XTra Credit Premier - Prudential Annuities

The variable annuity payment options are described in greater detail in a separate prospectus which will be provided to you at the timeyou elect one of the variable annuity payment options.Adjustable Annuity PaymentsWe may make an adjustable annuity payment option available. Adjustable annuity payments are calculated similarly to fixed annuitypayments except that on every fifth (5 th ) anniversary of receiving annuity payments, the annuity payment amount is adjusted upwardor downward depending on the rate we are currently crediting to annuity payments. The adjustment in the annuity payment amountdoes not affect the duration of remaining annuity payments, only the amount of each payment.DEATH BENEFITWHAT TRIGGERS THE PAYMENT OF A DEATH BENEFIT?The Annuity provides a Death Benefit during its accumulation period. If the Annuity is owned by one or more natural persons,the Death Benefit is payable upon the first death of an Owner. If the Annuity is owned by an entity, the Death Benefit ispayable upon the Annuitant's death, if there is no Contingent Annuitant. If a Contingent Annuitant was designated before theAnnuitant's death and the Annuitant dies, then the Contingent Annuitant becomes the Annuitant and a Death Benefit will not be paidat that time. The person upon whose death the Death Benefit is paid is referred to below as the "decedent."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. Under certain circumstances, your Death Benefit may bereduced by the amount of any Credits or Target Value Credits we applied to your Purchase Payments (see "How are CreditsApplied to My Account Value" and "Recovery of Target Value Credits").The basic Death Benefit depends on the decedent’s age on the date of death:If death occurs during the first ten (10) Annuity Years: The Death Benefit is the greater 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 tenth (10 th ) Annuity Year: The Death Benefit is your Account Value.OPTIONAL DEATH BENEFITSAmerican Skandia offered the Guaranteed Minimum Death Benefit with a 7.2% accumulation rate between May 1, 2000 andJanuary 22, 2001 and a Guaranteed Minimum Death Benefit with a 5.0% accumulation rate between May 1, 2000 andNovember 15, 2002, in those jurisdictions where we received regulatory approval. Additionally, American Skandia offered theEnhanced Beneficiary Protection Optional Death Benefit between May 1, 2001 and November 15, 2002, in those jurisdictionswhere we received regulatory approval. For Annuity Owners who purchased any of these optional Death Benefits during theapplicable period, the optional Death Benefits will be calculated as described below. These optional Death Benefits were onlyoffered and must have been elected at the time you purchased your Annuity.You can purchase either of two optional Death Benefits with your Annuity to provide an enhanced level of protection for yourbeneficiaries.Contract described herein is no longer available for sale.NOTE: You may not elect the Enhanced Beneficiary Protection Optional Death Benefit if you have elected any other OptionalDeath Benefit.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 your50