XTra Credit Premier - Prudential Annuities

MAY I MAKE SCHEDULED PAYMENTS DIRECTLY FROM MY BANK ACCOUNT?You can make additional Purchase Payments to your Annuity by authorizing us to deduct money directly from your bank account andapplying it to your Annuity. This type of program is often called "bank drafting". We call our bank drafting program "AmericanSkandia's Systematic Investment Plan." Purchase Payments made through bank drafting may only be allocated to the variableinvestment options when applied. Bank drafting allows you to invest in your Annuity with a lower initial Purchase Payment, as longas you authorize payments that will equal at least $1,000 during the first 12 months of your Annuity. We may suspend or cancel bankdrafting privileges if sufficient funds are not available from the applicable financial institution on any date that a transaction isscheduled to occur.MAY I MAKE PURCHASE PAYMENTS THROUGH A SALARY REDUCTION PROGRAM?These types of programs are only available with certain types of qualified investments. If your employer sponsors such a program, wemay agree to accept periodic Purchase Payments through a salary reduction program as long as the allocations are made only tovariable investment options and the periodic Purchase Payments received in the first year total at least $1,000.MANAGING YOUR ACCOUNT VALUEHOW AND WHEN ARE PURCHASE PAYMENTS INVESTED?(See "Valuing Your Investment" for a description of our procedure for pricing initial and subsequent Purchase Payments.)Initial Purchase Payment: Once we accept your application, we invest your net Purchase Payment in the Annuity. The net PurchasePayment is your initial Purchase Payment minus any tax charges that may apply. On your application we ask you to provide us withinstructions for allocating your Account Value. You can allocate Account Value to one or more variable investment options or FixedAllocations.In those states where we are required to return your Purchase Payment if you exercise your right to return the Annuity, we initiallyallocate all amounts that you choose to allocate to the variable investment options to the AST Money Market Sub-account. At the endof the right to cancel period we will reallocate your Account Value according to your most recent allocation instructions. Wherepermitted by law, we will allocate your Purchase Payments according to your initial instructions, without temporarily allocating to theAST Money Market Sub-account. To do this, we will ask that you execute our form called a "return waiver" that authorizes us toallocate your Purchase Payment to your chosen Sub-accounts immediately. If you submit the "return waiver" and then decide toreturn your Annuity during the right to cancel period, you will receive your current Account Value, minus the amount of any Credits,which may be more or less than your initial Purchase Payment (see "May I Return the Annuity if I Change my Mind?").Subsequent Purchase Payments: We will allocate any additional Purchase Payments you make according to your current allocationinstructions. If any rebalancing or asset allocation programs are in effect, the allocation should conform with such a program. Weassume that your current allocation instructions are valid for subsequent Purchase Payments until you make a change to thoseallocations or request new allocations when you submit a new Purchase Payment.HOW DO I RECEIVE CREDITS?We apply a "Credit" to your Annuity’s Account Value each time you make a Purchase Payment. The amount of the Credit is payablefrom our general account. The amount of the Credit depends on the cumulative amount of Purchase Payments you have made to yourAnnuity, payable as a percentage of each specific Purchase Payment, according to the tables below:The Credits shown below are in effect as of October 23, 2000 in those states where approved.Cumulative Purchase PaymentsCreditBetween $1,000 and $9,999.99 1.5%Between $10,000 and $4,999,999.99 4.0%Greater than $5,000,000 5.0%Contract described herein is no longer available for sale.The Credits shown below apply to all Annuities issued before October 23, 2000 and to Annuities issued after October 23, 2000 inthose states where the above table has not been approved.Cumulative Purchase PaymentsCreditBetween $1,000 and $9,999.99 1.5%Between $10,000 and $999,999.99 3.0%Between $1,000,000 and $4,999,999.99 4.0%Greater than $5,000,000 5.0%34