Important information. Key Features of the Income Choice Annuity

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1 Important information Key Features of the Income Choice Annuity

2 Important information The Financial Conduct Authority is a financial services regulator. Prudential is required to give you the important information in this document to help you to decide whether our Income Choice Annuity is right for you. You should read this document carefully with your Income Choice Annuity quote so that you understand what you're buying, and then keep it safe for future reference. Please also read the booklet called Your With-Profits Plan a guide to how we manage the Fund. These documents will make up part of the legal contract for your pension annuity. Taking out this product will meet the demand and need of a customer who requires a regular income for life. There is flexibility to provide the annuity on a single or joint life basis and the income can increase or decrease in relation to the performance of the With-Profits Fund, but will never go below a secure level. We'll communicate with you in English in writing, by phone or . If you would like a Braille, large print or audio version of this Key Features document, please call our Annuities Contact Centre on Monday to Friday, 8:30 am to 6pm. Its aims > To pay you a regular income for the rest of your life. > To give your income the potential to go up. We do this by linking it to the performance of our With-Profits Fund. > To give you the choice about how much income and risk to take when your annuity starts. Also, we usually give you the flexibility to change your income as your needs change. > To guarantee that we will never pay an income less than a certain amount. We call this amount your Secure Level. Your commitments > To give us some or all of your pension pot in return for a regular income for the rest of your life. > To take any tax-free cash that you're entitled to (and want) when you buy your annuity. You can t take it later. > To choose the options you want to include in your annuity when you buy it. > You can t transfer/switch your annuity to another provider or cash it in. Your risks > Your income can go down as well as up depending on the Smoothed Return we announce (please see page 5 for more details). However, we'll never pay you less than your Secure Level. > Depending on how long we pay your annuity for we may pay out less total income over the lifetime of the annuity than the value of the pension pot you used to buy it. > If you select a high income, your income will have less potential to go up. There's also a greater chance it'll go down. > Any changes in the income we pay you may not be enough to offset the effect of inflation. 2 Key Features of the Income Choice Annuity

3 > Questions and Answers What is an Income Choice Annuity? Our Income Choice Annuity is designed to provide you with a regular income for the rest of your life. It is linked to the performance of our With-Profits Fund, so your income has the potential to increase. Your income can also fall, although we'll never pay you less than a certain amount which we call your Secure Level. You have the choice of starting income from within a range we give you and can, usually, change your income level each year. When can I buy an Income Choice Annuity? You can buy an Income Choice Annuity any time between the ages of 55 and 75. You may be able to buy it outside this age range depending on your personal circumstances. How much money do I need to buy an Income Choice Annuity? To buy an Income Choice Annuity, the minimum amount of money you need after taking any tax-free cash is 10,000. What if I have more than one pension? You can buy an Income Choice Annuity directly from each of your existing pensions. This means that you will have an Income Choice Annuity for each of the pensions you have. You will be charged for each annuity you set up this way. If you want to buy just one Income Choice Annuity then you may be able to do this by transferring your existing pensions into one Prudential pension. If you wish to do this we will set up your annuity once we receive all of the purchase money. All of the money must be received within six months of receiving the money from your first pension. If we have not received it within this time we will only set up an annuity with the money already received. Any money received later can be used to buy another Income Choice Annuity at that time. What can I buy an Income Choice Annuity with? You can buy an Income Choice Annuity with money from a HM Revenue & Customs (HMRC) Registered Pension Scheme. However there are certain exceptions. > if it's been set aside for a guaranteed minimum pension as a result of contracting-out of the State Earnings- Related Pension Scheme (SERPS) through membership of a defined benefit or final salary occupational scheme before 6 April 1997 > if your pension scheme requires your annuity to pay a minimum or a specific annual increase in income > if your pension scheme doesn't allow you to have an annuity that's linked to an insurance company's withprofits fund Your pension provider will be able to tell you if your pension scheme can be used to buy an Income Choice Annuity. We may accept transfers if you currently have your pension annuity with another provider. You'll need to contact your current provider to find out if they'll let you transfer your annuity to us. Can I shop around for my annuity? Whatever you decide to do with your pension, you don t have to stay with us. If you choose to use your pension to provide an income, you should shop around. Depending on the choices you make, you may be able to get a higher income elsewhere, so it s important you consider this. What other factors should I consider If you or your partner have a medical condition this could mean you are entitled to a higher income in retirement. Remember that you should shop around for your income and other companies may cover different conditions to us and may use different criteria which means you could get more or less income elsewhere. Prudential s With-Profits Fund Our With-Profits Fund is a fund that pools people s money together and invests it in a wide range of assets. We link your income to our With-Profits Fund to give it the chance to grow over time. At least once a year, we look at how the Fund has performed. If it has performed well, we may be able to use the profits to help increase your income. We don't share all of the profits from our With-Profits Fund each year. We hold back some of the profits in good years with the aim to use these in the years when the Fund doesn t perform well. This allows us to give a more stable return. We call this "smoothing". "Smoothing" returns gives the potential for long-term growth without the fluctuation in your income that comes with a direct investment in the stockmarket. For more details about our With-Profits Fund please read Your With-Profits Plan a guide to how we manage the Fund". This is included in your quote pack. Key Features of the Income Choice Annuity 3

4 How much will my Income Choice Annuity pay me to start with? When your annuity starts, you choose your income from within a range that we give you. We show your income range on your quote. The higher the income you select the more risk there is to maintain that level of income. We set your income range based on several things, including: > the amount of money you have to buy your annuity > your age > your postcode people living in areas where life expectancy is lower than average may receive a higher income than people living in areas where life expectancy is higher than average > the options you chose for example, whether you chose to provide an income for someone else after you die. Can I take any of my pension pot as tax-free cash? You can normally take up to 25% of the value of your pension pot as a tax-free lump sum. You need to take your tax-free cash at the same time as you buy your annuity. If you're coming to us from another pension scheme provider, they may pay you any tax-free lump sum before they send us the rest of your pension pot. How do I decide what starting income to take? When choosing your income you need to consider the level of risk that comes with it and how your income may change in future. We ve described the potential impact of selecting different levels of starting income from your Income Choice Annuity by comparing them to the income you could receive from a level conventional annuity on the same basis (e.g. same payment frequency etc). A level conventional annuity pays you a fixed income for life and has no potential to increase or decrease. If you select a low income rather than a high income > this offers more potential for your income to increase and less potential for your income to decrease each year > there is, however, a greater risk that the total income you receive over the lifetime of the annuity will be lower than you would have received from a level conventional annuity If you select a level of income similar to what you could receive from a level conventional annuity > your income has the potential to increase in future years > following periods of poor investment returns there is, however, a risk that your income could fall. This means that the total income paid over the lifetime of your Income Choice Annuity may be less than would have been paid from a level conventional annuity If you select a high income rather than a low income > there is a greater chance your total income over the lifetime of your annuity could be higher than you would receive from a level conventional annuity > it is more likely that your income will fall in subsequent years and it is less likely to increase How does an Income Choice Annuity compare to a conventional annuity that offsets inflation by changing each year in line with changes in the Retail Prices Index (RPI)? > Income Choice Annuity normally offers a higher starting income than the initial income available from a RPI linked annuity > however the income from an Income Choice Annuity is not guaranteed to fully offset the effects of inflation over the lifetime of your annuity There is no guarantee that any of the options described above will pay a higher total income over the lifetime of the annuity therefore it is important that you select the best option for you. 4 Key Features of the Income Choice Annuity

5 What is the Smoothed Return? The Smoothed Return is your share of the overall profits from our With-Profits Fund. We announce the Smoothed Return each year. The level of the Smoothed Return mainly depends on the performance of our Fund and the Effective Date of your annuity. We can't guarantee what the Smoothed Return will be (it can be positive or negative) or that your income will increase. In some years your income could fall. The Smoothed Return we announce for your annuity assumes you're eligible to receive a full year's share of the profits our Fund achieves. We can change the Smoothed Return at any time but it won't affect you until on, or after, your next policy anniversary depending on the payment frequency you've chosen. How do you work out my Smoothed Return? The Smoothed Return we announce for your annuity depends on several things including the: > return from our With-Profits Fund > whether our expectation about the life expectancy of people with Income Choice Annuities changes. > adjustments for smoothing > Effective Date of your annuity > charges we take The Effective Date The Effective Date is usually the same as the start date of your annuity. However if we don't receive everything we need to set up your annuity until after the start date of your annuity then your Effective Date may be different. If this happens we ll backdate your income payments from the Effective Date to your start date. However we ll only backdate for a maximum period of one year. Your policy anniversary is based on your annuity start date. However, the Smoothed Return you get depends on your Effective Date. If you have an Effective Date later than your annuity start date, your Smoothed Return at your first policy anniversary will reflect only the period we had all of your money, rather than the full year (this is sometimes called proportioned). Your Effective Date is shown on your Statement of Benefits which we will send you when we set up your annuity. Why life expectancy is important As our Income Choice Annuity is designed to provide a regular income for life, we need to estimate how long we expect people to live, so we know what income we can pay. We review this estimate each year before deciding what the Smoothed Return will be. If we think people are likely to live longer than we previously estimated then we will need to pay an income for longer than we anticipated. This means that we may reduce the Smoothed Return and your income could fall. If we think peoples lives will be shorter than previously estimated then we don't need to pay an income for as long. This means that we may increase the Smoothed Return and your income could rise. Key Features of the Income Choice Annuity 5

6 How will my income change? We review your income every year and show your income for the next year on your annual statement. We start to pay you your new income, on or after, your next policy anniversary depending on the payment frequency you ve chosen. Your income may go up or down each year depending on several factors. These include: > your income s Required Smoothed Return. > the Smoothed Return we announce for your annuity > whether we're paying the Secure Level (see "What guarantee is there on my income level?"). We show your income s Required Smoothed Return in your quote and on your statement. On your policy anniversary, we look at what the Smoothed Return for your annuity was for that year. This will then affect your income for the following year. If there is a major fall in stock market values after you buy your annuity or a prolonged period of stock market volatility, this will increase the risk that your income may fall in future years. This risk is greater the higher the starting income you select. Even if our With-Profits Fund performance is strong, it could take a number of years for your income to rise again. However we will never pay you less than your Secure Level. The table below gives examples of what would happen to your income for the following year. If your "Required Smoothed Return" is and the "Smoothed Return" announced is your income will 4% 2% go down by about 2% 4% 4% stay the same 4% 6% go up by about 2% The Required Smoothed Return A Required Smoothed Return is the level of Smoothed Return your annuity will need to maintain your income level. The Required Smoothed Return range will be shown on your quote and may change in future. What guarantee is there on my income level? We guarantee that we will never pay you less than a certain amount. We call this amount your "Secure Level". Can my Income Choice Annuity provide an income for someone else after I die? Yes, there are two ways your Income Choice Annuity may provide an income for someone after you die: 1. Joint-Life option 2. Payment Guarantee Period 1) Joint-Life option If you choose the Joint-Life option, we'll normally pay your spouse, civil partner or dependant an income for the rest of their life if you die before them. You decide whether we pay them the same level of income as you or less. The higher the income you choose, the lower your own starting income will be. Who you can provide for You can provide an income for the following: > a legal spouse or civil partner > one of your children, if: they are over the age of 18, and they are dependent on you due to physical or mental impairment > a dependant not a legal spouse, civil partner or one of your children but someone else who is (at the point of your death): financially dependent on you, or dependent on you due to physical or mental impairment, or mutually dependent on you financially Your Secure Level is shown on your quote. We pay you this amount when the Smoothed Return has been less than the Required Smoothed Return and as a result your income would have fallen below your Secure Level. 6 Key Features of the Income Choice Annuity

7 In the following circumstances we won t pay a Joint-Life income after you die: > if your spouse, civil partner or dependant dies before you (unless you choose at the outset to provide for a spouse or civil partner at the date of your death rather than your current spouse of civil partner) > if your named dependant is no longer dependent on you, for any reason, on the date of your death If you ask us at outset, we will also stop your spouse or civil partner s income if they remarry or enter a new civil partnership. Once your spouse's, civil partner's or dependant's income starts, they can usually change their income every year at the policy anniversary in the same way that you could. If you would like to take the Joint-Life option you need to choose this at the start, you cannot select it later. 2) Payment Guarantee Period You can choose a Payment Guarantee Period to guarantee that an income will be paid for at least a set period of time, from the start of your annuity even if you die within that period. This can normally be up to ten years. If you die within the Payment Guarantee Period you choose, we'll continue to pay your income until the end of the Guarantee Period. The longer the Payment Guarantee Period you choose, the lower your starting income will be. Who you can provide for The income will usually be paid to your spouse, civil partner, estate or someone named in your will. If we pay an income under the Payment Guarantee Period your beneficiary cannot switch to our Guaranteed Pension Annuity or change their income every year at the policy anniversary in the same way that you could. If you would like a Payment Guarantee Period you need to choose this at the start, you cannot select it later. Choosing both options You can choose both a Joint-Life and a Payment Guarantee Period option if you wish. If you do choose both, we can pay the income in two different ways. This would only apply if you died within the Payment Guarantee Period. These are: 1. We start paying the Joint-Life income once the Payment Guarantee Period has ended (sometimes called no overlap). 2. We start paying the Joint-Life income alongside the income payable for the remainder of the Payment Guarantee Period (sometimes called full overlap). When do you pay my income? You choose whether we pay you monthly, quarterly, half yearly or yearly. You also choose whether we pay you in advance or in arrears. If you choose in advance, we'll pay you at the beginning of each period. If you choose in arrears, we will pay you the following month, quarter, half year or year. The actual date we pay you depends on the date your annuity started. If we pay you in arrears, you can choose to have a final payment made to your estate after you die. This final payment will cover the time between your last income payment and the date you died. We call this option Final Proportion. If you choose this option, your starting income will be lower. Once you choose how you want your income to be paid, you can't change your mind later. We won't make payments by cheque. We'll pay your income straight into a bank or building society account in your own name. This account must be a personal account or personal joint account. We can t pay you until we're sure you've met all our requirements, which will be listed in your quote pack. Can I get a higher income if I have a medical or lifestyle condition? You could qualify for a higher income if you or your spouse, civil partner or dependant (if you've chosen the Joint-Life option) have suffered from certain medical or lifestyle conditions now or in the past. Qualifying conditions include cancer, stroke, raised cholesterol/blood pressure, diabetes, heart conditions or conditions relating to other major organs, amongst others. We won t offer you a higher income if you re diagnosed with an illness after your annuity has started. If you think you may be eligible, please contact us on the number on your quote or speak to your financial adviser. We ll then ask you to complete our medical questionnaire, which will help us to decide whether you qualify. In some cases we may ask your doctor to send us a medical report. Key Features of the Income Choice Annuity 7

8 Can I change my income? At each policy anniversary, you can usually choose a new income from within a range in the same way you did when your annuity first started. If you want to change your income you need to consider the same factors you did when you chose your starting income. You should also note the income range will narrow as you get older as there is less time for the Required Smoothed Return to take effect. The range will also be restricted if we are paying you your Secure Level. The income range we offer you on your yearly statement takes into account the postcode we hold at that time. If you move house or we have an incorrect postcode and you wish to change your income, we will need to recalculate your income range. The income range quoted is not guaranteed. Before we agree to a change in your income we may ask for medical information. If we do, any medical reports or examinations need to be paid by you. If you don t contact us, the income we show on your yearly statement for the following year will start automatically. There may be instances where we need to remove or postpone giving you the opportunity to change your income. We d do this to maintain the financial strength of the With-Profits Fund for the benefit of all our customers. This could happen because of adverse market conditions, eg. a significant fall in market values (either sudden or over a period of years), a poor investment outlook or in periods when market prices fluctuate widely. 8 Key Features of the Income Choice Annuity Do I pay tax on my income? You pay tax on your annuity income payments in the same way as you pay tax on earned income. Until HM Revenue and Customs (HMRC) confirm your correct tax code, your annuity income will be taxed at a rate which assumes you're entitled to the basic personal allowance. If you buy your Income Choice Annuity with money from a company pension scheme, its Trustees may pay your income instead of us, in which case they will deduct the income tax, instead of us. What are the charges? Initial Charge We take an Initial Charge from your pension pot when you buy your Income Choice Annuity. We take this charge before we set your starting income range. Yearly Charge We take a Yearly Charge from the return of our With-Profits Fund before we announce the Smoothed Return for your annuity. The size of the Yearly Charge depends on a number of different factors including: > the achieved investment returns, > the expenses our With-Profits Fund incurs, > payments to our shareholders, and > the charge we take to cover the expected cost of guarantees, which is shown on your quote. This Yearly Charge is not guaranteed and may change in the future. For example when the Fund s returns are higher, there may be a higher charge and when returns are lower, there may be a lower charge. In addition, we review the expected cost of guarantees regularly by assessing any changes in: > market conditions such as volatile stock markets, > the expected returns for the investments that make up our With-Profits Fund, > the mix of annuities bought, allowing for the proportion of maximum income selected, age and gender of policyholders and the size of the pension pot they use to buy their Income Choice Annuity. These reviews involve comparing the charge we take to cover the expected cost of guarantees against the actual guarantee cost at that time and could result in a corresponding adjustment being made to the amount of starting incomes offered. However, if this is the case, the adjustment will be clearly shown on your quote. The higher the Yearly Charge, the greater the risk of your income falling in the future. Paying your financial adviser If you re arranging your Income Choice Annuity through an adviser you ll agree with them the charges and how they will be paid. There are two different types of adviser charges: > Set-up adviser charges > Ongoing adviser charges You can pay either of these charges or have a combination of both. Your financial adviser will explain these to you. Set-up adviser charge You may choose to pay your financial adviser directly or you may ask us to take adviser charges from your plan, or a combination of both. If you have instructed us to deduct the set-up adviser charge from your plan, full details will be shown on your quote. This will reduce your starting income.

9 Ongoing adviser charge You may choose to pay your financial adviser directly or you may ask us to take adviser charges from your income, or a combination of both. If you have instructed us to pay the ongoing adviser charge we will deduct this from your net income at the same time we pay you. If you agree to change your servicing agreement with your adviser, you can increase, decrease, stop or start your ongoing adviser charge. Your adviser can also decrease or stop the payments. If you, or your adviser, decide to change the payments, please let us know and we will amend the income level to be paid to you. Any changes made will take effect from your next payment date. Commission If your plan has been arranged without advice being given you may choose to pay your financial adviser directly or you may ask us to take commission from your plan, or a combination of both. If you ask us to take commission from your plan full details will be shown on your quote. We will only pay commission at the time the annuity is set up. This will reduce your starting income. Can I, or my dependant, switch my Income Choice Annuity to one of your other pension annuities? On any policy anniversary, you can switch to our Guaranteed Pension Annuity (GPA this is our conventional annuity). The amount of your GPA income will depend on the value of your Income Choice Annuity at the time you switch, which we will calculate, and also on the cost of buying a GPA at that time. All the other options you chose for your Income Choice Annuity (such as payment frequency) will remain the same when you switch. The amount of GPA income we offer you on your yearly statement takes into account the postcode we hold for you at that time. If you move house or we have an incorrect postcode and you wish to switch, we will need to recalculate your GPA income. You can't switch to a GPA if the income will be less than the Secure Level on your Income Choice Annuity. The Secure Level only applies to Income Choice. Before we agree to a switch we may ask for medical information. If we do, any medical reports or examinations need to be paid by you. If you select the Joint-Life option, your spouse, civil partner or dependant can switch to our Guaranteed Pension Annuity once their income starts. If you or your dependant do switch you can't switch back later. For more information on our Guaranteed Pension Annuity please read the Key Features document. If you don't have this you can download it here: What if I change my mind? Unless we tell you otherwise, you have 30 days from the date we send you your first quote to cancel your Income Choice Annuity. We'll refund the value of the annuity at the date we get your cancellation instruction. The amount returned to your original provider may be less than the amount of money you used to buy your annuity with. If we've already paid any money to you, you ll need to repay it before we can return your pension pot. We'll then pay your pension pot to the provider or providers of your pension scheme. If you transferred a pension annuity from another provider, we'll return your money to your previous annuity provider. If we have already made a payment to your adviser and you cancel, we will recover this payment and return it with the funds to your original pension provider. Your adviser may still want to be paid for the cost of advice. After the 30 days are up, you've no right to cancel. To cancel your Income Choice Annuity, please complete and return the cancellation notice that we send you. If you can't find this cancellation notice, you can write to tell us you want to cancel. Please sign the letter, and include your quote reference number. Our address is under the "How to contact us" section. What happens if I die before my annuity start date? If you choose for your Income Choice Annuity to start at some point in the future and die before the annuity start date, we will return any money that we have already received to where it came from. Key Features of the Income Choice Annuity 9

10 > Other information How to contact us If you have a financial adviser, please continue to use them as your first point of contact. Alternatively, you can call us on the telephone number shown on your quote. You can also write to us at: Post: Prudential Annuities Contact Centre Lancing BN15 8GB If you've any questions about your client category, or think your category should be different, please call our Customer Service Team on Monday to Friday, 8am to 6pm. Conflict of interest We want to make sure that we uphold our reputation for conducting business with integrity. That s why we've drawn up a policy to deal with any conflicts of interest. Or visit our website: Guidance Guarantee In addition to the advice your Financial Adviser can provide, we recommend you use Pension Wise, a new service from the Government that will offer free and impartial guidance. This service will be available on the internet, over the telephone, or face to face. Find out how to access this by visiting How to make a complaint If we do anything that you're unhappy about, we want to know. We'll always try to put it right if we can. To resolve your complaint quickly we need to know exactly what the problem is. So, it would really help if you could write to us with all the details of what has happened to: Prudential Customer Relations Unit Lancing BN15 8GB Please remember to include your annuity/ quote reference number. If you'd rather phone, you can call us on the number shown on your quote. We hope that we'll be able to handle your complaint in a way that satisfies you. But if we can t, you can speak to one of the following organisations: 10 Key Features of the Income Choice Annuity The Financial Ombudsman Service Exchange Square London E14 9SR Telephone: The Pensions Advisory Service (TPAS) or the Pensions Ombudsman 11 Belgrave Road London SW1V 1RB TPAS: Pensions Ombudsman: We can help you decide which organisation is the most appropriate for your complaint, or you can ask your financial adviser. Making a complaint won t affect your right to take legal action. Your client category The Financial Conduct Authority asks companies to categorise their clients based on their involvement in, and familiarity with, financial services. This is a way of making sure we send the right type of information to the right people. You're categorised as a Retail Client. This means you get the highest level of protection by getting the clearest explanation of what you're buying and more detail about the risks. If you would like to know the full details of our Conflict of Interest Policy, please contact our Customer Service Team on Financial Conduct Authority (FCA) Registration Prudential Assurance Company Limited and Prudential Retirement Income Limited are entered on the FCA Register. The FCA Register is a public record of all the organisations that the FCA regulates. Our Firm Reference Number for the companies listed above are and respectively. You can contact the FCA at: The Financial Conduct Authority 25 The North Colonnade Canary Wharf London E14 5HS Telephone: Prudential Regulation Authority Contact Details: The Prudential Regulation Authority Bank of England Threadneedle St London EC2R 8AH Telephone: enquiries@bankofengland.co.uk

11 Additional terms and conditions The legal contract for your Income Choice Annuity If you own the Income Choice Annuity the legal contract is between you and us. If the Trustees or Administrators of your current scheme own the Income Choice Annuity the legal contract is between them and us. The following items make up the legal contract for your annuity: > the final quote > this Key Features document > your application, acceptance forms and any other supporting information you've given us > the booklet, Your With-Profits Plan a guide to how we manage the Fund You may also get a member's booklet or policy document. Using your annuity as security for borrowing You must not use this annuity as security for any form of borrowing. For example, you cannot use this annuity as a guarantee on a secured loan or mortgage. Transfer of ownership If the Income Choice Annuity is to be owned by the Trustees of your pension scheme, then providing HM Revenue & Customs (HMRC) legislation and the scheme rules allow, the Trustees may transfer ownership of the annuity either: > to you, or > to any other named policyholder, or > to the Trustees of another registered pension scheme This is only possible where the benefits are still payable to you, or to others who are entitled to get them. Proof of entitlement Before we pay any money to you, or any other person entitled to an income from your annuity, we may ask for proof of entitlement. This may include evidence that you're still alive and proof of identity and age. If we don't have sufficient proof we may refuse, suspend or stop payments. Divorce and dissolution of civil partnership legislation Government legislation classes pension funds and pension annuities as assets that may be taken into account in a divorce settlement or dissolution of a civil partnership. If you divorce or your civil partnership is dissolved, and a pension credit is awarded against your annuity, we'll reduce your income. If this happens we'll write to you. Class of business Your Income Choice Annuity is classed as: Pension business under Section 431B of the Income and Corporation Taxes Act; and as long-term business within the meaning of the Financial Services and Markets Act If these Acts are changed, or are no longer in force in the future, we may make any reasonable changes to the terms of this annuity. We'll let you know of any changes at the time. Changes to the terms and conditions of your Income Choice Annuity If we change the terms and conditions of your Income Choice Annuity in the future, we'll write to you. Law The Law of England and Wales applies to your Income Choice Annuity. Legislation, particularly about tax, is open to differing interpretation as well as to change in law and practice that we cannot anticipate. Your contract is supplied in English and all communications will be in English. Compensation We are covered by the Financial Services Compensation Scheme. You may be entitled to compensation from the Scheme if we cannot meet our obligations. This depends on your eligibility, the type of business and the circumstances of the claim. For more information on the Financial Services Compensation Scheme and examples of limits in the scope of FSCS cover for your plan, please refer to your product Terms & Conditions and/or the following webpage: For further information contact: Financial Services Compensation Scheme 10th Floor, Beaufort House 15 St Botolph Street London EC3A 7QU Telephone: or The information in this document is based on our understanding as at February 2015, of current taxation, legislation and HM Revenue & Customs practice. All of these are liable to change without notice. The impact of taxation (and any tax reliefs) depends on individual circumstances. If the details contained in your quote are subsequently found to be incorrect, then your quote is invalid and either your quote or any of the benefits to which it refers, can be cancelled or appropriately changed. Key Features of the Income Choice Annuity 11

12 "Prudential" is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. ANNK /2015