PRUCO LIFE INSURANCE COMPANY

PRUCO LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

PRUCO LIFE OF NEW JERSEY FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT

PRUDENTIAL PREMIER® INVESTMENT VARIABLE ANNUITY

 

 

Supplement dated July 14, 2016

To

Prospectuses dated April 29, 2016

 

This Prospectus Supplement (this “Supplement”) should be read and retained with the prospectus for the Prudential Premier® Investment Variable Annuity.  This Supplement is intended to update certain information in the Annuity Prospectus you own and is not intended to be a prospectus or offer for any other Annuity that you do not own.  Defined terms used herein and not otherwise defined herein shall have the meanings given to them in your Prospectus and Statement of Additional Information (SAI).  If you would like another copy of the current prospectus or SAI, please call us at 1-888-PRU-2888, or visit www.prudentialannuities.com.

 

We are issuing this Supplement to reflect changes to the Contingent Deferred Sales Charge (CDSC) schedule for Prudential Premier® Investment Variable Annuity B Series Applications signed on or after August 8, 2016, and to revise Appendix B for Prudential Premier® Investment Variable Annuity B Series Applications signed on or after August 8, 2016.

 

 
 

 

I.	For B Series Annuity Applications signed on or after August 8, 2016, the table captioned, “Annuity Owner Transaction Expenses” in the section captioned, “Summary of Contract Fees and Charges” is revised and restated as follows:

 

SUMMARY OF CONTRACT FEES AND CHARGES

 

Below is a description of fees and expenses that you will pay when buying, owning and surrendering one of the Annuities. Also described are fees and expenses at the time you surrender an Annuity, take certain partial withdrawals or transfer Account Value between Investment Options. State premium taxes also may be deducted. Important additional information about these fees and expenses is contained in “Fees, Charges and Deductions” later in this Prospectus.

ANNUITY OWNER TRANSACTION EXPENSES
CONTINGENT DEFERRED SALES CHARGE (CDSC) 1
Age of Purchase Payment Being Withdrawn	Percentage Applied Against Purchase Payment being Withdrawn
	B SERIES	C SERIES
Less than 1 year old	7.0%
1 year old or older, but not yet 2 years old	7.0%
2 years old or older, but not yet 3 years old	6.0%
3 years old or older, but not yet 4 years old	6.0%	None
4 years old or older, but not yet 5 years old	5.0%
5 years old or older	0.0%

 

Transfer Fee 2 : $10 (currently, after the 20 th transfer each Annuity Year)

 

Tax Charge: 0% - 3.5%

 

1   The years referenced in the CDSC table above refer to the length of time since a Purchase Payment was made (i.e. the age of the Purchase Payment). CDSCs are applied against the Purchase Payment(s) being withdrawn. The appropriate percentage is multiplied by the Purchase Payment(s) being withdrawn. Purchase Payments are withdrawn on a “first-in, first-out” basis.

 

2   Transfers in connection with a rebalancing or dollar cost averaging program do not count toward the 20 free transfers in an Annuity Year.

 

 

 

 

 

 

II.	Expense Examples

 

In the section captioned “Expense Examples”, the following Expense Examples for the B Series and C Series are added:

 

For Applications signed on or after August 8, 2016, Expense Examples are provided as follows:

B Series
	If you surrender your annuity at the end of the applicable time period:								If you do not surrender your annuity at the end of the applicable time period:
	1 yr		3 yrs		5 yrs		10 yrs		1 yr			3 yrs		5 yrs		10 yrs
Assuming maximum fees and expenses of any of the portfolios available with the benefit	$1,629		$3,280		$4,799		$7,817		$929			$2,680		$4,299		$7,817
Assuming minimum fees and expenses of any of the portfolios available with the benefit	$955		$1,374		$1,807		$2,706		$255			$744		$1,307		$2,706

C Series
	If you surrender your annuity at the end of the applicable time period:								If you do not surrender your annuity at the end of the applicable time period:
	1 yr	3 yrs		5 yrs		10 yrs			1 yr		3 yrs		5 yrs		10 yrs
Assuming maximum fees and expenses of any of the portfolios available with the benefit	$952	$2,743		$4,393		$7,955			$952		$2,743		$4,393		$7,955
Assuming minimum fees and expenses of any of the portfolios available with the benefit	$280	$848		$1,431		$2,952			$280		$848		$1,431		$2,952

 

III.	In the section captioned “Fees, Charges and Deductions”, the paragraphs under “EXAMPLES” are replaced in their entirety as follows:

 

EXAMPLES

 

These examples are designed to show you how the CDSC is calculated. They do not take into account any other fees and charges. The examples illustrate how the CDSC would apply to reduce your Account Value based on the timing and amount of your withdrawals. They also illustrate how a certain amount of your withdrawal, the “Free Withdrawal Amount,” is not subject to the CDSC. The Free Withdrawal Amount is equal to 10% of all Purchase Payments currently subject to a CDSC in each year and is described in more detail in “Access to Account Value,” later in this Prospectus.

 

Assume you purchase your B Series Annuity with a $75,000 initial Purchase Payment and you make no additional Purchase Payments for the life of your Annuity.

 

Example 1

 

Assume the following:

 

·	two years after the purchase, your Unadjusted Account Value is $85,000 (your Purchase Payment of $75,000 plus $10,000 of investment gain);

 

·	the free withdrawal amount is $7,500 (10% of $75,000);

 

·	the applicable CDSC is 6%.

 

If you request a withdrawal of $50,000, $7,500 is not subject to the CDSC because it is the free withdrawal amount. The remaining amount of your withdrawal is subject to the 6% CDSC. The CDSC in this example is 6% of $42,500, or $2,550.

 

Gross Withdrawal or Net Withdrawal . You can request either a gross withdrawal or a net withdrawal. In a gross withdrawal, you request a specific withdrawal amount with the understanding that the amount you actually receive is reduced by any applicable CDSC and/or tax withholding. In a net withdrawal, you request a withdrawal for an exact dollar amount with the understanding that any applicable deduction for CDSC and/or tax withholding is taken from your Unadjusted Account Value. This means that an amount greater than the amount of your requested withdrawal will be deducted from your Unadjusted Account Value. To make sure that you receive the full amount requested, we calculate the entire amount, including the amount generated due to the CDSC or tax withholding that will need to be withdrawn. We then apply the CDSC or tax withholding to that entire amount. As a result, you will pay a greater CDSC or have more tax withheld if you elect a net withdrawal.

 

·

If you request a gross withdrawal, the amount of the CDSC will reduce the amount of the withdrawal you receive. In this case, the CDSC would equal $2,550 (($50,000 – the free withdrawal amount of $7,500 = $42,500) x 0.06 = $2,550). You would receive $47,450 ($50,000 – $2,550). To determine your remaining Unadjusted Account Value after your withdrawal, we reduce your initial Unadjusted Account Value by the amount of your requested withdrawal. In this case, your Unadjusted Account Value would be $35,000 ($85,000 – $50,000).

 

·

If you request a net withdrawal, we first determine the entire amount that will need to be withdrawn in order to provide the requested payment. We do this by first subtracting the free withdrawal amount and dividing the resulting amount by the result of 1 minus the surrender charge. Here is the calculation: $42,500/(1 – 0.06) = $45,212.77. This is the total amount to which the CDSC will apply. The amount of the CDSC is $2,712.77. Therefore, in order to for you to receive the full $50,000, we will need to deduct $52,712.77 from your Unadjusted Account Value, resulting in remaining Unadjusted Account Value of $32,287.23.

 

Example 2

 

Assume the following:

 

·	you took the withdrawal described above as a gross withdrawal;

 

·	two years after the withdrawal described above, the Unadjusted Account Value is $48,500 ($35,000 of remaining Unadjusted Account Value plus $13,500 of investment gain);

 

·	the free withdrawal amount is still $7,500 because no additional Purchase Payments have been made and the Purchase Payment is still subject to a CDSC; and

 

·	the applicable CDSC in Annuity Year 4 is now 5%.

 

If you now take a second gross withdrawal of $10,000, $7,500 is not subject to the CDSC because it is the free withdrawal amount. The remaining $2,500 is subject to the 5% CDSC or $125 and you will receive $9,875.

 

On the day that we process your request for a withdrawal, we calculate a CDSC based on any Purchase Payments not previously withdrawn. If your Account Value has declined in value, or if you had made prior withdrawals that reduced your Account Value, the dollar amount of your requested withdrawal may represent, as a percentage of the Purchase Payments being withdrawn, a dollar amount that is greater than your Account Value. As CDSC is calculated as a percentage of Purchase Payments being withdrawn, withdrawals in certain scenarios will result in a higher dollar charge than if CDSC was calculated as a percentage of your Account Value.

 

Please note that if you elect the Tax Efficient Annuity Payout Option, net withdrawals are not available of your Tax Efficient Annuity Amount. All tax efficient annuity payments will be gross distributions.

 

We may waive any applicable CDSC under certain circumstances described below in “Exceptions/Reductions to Fees and Charges.”

 

 

IV. Appendix B is hereby replaced in its entirety by the following for applications signed on or after August 8, 2016:

PPIVASUP3

 

 

---

 

 

 

APPENDIX B – SELECTING THE VARIABLE ANNUITY THAT’S RIGHT FOR YOU

 

Pruco Life Insurance Company offers two deferred variable annuity products in this Prospectus. Both annuities, (B and C Series) have different features and benefits that may be appropriate for you based on your individual financial situation and how you intend to use the Annuity. Both of these Annuities may be available to you, depending on factors such as the broker-dealer through which your Annuity was sold. You can verify which of these Annuities is available to you by speaking to your Financial Professional or calling 1-888-PRU-2888.

 

Among the factors you should consider when choosing which annuity product and benefit may be most appropriate for your individual needs are the following:

 

·

Your age;

 

 

·	The amount of your initial Purchase Payment and any planned future Purchase Payments into the Annuity;

 

·	How long you intend to hold the Annuity (also referred to as “investment time horizon”);

 

·	Your desire to make withdrawals from the Annuity and the timing of those withdrawals;

 

·	Your investment objectives;

 

·	The guarantees that an optional benefit may provide; and

 

·	Your desire to minimize costs and/or maximize return associated with the Annuity.

 

You can compare the costs of the B Series and C Series by examining the section in this prospectus entitled “Summary of Contract Fees and Charges”. There are trade-offs associated with the costs and benefits provided by both of the Series. The B Series has Contingent Deferred Sales Charge (CDSC) associated with it, while the C Series does not. The B Series provides a higher Surrender Value in long-term scenarios than the C Series. Because the C Series does not have a CDSC, it provides a higher Surrender Value in short-duration scenarios. In choosing which Series to purchase, you should consider the features and the associated costs that offer the greatest value to you including the different ongoing fees and charges you pay to stay in the Annuity.

 

The following chart outlines some of the different features for each Annuity sold through this Prospectus. The availability of an optional benefit, such as the one noted in the chart, will increase the total cost of the Annuity. You should carefully consider which features you plan to use when selecting your Annuity, and the impact of such features in relation to your investment objectives and which share class may be most appropriate for you.

 

To demonstrate the impact of the various expense structures, the hypothetical examples on the following pages reflect the Account Value and Surrender Value of each Annuity over a variety of holding periods. These charts reflect the impact of different hypothetical rates of return and the comparable value of each of the Annuities (which reflects the charges associated with each Annuity) under the assumptions noted.

 

Pruco Comparison.

 

Below is a summary of the Prudential Premier ® Investment Variable Annuity SM B and C Series sold through this Prospectus. Your registered Financial Professional can provide you with the summary prospectuses or statutory prospectuses for the underlying Portfolios and can guide you through “Selecting the Annuity That’s Right For You” and help you decide upon the Annuity that would be most advantageous for you given your individual needs. Please read the Prospectus carefully before investing. The Company does not make recommendations or provide investment advice.

 

B-1

 

 

 

PPIVASUP3

 

 

---

 

Annuity Comparison	B Series	C Series
Minimum Investment	$10,000	$10,000
Maximum Issue Age	85	85
Maximum Issue Age (Return of Purchase Payments Death Benefit)	79	79
Contingent Deferred Sales Charge Schedule (Based on date of each purchase payment) May vary by state	5 Years (7%, 7%, 6%, 6%, 5%, 0%)	None
Account Value Based Insurance Charge	0.55%	0.68%
Premium Based Insurance Charge (Annual Equivalent)	0.55%	0.67%
Optional Return of Purchase Payments Death Benefit (Total Annual Charge) (For Annuities issued prior to August 24, 2015, the Premium Based Charge is 0.15% and the Account Value Base Charge is 0.15% for both the B Series and the C Series.)	0.17% Premium Based and 0.18% Account Value Based	0.17% Premium Based and 0.18% Account Value Based
Annuity Comparison	B Series	C Series
Annual Maintenance Fee	Lesser of:   · $50, or   · 2% of Unadjusted Account Value   · Waived for Purchase Payments equal to, or greater than $100,000	Lesser of:   · $50, or   · 2% of Unadjusted Account Value   · Waived for Purchase Payments equal to, or greater than $100,000
MVA Options	6 and 12 month DCA MVA options;	6 and 12 month DCA MVA options;
Variable Investment Options (For Annuities issued prior to August 24, 2015, not all options available if you elect the Return of Purchase Payments Death Benefit)	Advanced Series Trust BlackRock Variable Series Funds, Inc. JP Morgan Insurance Trust	Advanced Series Trust BlackRock Variable Series Funds, Inc. JP Morgan Insurance Trust
Basic Death Benefit	Unadjusted Account Value	Unadjusted Account Value
Optional Death Benefit (Return of Purchase Payments Death Benefit)	Greater of:   · Purchase Payments minus proportional withdrawals; and   · Unadjusted Account Value	Greater of:   · Purchase Payments minus proportional withdrawals; and   · Unadjusted Account Value

 

HYPOTHETICAL ILLUSTRATION

 

The following examples outline the value of each Annuity as well as the amount that would be available to an investor as a full surrender. We assume the surrender is taken on the day immediately prior to the surrender charge change that precedes the Annuity Anniversary specified (or, two days before the Annuity Anniversary specified). The “Annuity Anniversary” is the anniversary of the Issue Date of the Annuity. The values shown below are based on the following assumptions: An initial investment of $100,000 is made into each Annuity earning a gross rate of return of 0% and 6% and 10%, respectively.

 

The examples further assume that no additional Purchase Payments or withdrawals are made from the Annuity. The hypothetical gross rates of return are reduced by the arithmetic average of the fees and expenses of the applicable underlying Portfolios (which is 1.48% for both Series) as of December 31, 2015 and the charges deducted from the Annuity at the Separate Account level. The arithmetic average of all fund expenses is computed by adding Portfolio management fees, 12b-1 fees and other expenses of all the underlying Portfolios and then dividing by the number of Portfolios. For purposes of the illustrations, we do not reflect any expense reimbursements or expense waivers that might apply and are described in the “Summary of Contract Fees and Charges.” The Separate Account level charge refers to the Account Value Based Insurance Charge. The Premium Based and the Account Value Based Insurance Charges are included in the following examples.

 

The Account Value and Surrender Value are further reduced by the Annual Maintenance Fee, if applicable.

 

The Account Value assumes no surrender, while the Surrender Value assumes a 100% surrender two days prior to the Annuity Anniversary, as described above, therefore reflecting the CDSC applicable to that Annuity Year. Note that a withdrawal on the Annuity Anniversary, or the day before the Annuity Anniversary, would be subject to the CDSC applicable to the next Annuity Year, which may be lower. The CDSC is calculated based on the date that the Purchase Payment was made and for purposes of these examples, we assume that a single Purchase Payment of $100,000 was made on the Issue Date. The values that you actually experience under an Annuity will be different from what is depicted here if any of the assumptions we make here differ from your circumstances, however the relative values for each Annuity reflected below will remain the same. (We will provide your Financial Professional with a personalized illustration upon request).

 

B-2

 

 

 

PPIVASUP3

 

 

---

 

 

	B Series
		0% Gross Rate of Return				6% Gross Rate of Return				10% Gross Rate of Return
		All years		-2.78%		All years		3.47%		All years	7.50%
	Yr	Annuity Value		Surrender Value		Annuity Value		Surrender Value		Annuity Value	Surrender Value
	1	97,575		90,575		103,426		96,426		107,326	100,326
	2	95,059		88,059		106,852		99,852		115,095	108,095
	3	92,594		86,594		110,409		104,409		123,468	117,468
	4	90,179		84,179		114,105		108,105		132,493	126,493
	5	87,813		82,813		117,942		112,942		142,219	137,219
	6	85,494		85,494		121,928		121,928		152,701	152,701
	7	83,223		83,223		126,067		126,067		163,999	163,999
	8	80,997		80,997		130,366		130,366		176,175	176,175
	9	78,816		78,816		134,831		134,831		189,298	189,298
	10	76,680		76,680		139,468		139,468		203,441	203,441
	11	74,586		74,586		144,284		144,284		218,684	218,684
	12	72,535		72,535		149,286		149,286		235,113	235,113
	13	70,526		70,526		154,480		154,480		252,819	252,819
	14	68,557		68,557		159,875		159,875		271,901	271,901
	15	66,627		66,627		165,478		165,478		292,468	292,468
	16	64,737		64,737		171,297		171,297		314,634	314,634
	17	62,885		62,885		177,341		177,341		338,523	338,523
	18	61,071		61,071		183,618		183,618		364,270	364,270
	19	59,293		59,293		190,136		190,136		392,019	392,019
	20	57,551		57,551		196,906		196,906		421,926	421,926
	21	55,844		55,844		203,937		203,937		454,159	454,159
	22	54,172		54,172		211,240		211,240		488,897	488,897
	23	52,534		52,534		218,824		218,824		526,337	526,337
	24	50,929		50,929		226,700		226,700		566,689	566,689
	25	49,356		49,356		234,881		234,881		610,178	610,178
	Assumptions:
	a. $100,000 initial investment
	b. Fund Expenses = 1.48%
	c. No optional benefits
	d. Annuity for which application was signed on or after August 8, 2016
	e. Surrender value is accounted for 2 days prior to contract anniversary

 

The shaded values indicate the highest Surrender Values in that year based on the stated assumptions. Assuming a 0%, 6% and 10% gross annual return, the B-Series has the highest Surrender Value starting in Annuity Year 6.

 

B-3

 

 

PPIVASUP3

 

 

---

 

					C Series
								0% Gross Rate of Return									6% Gross Rate of Return											10% Gross Rate of Return
								All years				-3.12%					All years					3.24%						All years			7.30%
					Yr			Annuity Value				Surrender Value					Annuity Value					Surrender Value						Annuity Value			Surrender Value
					1			97,359				97,359					103,199					103,199						107,092			107,092
					2			94,605				94,605					106,354					106,354						114,567			114,567
					3			91,910				91,910					109,626					109,626						122,613			122,613
					4			89,273				89,273					113,019					113,019						131,273			131,273
					5			86,692				86,692					116,540					116,540						140,594			140,594
					6			84,168				84,168					120,191					120,191						150,627			150,627
					7			81,697				81,697					123,978					123,978						161,426			161,426
					8			79,280				79,280					127,905					127,905						173,049			173,049
					9			76,914				76,914					131,979					131,979						185,560			185,560
					10			74,599				74,599					136,205					136,205						199,026			199,026
					11			72,335				72,335					140,588					140,588						213,520			213,520
					12			70,118				70,118					145,134					145,134						229,121			229,121
					13			67,950				67,950					149,849					149,849						245,913			245,913
					14			65,828				65,828					154,739					154,739						263,988			263,988
					15			63,752				63,752					159,812					159,812						283,442			283,442
					16			61,720				61,720					165,073					165,073						304,381			304,381
					17			59,732				59,732					170,530					170,530						326,919			326,919
					18			57,787				57,787					176,190					176,190						351,178			351,178
					19			55,884				55,884					182,061					182,061						377,289			377,289
					20			54,021				54,021					188,150					188,150						405,394			405,394
					21			52,199				52,199					194,466					194,466						435,645			435,645
					22			50,415				50,415					201,016					201,016						468,205			468,205
					23			48,671				48,671					207,811					207,811						503,251			503,251
					24			46,963				46,963					214,858					214,858						540,973			540,973
					25			45,292				45,292					222,168					222,168						581,575			581,575
					Assumptions:
					a. $100,000 initial investment
					b. Fund Expenses = 1.48%
					c. No optional benefits
					d. Annuity for which application was signed on or after August 8, 2016
					e. Surrender value is accounted for 2 days prior to contract anniversary

 

The shaded values indicate the highest Surrender Values in that year based on the stated assumptions. Assuming a 0%, 6% and 10% gross annual return, the C-Series has the highest Surrender Value in Annuity Years 1 through 5.

 

B-4

 

 

 

THIS SUPPLEMENT SHOULD BE READ AND RETAINED FOR FUTURE REFERENCE.

PPIVASUP3