Strategic Partners Plus 3 - Prudential Annuities

3: WHAT KIND OF PAYMENTS WILL IRECEIVE DURING THE INCOME PHASE?(ANNUITIZATION) continuedPAYMENT PROVISIONS WITHOUT THE GUARANTEED MINIMUM INCOME BENEFITWe make the income plans described below available at any time before the annuity date. These plans are called “annuity options”or “settlement options.” During the income phase, all of the annuity options under this contract are fixed annuity options. Thismeans that your participation in the variable investment options ends on the annuity date. If an annuity option is not selected by theannuity date, the Life Income Annuity Option (Option 2, described below) will automatically be selected unless prohibited byapplicable law. GENERALLY, ONCE THE ANNUITY PAYMENTS BEGIN, THE ANNUITY OPTION CANNOT BECHANGED AND YOU CANNOT MAKE WITHDRAWALS. IN ADDITION TO THE ANNUITY PAYMENT OPTIONSDISCUSSED IN THIS SECTION, PLEASE NOTE THAT IF YOU CHOOSE AN OPTIONAL LIFETIME WITHDRAWALBENEFIT, THERE ARE ADDITIONAL ANNUITY PAYMENT OPTIONS THAT ARE ASSOCIATED WITH THATBENEFIT. SEE SECTION 5 OF THIS PROSPECTUS FOR ADDITIONAL DETAILS.Option 1Annuity Payments for a Fixed Period: Under this option, we will make equal payments for the period chosen, up to 25 years (butnot to exceed life expectancy). The annuity payments may be made monthly, quarterly, semiannually, or annually, as you choose,for the fixed period. If the annuitant dies during the income phase, payments will continue to the beneficiary for the remainder ofthe fixed period or, if the beneficiary so chooses, we will make a single lump-sum payment. The amount of the lump sum paymentis determined by calculating the present value of the unpaid future payments. This is done by using the interest rate used tocompute the actual payments. The interest rate will be at least 3% a year.Option 2Life Income Annuity Option: Under this option, we will make annuity payments monthly, quarterly, semiannually, or annually aslong as the annuitant is alive. If the annuitant dies before we have made 10 years worth of payments, we will pay the beneficiary inone lump sum the present value of the annuity payments scheduled to have been made over the remaining portion of that 10 yearperiod, unless we were specifically instructed that such remaining annuity payments continue to be paid to the beneficiary. Thepresent value of the remaining annuity payments is calculated by using the interest rate used to compute the amount of the original120 payments. The interest rate will be at least 3% a year.If an annuity option is not selected by the annuity date, this is the option we will automatically select for you.OTHER ANNUITY OPTIONSWe currently offer a variety of other annuity options not described above. At the time annuity payments are chosen, we may makeavailable to you any of the fixed annuity options that are offered at your annuity date.TAX CONSIDERATIONSIf your contract is held under a tax-favored plan, you should consider the required minimum distribution provisions under the taxlaw when selecting your annuity option.GUARANTEED MINIMUM INCOME BENEFITThe Guaranteed Minimum Income Benefit (GMIB), is an optional feature that guarantees that once the income period begins, yourincome payments will be no less than the GMIB protected value applied to the GMIB guaranteed annuity purchase rates. If youwant the Guaranteed Minimum Income Benefit, you must elect it when you make your initial purchase payment. Once elected, theGuaranteed Minimum Income Benefit cannot be revoked. You may not elect both GMIB and the Lifetime Five Income Benefit.The GMIB protected value is calculated daily and is equal to the GMIB roll-up until the GMIB roll-up either reaches its cap or ifwe stop applying the annual interest rate based on the age of the annuitant, number of contract anniversaries, or number of yearssince the last GMIB reset, as described below. At this point, the GMIB protected value will be increased by any subsequentinvested purchase payments and reduced proportionally by withdrawals.Contract described herein is no longer available for sale.The Guaranteed Minimum Income Benefit is subject to certain restrictions described below.▪ The annuitant must be 75 or younger in order for you to elect the Guaranteed Minimum Income Benefit.▪ If you choose the Guaranteed Minimum Income Benefit, we will impose an annual charge equal to 0.50% for contracts sold onor after May 1, 2004 (0.45% for all other contracts) of the average GMIB protected value described below. The maximumGMIB charge is 1.00% of average GMIB protected value. Please note that the charge is calculated based on average GMIBprotected value, not Contract Value. Thus, for example, the fee would not decline on account of a reduction in Contract Value.▪ Under the contract terms governing the GMIB, we can require GMIB participants to invest only in designated underlyingmutual funds or can require GMIB participants to invest according to an asset allocation model. Owners electing this benefitcurrently must allocate contract value to one or more of the following asset allocation portfolios of the Advanced Series Trust40