Stagecoach Flex - Prudential Annuities

you select a variable payment option that we may offer, then the amount of your benefits will reflect changes in the value of yourAnnuity and will continue to be subject to an insurance charge.EXCEPTIONS/REDUCTIONS TO FEES AND CHARGESWe may reduce or eliminate certain fees and charges or alter the manner in which the particular fee or charge is deducted. Forexample, we may reduce or eliminate the amount of the Annual Maintenance Fee or reduce the portion of the total Insurance Chargethat is deducted as an Administration Charge. Generally, these types of changes will be based on a reduction to our sales,maintenance or administrative expenses due to the nature of the individual or group purchasing the Annuity. Some of the factors wemight consider in making such a decision are: (a) the size and type of group; (b) the number of Annuities purchased by an Owner; (c)the amount of Purchase Payments or likelihood of additional Purchase Payments; and/or (d) other transactions where sales,maintenance or administrative expenses are likely to be reduced. We will not discriminate unfairly between Annuity purchasers if andwhen we reduce the portion of the Insurance Charge attributed to the charge covering administrative costs.PURCHASING YOUR ANNUITYWHAT ARE OUR REQUIREMENTS FOR PURCHASING THE ANNUITY?Initial Purchase Payment: You must make a minimum initial Purchase Payment of $15,000. However, if you decide to makepayments under a systematic investment or "bank drafting" program, we will accept a lower initial Purchase Payment provided that,within the first Annuity Year, you make at least $15,000 in total Purchase Payments.Where allowed by law, initial Purchase Payments in excess of $1,000,000 require our approval prior to acceptance. We may applycertain limitations and/or restrictions on the Annuity as a condition of our acceptance, including limiting the liquidity features or theDeath Benefit protection provided under the Annuity, limiting the right to make additional Purchase Payments, changing the numberof transfers allowable under the Annuity or restricting the Sub-accounts that are available. Other limitations and/or restrictions mayapply.Except as noted below, Purchase Payments must be submitted by check drawn on a U.S. bank, in U.S. dollars, and made payable toAmerican Skandia. Purchase Payments may also be submitted via 1035 exchange or direct transfer of funds. Under certaincircumstances, Purchase Payments may be transmitted to American Skandia via wiring funds through your investment professional'sbroker-dealer firm. Additional Purchase Payments may also be applied to your Annuity under an arrangement called "bank drafting"where you authorize us to deduct money directly from your bank account. We may reject any payment if it is received in anunacceptable form. Our acceptance of a check is subject to our ability to collect funds.Age Restrictions: There is no age restriction to purchase the Annuity. However, the basic Death Benefit provides greater protectionfor a period of ten (10) years from the Issue Date but not beyond age 90. There is no Contingent Deferred Sales Charge deductedupon surrender or partial withdrawal. However, if you take a distribution prior to age 59 ½, you may be subject to a 10% penalty inaddition to ordinary income taxes on any gain. The availability of certain optional benefits may vary based on the age of the Owneron the Issue Date of the Annuity.Owner, Annuitant and Beneficiary Designations: On your Application, we will ask you to name the Owner(s), Annuitant and oneor more Beneficiaries for your Annuity.• Owner: The Owner(s) holds all rights under the Annuity. You may name more than one Owner in which case all ownershiprights are held jointly. However, this Annuity does not provide a right of survivorship. Refer to the Glossary of Terms for acomplete description of the term "Owner."• Annuitant: The Annuitant is the person we agree to make annuity payments to and upon whose life we continue to make suchpayments. You must name an Annuitant who is a natural person. We do not accept a designation of joint Annuitants during theaccumulation period. Where allowed by law, you may name one or more Contingent Annuitants. A Contingent Annuitant willbecome the Annuitant if the Annuitant dies before the Annuity Date. Please refer to the discussion of "Considerations forContingent Annuitants" in the Tax Considerations section of the Prospectus.• Beneficiary: The Beneficiary is the person(s) or entity you name to receive the death benefit. If no beneficiary is named thedeath benefit will be paid to you or your estate.Contract described herein is no longer available for sale.Your right to make certain designations may be limited if your Annuity is to be used as an IRA or other "qualified" investment that isgiven beneficial tax treatment under the Code. You should seek competent tax advice on the income, estate and gift tax implicationsof your designations.17