Stagecoach Flex - Prudential Annuities

BASIC DEATH BENEFITThe Annuity provides a basic Death Benefit at no additional charge. The Insurance Charge we deduct daily from your Account Valueallocated to the Sub-accounts is used, in part, to pay us for the risk we assume in providing the basic Death Benefit guarantee underthe Annuity. The Annuity also offers two different optional Death Benefits. Either benefit can be purchased for an additional charge.The additional charge is deducted to compensate American Skandia for providing increased insurance protection under the optionalDeath Benefits. Notwithstanding the additional protection provided under the optional Death Benefits, the additional cost has theimpact of reducing the net performance of the investment options.The basic Death Benefit depends on the decedent's age on the date of death:If death occurs before the earlier of the decedent's age 90 or the end of the tenth Annuity Year: The Death Benefit is thegreater of:• The sum of all Purchase Payments less the sum of all withdrawals; and• The sum of your Account Value in the variable investment options and your Interim Value in the Fixed Allocations.If death occurs after the earlier of the decedent's age 90 or the tenth Annuity Year: The Death Benefit is your AccountValue.OPTIONAL DEATH BENEFITSTwo optional Death Benefits are offered for purchase with your Annuity to provide an enhanced level of protection for yourbeneficiaries.Currently, these benefits are only offered and must be elected at the time that you purchase your Annuity. We may, at a laterdate, allow existing Annuity Owners to purchase either of the optional Death Benefits subject to our rules and any changes orrestrictions in the benefits. Certain terms and conditions may differ if you purchase your Annuity as part of an exchange,replacement or transfer, in whole or in part, from any other Annuity we issue.Enhanced Beneficiary Protection Optional Death BenefitThe Enhanced Beneficiary Protection Optional Death Benefit can provide additional amounts to your Beneficiary that may be used tooffset federal and state taxes payable on any taxable gains in your Annuity at the time of your death. Whether this benefit isappropriate for you may depend on your particular circumstances, including other financial resources that may be available to yourBeneficiary to pay taxes on your Annuity should you die during the accumulation period. No benefit is payable if death occurs on orafter the Annuity Date.The Enhanced Beneficiary Protection Optional Death Benefit provides a benefit that is payable in addition to the basic DeathBenefit. If the Annuity has one Owner, the Owner must be age 75 or less at the time the benefit is purchased. If the Annuity has jointOwners, the oldest Owner must be age 75 or less. If the Annuity is owned by an entity, the Annuitant must be age 75 or less.Calculation of Enhanced Beneficiary Protection Optional Death BenefitIf you purchase the Enhanced Beneficiary Protection Optional Death Benefit, the Death Benefit is calculated as follows:1. the basic Death Benefit described above;PLUS2. 40% of your "Growth" under the Annuity, as defined below.Contract described herein is no longer available for sale."Growth" means the sum of your Account Value in the variable investment options and your Interim Value in the Fixed Allocations,minus the total of all Purchase Payments reduced by the sum of all proportional withdrawals."Proportional withdrawals" are determined by calculating the percentage of your Account Value that each prior withdrawalrepresented when withdrawn.29