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Discovery Classic is a fixed annuity contract that offers guaranteed principal, steady growth with a guaranteed interest rate, and the power of tax deferral. Plus you receive an additional interest rate for each purchase payment made during the first year of your annuity contract, and an increased interest rate when your account value reaches certain predetermined amounts. When it’s time to withdraw your money, Discovery Classic has a number of payout options, including an income stream for life based on your contract value. Click on any of the features listed below to find out more.
- Minimum Investment Amount
- Protection Against Market Uncertainty
- Protection For Your Beneficiaries
- Withdrawals
- Quarterly Reports
Minimum
Investment Amount
After an initial minimum investment of $5,000, you can add to your contract
at any time with minimum subsequent payments of $2,000 ($1,000 for qualified
contracts).
Protection
Against Market Uncertainty
Your principal is guaranteed by Prudential, and a fixed rate of return
protects your assets from market uncertainty. Discovery Classic also offers
a provision that allows you to withdraw all or a portion of a purchase
payment without charge if its renewal interest rate falls below a predetermined
rate.
Protection For Your Beneficiaries
Discovery Classic will pay your designated beneficiaries 100% of the contract
value, less any withdrawals (and withdrawal charges), should you die before
your annuity payout begins.
Withdrawals
Withdrawals are subject to a withdrawal charge in the first six years.
In each contract year the withdrawal charge-free amount equals 10% of
the contract fund. Withdrawals made during the accumulation phase are
treated first as a taxable distribution of gain. Withdrawals made prior
to age 59½ may be subject to a 10% federal income tax penalty.
Quarterly
Reports
You’ll receive a consolidated personalized statement at the end of every
quarter.