMIB
protected value (and IAB value if IAB is elected) to the GMIB guaranteed annuity purchase rates contained in the contract. The
payout represents the minimum payout to be received when annuitizing the contract based on the illustrated assumptions. See
prospectus for more complete information.
Projected Contract Annual Annuity Payout for Single Life Annuity with 10-year Period Certain - The hypothetical annuity payout based
on the projected contract value (and IAB value if IAB is elected) calculated using the minimum payout rates guaranteed under the
contract ("Guaranteed Minimum Payout Rates"). See prospectus for more complete information.
If the GMIB benefit is elected, the greater of the following would be paid at annuitization -
(1) The GMIB Guaranteed Payout, or
(2) The annuity payout available under the contract that is calculated based on the adjusted contract value at
annuitization and the better of the Guaranteed Minimum Annuity Payout Rates or the Current Annuity Payout Rates in
effect at the time of annuitization. To show how the GMIB rider works relative to the annuity payout available under
the contract we included the Projected Contract Annuity Payout column which shows hypothetical annuity payouts based on
the projected contract values and the Guaranteed Minimum Payout Rates. We did not illustrate any hypothetical annuity
payouts based on Current Annuity Payout Rates because these rates are subject to change at any time; however,
historically the annuity payout provided under such Current Annuity Payout Rates have been significantly higher than
the annuity payout that would be provided under Guaranteed Minimum Annuity Payout Rates.
CHANGES APPLICABLE TO PRUCO LIFE OF NEW JERSEY STRATEGIC PARTNERS ANNUITY ONE 3 AND STRATEGIC PARTNERS PLUS 3 ONLY:
GUARANTEED MINIMUM INCOME BENEFIT: In Section 3 of the prospectus, under the sub-section entitled "Effect of Withdrawals":
(i) the second sentence of the first paragraph is deleted in its entirety.
(ii) the fifth sentence of the first paragraph is replaced by the following:
"The resulting percentage is multiplied by the GMIB protected value after subtracting the amount of the withdrawal that
does not exceed 5%."
(iii) the following sentence is added to the end of the first paragraph:
"The GMIB roll-up cap is reduced by the sum of all reductions described above."
(viii) the third and fourth sub-bullets in Example 2 are replaced with the following:
"The GMIB 200% cap is reduced by the sum of all reductions above ($490,000 - $2,500 - $8,258.85, or $479,241.15)."
(ix) the second bullet in Example 3 is replaced with the following:
"The GMIB 200% cap is reduced by the amount withdrawn (i.e., by $10,000, from $479,241.15 to $469,241.15)."
CHANGES APPLICABLE TO PRUCO LIFE OF NEW JERSEY STRATEGIC PARTNERS ANNUITY ONE 3 ONLY:
HYPOTHETICAL ILLUSTRATIONS: In Appendix B of the prospectus, we replace the existing disclosure with the following to reflect recent
changes to the fees of the asset allocation portfolios of The Prudential Series Fund, Inc:
HYPOTHETICAL ILLUSTRATIONS
The illustrations set out in the following tables depict hypothetical values based on the following salient assumptions:
We assume that (i) the contract was issued to a male who was 60 years old on the contract date, (ii) he made a single
purchase payment of $100,000 on the contract date, and (iii) he took no withdrawals during the time period illustrated.
To calculate the contract values illustrated on the following pages, we start with certain hypothetical rates of return
(i.e., gross rates of return equal to 0%, 6% and 10% annually). The hypothetical gross rates of return are first reduced by the
arithmetic average fees of the mutual funds underlying the variable investment options. To compute the arithmetic average of the fees
of the underlying mutual funds, we added the investment management fees, other expenses, and any 12b-1 fees of each underlying mutual
fund and then divided that sum by the number of mutual funds within the annuity product. In other words, we assumed hypothetically
that values are allocated equally among the variable investment options. If you allocated the contract value unequally among the
variable investment options, that would affect the amount of mutual fund fees that you bear indirectly, and thereby would influence
the values under the annuity contract. Based on the fees of the underlying mutual funds as of December 31, 2003 (not giving effect
to the expense reimbursements or expense waivers that are described in the prospectus fee table, and for certain portfolios
reflecting expense adjustments), the arithmetic average fund fees were equal to 1.11% annually. If we did take expense
reimbursements and waivers into account here, that would have lowered the arithmetic average, and thereby increased the illustrated
values. The hypothetical gross rates of return are next reduced by the insurance and administrative charge associated with the
selected death benefit option. Finally, the contract value is reduced by the annual charges for the optional benefits that are
illustrated as well as by the contract maintenance charge.
The hypothetical gross rates of return of 0%, 6% and 10% annually, when reduced by the arithmetic average mutual fund fees
and the insurance and administrative charge, correspond to net annual rates of return of -2.70%, 3.13% and 7.03%, respectively.
These net rates of return do not reflect the contract maintenance charge or the charges for optional benefits. If those charges were
reflected in the above-referenced net returns, then the net returns would be lower.
An 'N/A' in these columns indicates that the benefit cannot be exercised in that year.
A '0' in certain columns within these illustrations indicates that the benefit has no value. For example, with respect to
the Income Appreciator Benefit, there are no earnings within the contract under a 0% assumed rate of return. Because IAB is a
percentage of earnings, the IAB benefit value would be '0' in that scenario.
The values that you actually realize under a contract will be different from what is depicted here if any of the assumptions
we make here differ from your circumstances. We will provide you with a personalized illustration upon request.
Please see your prospectus for the meaning of the terms used here and for a description of how the various illustrated
features operate.
STRATEGIC PARTNERS ANNUITY ONE 3
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Contract Without Credit
Step-Up Guaranteed Minimum Death Benefit
Guaranteed Minimum Income Benefit
Income Appreciator Benefit
10% Assumed Rate Of Return
---------------------------------------------------------------------------------------------------------
--------------------------------------------------------
PROJECTED VALUE DEATH LIVING BENEFIT(S)
BENEFIT
---------------------------------------------------------------------------------------------------------
--------------------------------------------------------
IAB GMIB
Death
AnnuitantContract Surrender Benefit
Year Age Value Value Value
--------------------------------------------------------
--------------------------------------------------------
Projected
GMIB Contract
Guaranteed Annual
Annual Annuity
Amount GMIB Payout for Payout for
Available Protected Single Life Single Life
IAB to Value Annuity Annuity
Value Annuitize with 10 with 10
year Period Year Period
Certain Certain
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
1 61 106,246 100,846 106,246 N/A N/A 105,000 N/A N/A
2 62 112,889 108,389 112,889 N/A N/A 110,250 N/A N/A
3 63 119,954 116,354 119,954 N/A N/A 115,763 N/A N/A
4 64 127,468 124,768 127,468 N/A N/A 121,551 N/A N/A
5 65 135,461 133,661 135,461 N/A N/A 127,628 N/A N/A
6 66 143,962 143,062 143,962 N/A N/A 134,010 N/A N/A
7 67 153,005 153,005 153,005 7,951 160,956 140,710 7,736 9,834
8 68 162,625 162,625 162,625 9,394 172,019 147,746 8,398 10,770
9 69 172,860 172,860 172,860 10,929 183,789 155,133 9,118 11,798
10 70 183,748 183,748 183,748 16,750 200,497 162,889 10,690 13,201
15 75 249,597 249,597 249,597 37,399 286,997 200,000 16,181 21,531
20 80 340,422 340,422 340,422 60,105 400,527 200,000 19,807 33,344
25 85 466,379 466,379 466,379 91,595 557,973 200,000 25,316 52,271
30 90 641,057 641,057 641,057 135,264 776,322 200,000 31,817 78,415
---------------------------------------------------------------------------------------------------------
6% Assumed Rate Of Return
---------------------------------------------------------------------------------------------------------
PROJECTED VALUE DEATH LIVING BENEFIT(S)
BENEFIT
---------------------------------------------------------------------------------------------------------
IAB GMIB
Death
Annuitant Contract Surrender Benefit
Year Age Value Value Value
--------------------------------------------------------
Projected
GMIB Contract
Guaranteed Annual
Annual Annuity
Amount GMIB Payout for Payout for
Available Protected Single Life Single Life
IAB to Value Annuity Annuity
Value Annuitize with 10 with 10
year Period Year Period
Certain Certain
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
1 61 102,364 96,964 102,364 N/A N/A 105,000 N/A N/A
2 62 104,771 100,271 104,771 N/A N/A 110,250 N/A N/A
3 63 107,220 103,620 107,220 N/A N/A 115,763 N/A N/A
4 64 109,711 107,011 109,711 N/A N/A 121,551 N/A N/A
5 65 112,244 110,444 112,244 N/A N/A 127,628 N/A N/A
6 66 114,818 113,918 114,818 N/A N/A 134,010 N/A N/A
7 67 117,435 117,435 117,435 2,615 120,050 140,710 7,459 7,335
8 68 120,092 120,092 120,092 3,014 123,105 147,746 8,057 7,708
9 69 122,789 122,789 122,789 3,418 126,207 155,133 8,706 8,101
10 70 125,526 125,526 125,526 5,105 130,631 162,889 9,997 8,601
15 75 139,797 139,797 139,797 9,949 149,746 200,000 14,310 11,234
20 80 155,799 155,799 155,799 13,950 169,749 200,000 16,292 14,131
25 85 174,239 174,239 174,239 18,560 192,799 200,000 18,975 18,061
30 90 195,488 195,488 195,488 23,872 219,360 200,000 21,245 22,157
---------------------------------------------------------------------------------------------------------
0% Assumed Rate Of Return
---------------------------------------------------------------------------------------------------------
PROJECTED VALUE DEATH LIVING BENEFIT(S)
BENEFIT
---------------------------------------------------------------------------------------------------------
IAB GMIB
Death
Annuitant Contract Surrender Benefit
Year Age Value Value Value
--------------------------------------------------------
Projected
GMIB Contract
Guaranteed Annual
Annual Annuity
Amount GMIB Payout for Payout for
Available Protected Single Life Single Life
IAB to Annuitize Value Annuity Annuity
Value with 10 with 10
year Period Year Period
Certain Certain
---------------------------------------------------------------------------------------------------------
1 61 96,541 91,318 100,000 N/A N/A 105,000 N/A N/A
2 62 93,158 88,973 100,000 N/A N/A 110,250 N/A N/A
3 63 89,848 86,632 100,000 N/A N/A 115,763 N/A N/A
4 64 86,607 84,291 100,000 N/A N/A 121,551 N/A N/A
5 65 83,433 81,951 100,000 N/A N/A 127,628 N/A N/A
6 66 80,320 79,610 100,000 N/A N/A 134,010 N/A N/A
7 67 77,267 77,267 100,000 0 77,267 140,710 7,323 4,721
8 68 74,239 74,239 100,000 0 74,239 147,746 7,896 4,648
9 69 71,264 71,264 100,000 0 71,264 155,133 8,518 4,575
10 70 68,339 68,339 100,000 0 68,339 162,889 9,694 4,499
15 75 54,364 54,364 100,000 0 54,364 200,000 13,632 4,079
20 80 41,957 41,957 100,000 0 41,957 200,000 15,230 3,493
25 85 31,274 31,274 100,000 0 31,274 200,000 17,364 2,930
30 90 22,075 22,075 100,000 0 22,075 200,000 18,980 2,230
---------------------------------------------------------------------------------------------------------
The hypothetical investment results are illustrative only and should not be deemed a representation of past or future investment
results. Actual investment results may be more or less than those shown and will depend on a number of factors, including investment
allocations made by the owner. The contract values and guaranteed benefits for a contract would be different from the ones shown if
the actual gross rate of investment return averaged 0%, 6% or 10% over a period of years, but also fluctuated above or below the
average for individual contract years. We can make no representation that these hypothetical investment results can be achieved for
any one year or continued over any period of time. In fact, for any given period of time, the investment results could be negative.
Explanation of Headings
Contract Value - The projected total value of the annuity at the end of the period indicated, after all fees other than withdrawal
charges have been deducted.
Surrender Value - The projected cash value of the annuity at the end of the period indicated.
Death Benefit Value - Value of base death benefit or GMDB, as indicated.
IAB Value - Percentage of earnings in the contract upon IAB activation based on the length of time the contract is in force: 7-9
years, 15%; 10-14 years, 20%; 15+ years, 25%. See prospectus for more complete information.
Amount Available to Annuitize - The contract value plus the IAB value. See prospectus for more complete information.
GMIB Protected Value - Purchase payments (adjusted for withdrawals) compounded at 5% annually up to the later of age 80 or 7 years
from issue or last reset, subject to a 200% cap. See prospectus for more complete information.
GMIB Guaranteed Annual Payout for Single Life Annuity with 10-year Period Certain - The payout determined by applying the GMIB
protected value (and IAB value if IAB is elected) to the GMIB guaranteed annuity purchase rates contained in the contract. The
payout represents the minimum payout to be received when annuitizing the contract based on the illustrated assumptions. See
prospectus for more complete information.
Projected Contract Annual Annuity Payout for Single Life Annuity with 10-year Period Certain - The hypothetical annuity payout based
on the projected contract value (and IAB value if IAB is elected) calculated using the minimum payout rates guaranteed under the
contract ("Guaranteed Minimum Payout Rates"). See prospectus for more complete information.
If the GMIB benefit is elected, the greater of the following would be paid at annuitization -
(1) The GMIB Guaranteed Payout, or
(2) The annuity payout available under the contract that is calculated based on the adjusted contract value at
annuitization and the better of the Guaranteed Minimum Annuity Payout Rates or the Current Annuity Payout Rates in
effect at the time of annuitization. To show how the GMIB rider works relative to the annuity payout available under
the contract we included the Projected Contract Annuity Payout column which shows hypothetical annuity payouts based on
the projected contract values and the Guaranteed Minimum Payout Rates. We did not illustrate any hypothetical annuity
payouts based on Current Annuity Payout Rates because these rates are subject to change at any time; however,
historically the annuity payout provided under such Current Annuity Payout Rates have been significantly higher than
the annuity payout that would be provided under Guaranteed Minimum Annuity Payout Rates.
CHANGE APPLICABLE TO PRUCO LIFE STRATEGIC PARTNERS SELECT ONLY:
WAIVER OF WITHDRAWAL CHARGE FOR CRITICAL CARE: In Section 6 of the prospectus, under the heading entitled "Waiver of Withdrawal
Charge For Critical Care" in the first sentence, the reference to "owner or a joint owner" is amended to refer instead to "annuitant,
or if deceased, co-annuitant, respectively."
CHANGE APPLICABLE TO PRUCO LIFE & PRUCO LIFE OF NEW JERSEY STRATEGIC PARTNERS SELECT AND PRUDENTIAL VARIABLE INVESTMENT PLAN ONLY:
PURCHASE PAYMENTS: In Section 5 of the prospectus, under the section entitled "Purchase Payments," the third sentence in the first
paragraph is replaced by the following:
"Where allowed by law, you must get our approval for any initial and additional purchase payment of $1,000,000 or more."
CHANGE APPLICABLE TO PRUDENTIAL QUALIFIED VARIABLE INVESTMENT PLAN AND PRUDENTIAL VARIABLE INVESTMENT PLAN ONLY:
SCHEDULED TRANSACTIONS: In Section 2 of the prospectus, under the section entitled "Dollar Cost Averaging," the following is added
to the last sentence of the fourth paragraph:
"If processing the transfer on the next business day would result in the transaction occurring in the subsequent calendar
year, then we will process the transaction on the preceding business day. "