Stagecoach XTra Credit SIX - Prudential Annuities
Stagecoach XTra Credit SIX - Prudential Annuities
Stagecoach XTra Credit SIX - Prudential Annuities
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Purchasing Your Annuity<br />
AMERICAN SKANDIA STAGECOACH XTRA CREDIT <strong>SIX</strong> PROSPECTUS<br />
WHAT ARE OUR REQUIREMENTS FOR<br />
PURCHASING THE ANNUITY?<br />
Initial Purchase Payment: You must make a minimum initial<br />
Purchase Payment of $10,000. However, if you decide to make<br />
payments under a systematic investment or “bank drafting”<br />
program, we will accept a lower initial Purchase Payment provided<br />
that, within the first Annuity Year, you make at least<br />
$10,000 in total Purchase Payments.<br />
Where allowed by law, we must approve any initial and<br />
additional Purchase Payments of $1,000,000 or more. We may<br />
apply certain limitations and/or restrictions on the Annuity as a<br />
condition of our acceptance, including limiting the liquidity features<br />
or the Death Benefit protection provided under the Annuity,<br />
limiting the right to make additional Purchase Payments,<br />
changing the number of transfers allowable under the Annuity<br />
or restricting the Sub-accounts or Fixed Allocations that are<br />
available. Other limitations and/or restrictions may apply.<br />
Except as noted below, Purchase Payments must be submitted<br />
by check drawn on a U.S. bank, in U.S. dollars, and made<br />
payable to American Skandia. Purchase Payments may also be<br />
submitted via 1035 exchange or direct transfer of funds. Under<br />
certain circumstances, Purchase Payments may be transmitted<br />
to American Skandia via wiring funds through your investment<br />
professional’s broker-dealer firm. Additional Purchase Payments<br />
may also be applied to your Annuity under an arrangement<br />
called “bank drafting” where you authorize us to deduct money<br />
directly from your bank account. We call our bank drafting program<br />
“Auto Saver”. We may reject any payment if it is<br />
received in an unacceptable form. Our acceptance of a check is<br />
subject to our ability to collect funds.<br />
Age Restrictions: The Owner must be age 75 or under as<br />
of the Issue Date of the Annuity. If the Annuity is owned<br />
jointly, the oldest of the Owners must be age 75 or under on<br />
the Issue Date. If the Annuity is owned by an entity, the Annuitant<br />
must be age 75 or under as of the Issue Date. You should<br />
consider your need to access your Account Value and whether<br />
the Annuity’s liquidity features will satisfy that need. If you<br />
take a distribution prior to age 59 1 ⁄2, you may be subject to a<br />
10% penalty in addition to ordinary income taxes on any gain.<br />
The availability and level of protection of certain optional benefits<br />
may vary based on the age of the Owner on the Issue<br />
Date of the Annuity or the date of the Owner’s death.<br />
Special Considerations for Purchasers of Bonus or<br />
<strong>Credit</strong> Products<br />
• This Annuity features an annual Insurance Charge of 0.65%<br />
and an annual Distribution Charge of 1.00%. We only<br />
deduct the Distribution Charge during the first 10 years<br />
following the effective date of your Annuity. During the first<br />
10 years, the total asset-based charges on this Annuity are<br />
higher than many of our other annuities.<br />
• The CDSC on this Annuity is higher and is deducted for a<br />
longer period of time as compared to our other annuities.<br />
As with any investment product that features a CDSC, you<br />
should consider your need to access your account value<br />
during the CDSC period and whether the liquidity provision<br />
under the Annuity will satisfy that need. The CDSC is only<br />
deducted if you make a withdrawal that exceeds the free<br />
withdrawal amount or choose to surrender your Annuity.<br />
If you make a withdrawal or surrender your Annuity and<br />
are subject to a CDSC, we do not recover the <strong>XTra</strong><br />
<strong>Credit</strong> SM amount.<br />
• The <strong>XTra</strong> <strong>Credit</strong> SM amount is included in your Account<br />
Value. However, American Skandia may take back any<br />
credits applied to your Purchase Payment if you “free-look”<br />
your Annuity or within twelve (12) months of having<br />
received an <strong>XTra</strong> <strong>Credit</strong> amount, you die or elect to withdraw<br />
your Account Value under the medically-related surrender<br />
provision. In these situations, your Account Value<br />
could be substantially reduced. However, any investment<br />
gain on the <strong>XTra</strong> <strong>Credit</strong> SM amount will not be recovered.<br />
Additional conditions and restrictions apply. We do not<br />
deduct a CDSC in any situation where we recover the <strong>XTra</strong><br />
<strong>Credit</strong> SM amount.<br />
Owner, Annuitant and Beneficiary Designations: We<br />
will ask you to name the Owner(s), Annuitant and one or more<br />
Beneficiaries for your Annuity.<br />
• Owner: The Owner(s) holds all rights under the Annuity.<br />
You may name up to two Owners in which case all ownership<br />
rights are held jointly. Generally, joint owners are<br />
required to act jointly; however, if each owner provides us<br />
with an instruction that we find acceptable, we will permit<br />
each owner to act separately. All information and documents<br />
that we are required to send you will be sent to the<br />
first named owner. This Annuity does not provide a right of<br />
Contract described herein is no longer available for sale.<br />
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