What we will cover in this review:
In this product review, we will be discussing the Prudential HDLI (Highest Daily Lifetime Income) v3.0 optional annuity benefit, including:
- What it is
- How it works
- Where it works best
- Where it may not work well
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With people living longer these days, one of the top concerns on the minds of retirees, as well as those who are still planning for retirement, is having enough income to get through. This is a very valid worry, though, as many people could realistically spend 20, 30 or more years in retirement. So, in order to continue paying your everyday living expenses, it is imperative that you have an income you can count on.
Through a Prudential Premier Retirement variable annuity that also includes the Highest Daily Lifetime Income benefit, you can achieve guaranteed daily growth of your retirement income – regardless of how the roller coaster stock market performs. In addition to that, each day, you will also have the opportunity for added growth, based on the investment performance of your account.
Annuity and Retirement Income Planning Information You Can Trust
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We’ve been doing this for a number of years now – far longer than most of our “copycat” competitors – and because of that, we have come to be known as a highly trusted source of annuity information online.
If you’ve been looking for information about annuities via the Internet, then it is likely that you have come across many conflicting details about these financial vehicles. This isn’t really very surprising, though, because there are a lot of opinions (both positive and otherwise) about these products floating around the Internet.
If you have landed here on our website in search of more details regarding the Prudential HDLI (Highest Daily Lifetime Income) v3.0 optional annuity benefit, you are definitely in the right place. In fact, we dare say that our website is the only place online where you can find out all of the information – the good, the bad, and yes, even the ugly. Knowing the whole picture, though, can help you in determining whether this product will be right for you.
Opening Thoughts on the Prudential HDLI v3.0 Benefit
Prudential has been a leader in the insurance industry for more than 100 years. Prudential Financial, Inc. companies include The Prudential Insurance Company of America, which is one of the largest life insurance companies in the United States.
The company is considered to be strong and stable from a financial standpoint, with more than $1.33 trillion in assets under management, and roughly $3.7 trillion of gross life insurance in force worldwide.
Through its subsidiaries, Prudential serves both individual and institutional customers in more than 40 countries. The company is ranked 1st in the “Insurance: Life and Health” category of Fortune magazine’s 2017 list of the World’s Most Admired Companies.
As of early 2019, the Prudential Insurance Company of America had high ratings from the insurance rating agencies, including a(n):
- A+ from A.M. Best
- AA- from Standard and Poor’s
- A1 from Moody’s Investor Services
- AA- from Fitch Ratings
If you own – or you are considering the purchase of – a variable annuity, then there are some things that you should know. This is particularly the case as the stock market has been exceptionally volatile over the past few years.
Typically, variable annuities are designed to provide two primary benefits to their holders – growth of principal in the account, and the production of retirement income. However, the reality is that variable annuities are not really all that good at producing retirement income.
One of the reasons for this is because of the risk that these types of annuities can present to their investors – as well as to the underlying insurance carriers that offer them. Also, because the value that is inside a variable annuity fluctuates so much, it is typical for an offering insurer to guarantee a lower amount of retirement income from a variable annuity – sometimes even less than from vehicles that are considered “safer” such as fixed annuities.
So, for every dollar that is invested into a variable annuity, it could very well offer you a lower amount of income than would a fixed annuity, for the very same amount of money deposited. Therefore, for this reason, if your primary reason for purchasing an annuity is future retirement income, then a variable annuity may not be the best option in this case.
That’s where an income benefit like the HDLI v3.0 can come in. For example, according to Prudential’s product literature for this income benefit, a variable annuity with Highest Daily Offers a number of nice advantages, such as:
- Guaranteed lifetime income that grows daily for the first ten years, or until lifetime income begins, whichever comes first
- Daily opportunities to lock in your account highs for added growth
- Protection of retirement income from market downturns
- A range of investments to choose from
- A built-in standard death benefit for your beneficiaries
So, what exactly is the Prudential HDLI v3.0 income benefit, then?
The Highest Daily Lifetime Income benefit from Prudential can help the holders of certain Prudential variable annuities to increase their retirement income, as well as to protect it through market volatility, and to guarantee that it lasts for your lifetime.
Before we get into the gritty details, here are some necessary legal disclosures…
This is an independent product review. It is not a recommendation to purchase or to sell an annuity and/or optional benefits. Prudential has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant solely to be an independent review at the request of our readers so that they may see out perspective when breaking down the positives and the negatives of this particular annuity benefits rider. Before purchasing any type of insurance and/or investment product, it is important that you do your own due diligence, and that you consult a properly licensed professional if you should have any specific questions that relate to your individual situation. All of the names, marks, and materials that were used for this product review are the property of their respective owners.
How the Prudential HDLI v3.0 Income Benefit Works
Even though the market may go up and down regularly, the Prudential HDLI v3.0 Income benefit can help you to better ensure that income will available when you need it the most. With this benefit added to your Prudential variable annuity, each day that the annuity reaches a new high, that value is locked in for retirement income purposes, and it immediately starts growing at an annual compounded rate for the first ten years, or until you take your first lifetime withdrawal – whichever happens first.
In addition, after ten years, your highest daily account values can continue to grow for income purposes until you start to take lifetime withdrawals. Even if markets go down, your retirement income will remain locked in at its highest daily value and will continue to grow.
It’s important to note, though, that even while this can initially sound like the best of all worlds, there are some items to be mindful of. For instance, withdrawals that are in excess of the annual income amount can have an impact on the value of your benefit, and can also affect the certainty of your income.
In addition, the annuity’s account value is separate from the protected withdrawal value and is not guaranteed. Likewise, the account value of your annuity is not guaranteed, can fluctuate, and could also lose value.
On top of that, there is an additional premium cost to add the HDLI v3.0 benefit to your annuity. So, it is important to factor in just how much the added charges can ultimately end up costing you overall.
For an updated rate sheet and prospectus for the Prudential Premier Retirement Variable Annuities that offer the HDLI v3.0, go HERE.
Want to know all of the in’s and outs of variable annuities? Download your free variable annuity guide here.
Who Should Consider Adding the Prudential HDLI v3.0 to their Prudential Premier Variable Annuity?
Although this income benefit may not the right for everyone, it could be a good option for you if you are concerned about running out of income in the future. That is because it will help to ensure that your gains are locked in and that your money is protected in downward moving market conditions. In addition, this optional feature can also guarantee that your income won’t run out and that it last for your entire lifetime – regardless of how long that may be.
The Annuity Gator’s End Take on the Prudential HDLI v3.0
Where it works the best:
You may want to consider the Prudential HDLI v3.0 if you:
- Own, or plan to purchase, an associated Prudential Premier variable annuity
- Are looking for a way to attain guaranteed income for your life, no matter how long that may be
Where it may not work well:
This benefit may not be a consideration if you:
- Do not plan to purchase an associated Prudential premier variable annuity
- Do not plan to use the income option on the associated annuity
Do You Still Have Questions Regarding the Securian Life MyPath Ascend 2.0 Lifetime Income Benefit?
Even though you have read through this product review, as well as the associated Prudential materials that discuss the HDLI v3.0, there is a chance that you might still have some questions and/or concerns.
If that is the case, feel free to reach out to use our secure contact form here or toll-free at (888) 440-2468 and ask to speak with one of our trained annuity experts who can walk you through more detail.
The Annuity Gator
P.S If you would like to read more of our Prudential annuity reviews here are some links to check out:
- Independent Review of the Prudential Premier Advisor Variable Annuity
- Independent Review of the Prudential C Series Variable Annuity
- Independent Review of the Prudential Premier Retirement B / HDI v3.0 Annuity
- Independent Review of The Prudential L Series Variable Annuity
- Independent Review of the Prudential B Series Variable Annuity
- Independent Review of the Prudential Defined Income Variable Annuity