XTra Credit FOUR - Prudential Annuities

You must notify us at the time you apply for an Annuity if you are a member of the designated class. American Skandia is notresponsible for monitoring whether you qualify as a member of the designated class. Failure to inform us that you qualify as amember of the designated class may result in your Annuity receiving fewer Credits than would otherwise be applied to yourAnnuity.HOW ARE CREDITS APPLIED TO MY ACCOUNT VALUE?Each Credit is allocated to your Account Value at the time the Purchase Payment is applied to your Account Value. The amount ofthe Credit is allocated to the investment options in the same ratio as the applicable Purchase Payment is applied.Examples of Applying CreditsInitial Purchase PaymentAssume you make an initial Purchase Payment of $2,500. We would apply a 1.5% Credit to your Purchase Payment and allocate theamount of the Credit ($37.50 = $2,500 X .015) to your Account Value in the proportion that your Account Value is allocated.Additional Purchase Payment (at same breakpoint)Assume that you make an additional Purchase Payment of $5,000. Because your cumulative Purchase Payments are less than the nextbreakpoint ($10,000), we would apply a 1.5% Credit to your Purchase Payment and allocate the amount of the Credit ($75.00 =$5,000 X .015) to your Account Value.Additional Purchase Payment (at higher breakpoint)Assume that you make an additional Purchase Payment of $400,000. Because your cumulative Purchase Payments are now $407,500(greater than the next breakpoint), we would apply a 4.0% Credit to your Purchase Payment and allocate the amount of the Credit($16,000 = $400,000 X .04) to your Account Value.This Annuity features the same Insurance Charge as many of American Skandia’s other variable annuities and does not charge anadditional amount for the XTra Credit SM feature. However, the amount of any Credits applied to your Account Value can berecovered by American Skandia under certain circumstances:• any Credits applied to your Account Value on Purchase Payments made within the 12 months before the date of death will berecovered.• the amount available under the medically-related surrender portion of the Annuity will not include the amount of any Creditspayable on Purchase Payments made within 12 months of the date the Annuitant first became eligible for the medically-relatedsurrender.• if you elect to "free-look" your Annuity, the amount returned to you will not include the amount of any Credits.The value of the XTra Credit SM amount will be substantially reduced if American Skandia recovers the XTra Credit SM amount underthese circumstances. However, any investment gain on the XTra Credit SM amount will not be taken back. We do not deduct a CDSCin any situation where we recover the XTra Credit SM amount.Examples of Recovering CreditsThe following are hypothetical examples of how Credits could be recovered by American Skandia. These examples do not coverevery potential situation.Recovery from payment of Death Benefits1. Assume you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 inthe 6 th month after the Issue Date. Both of the Purchase Payments received a 4.0% Credit, for a total of $2,400. If the DeathBenefit becomes payable in the 9 th month after the Issue Date, the amount of the Death Benefit would be reduced by the entireamount of the prior Credits ($2,400).2. Assume you purchase your Annuity with an initial Purchase Payment of $50,000. You make an additional Purchase of $10,000 inthe 6 th month after the Issue Date. Both of the Purchase Payments received a 4.0% Credit, for a total of $2,400. If death occurs inthe 16 th month after the Issue Date, the amount of the Death Benefit would be reduced but only in the amount of those Creditsapplied within the previous 12-months. Since the initial Purchase Payment (and the Credits that were applied) occurred morethan 12-months before the date of death, the Death Benefit would not be reduced by the amount of the Credits applied to theinitial Purchase Payment. However, the $10,000 additional Purchase Payment was made within 12-months of the date of death.Therefore, the amount of the Death Benefit would be reduced by the amount of the Credits payable on the additional PurchasePayment ($400).3. NOTE: If the Death Benefit would otherwise have been equal to the Purchase Payments minus any proportional withdrawals dueto poor investment performance, we will not reduce the amount of the Death Benefit by the amount of the Credits as shown inExample 2 above.Contract described herein is no longer available for sale.32