XTra Credit Premier - Prudential Annuities

discriminate unfairly between Annuity purchasers if and when we reduce the portion of the Insurance Charge attributed to the chargecovering administrative costs.PURCHASING YOUR ANNUITYWHAT ARE OUR REQUIREMENTS FOR PURCHASING THE ANNUITY?Initial Purchase Payment: You must make a minimum initial Purchase Payment of $1,000. 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 $1,000 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: The Owner must be age 80 or under as of the Issue Date of the Annuity. If the Annuity is owned jointly, the oldestof the Owners must be age 80 or under on the Issue Date. If the Annuity is owned by an entity, the Annuitant must be age 80 or underas of the Issue Date. You should consider your need to access your Account Value and whether the Annuity’s liquidity features willsatisfy that need. If you take a distribution prior to age 59 ½, you may be subject to a 10% penalty in addition to ordinary incometaxes on any gain. The availability of certain optional benefits may vary based on the age of the Owner on the Issue Date of theAnnuity.Additional Purchase Payments may be made at any time before the Annuity Date as long as the oldest Owner or Annuitant (ifthe Annuity is entity owned) is not over age 80.Special Considerations for Purchasers of Bonus or Credit Products• This Annuity features the same Insurance Charge as many of American Skandia’s other variable annuities and does not chargean additional amount for the XTra Credit SM feature. However, if you make a withdrawal that exceeds the annual freewithdrawal amount or choose to surrender your Annuity, the contingent deferred sales charge (CDSC) on this Annuity is higherand is deducted for a longer period of time as compared to our other variable annuities. If you expect that you will need toaccess your Account Value during the CDSC period and the liquidity provisions are insufficient to satisfy that need, then thisAnnuity may be more expensive than other variable annuities.• The XTra Credit SM amount is included in your Account Value. However, American Skandia may take back the original XTraCredit SM amount applied to your Purchase Payment if you die, or elect to withdraw all or a portion of your Account Value underthe medically-related waiver provision, within 12 months of having received an XTra Credit SM amount. In either situation, thevalue of the XTra Credit SM amount could be substantially reduced. However, any investment gain on the XTra Credit SM amountwill not be taken back. Additional conditions and restrictions apply.• We offer other annuities through investment professionals associated with other firms, where we apply an XTra Credit SM toyour annuity with each purchase payment you make. The XTra Credit SM amount we apply to purchase payments on thoseannuities is initially higher than on this Annuity but reduces over time and only applies during the first six annuity years. Thetotal asset-based charges on those annuities are higher during the first 10 years but are lower than this Annuity after the 10 thyear. The CDSC is also higher and is deducted for a longer period of time than on this Annuity; however the CDSC on thoseannuities applies from the issue date of the annuity, not separately to each purchase payment.Contract described herein is no longer available for sale.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."32