Prudential Annuities is giving variable annuity holders specific income guarantees.

Prudential Annuities, a unit of Prudential Financial Inc., Newark, N.J., says its new, optional Highest Daily Lifetime Five VA rider will guarantee payment of a “5% income stream every years for life based on 5% annual compounded growth on the highest daily protected value.”

Prudential is selling the new rider with most annuity products issued by its American Skandia Life Assurance Corp. and Pruco Life Insurance Company units.

Investors who buy the rider can increase an annuity contract’s “protected withdrawal value,” or the value used to compute the guaranteed lifetime income, any day that the stock market is open for trading.

“The protected withdrawal value is determined by comparing every daily account value growing at an annual 5% compounded rate of return for the first 10 years from benefit election or until an investor’s first withdrawal, whichever is sooner,” Prudential says.

The rider uses a special risk management system to shift funds between variable investment options and fixed investment options, Prudential says.

After withdrawals begin, increases in an account’s highest quarterly value can still lead to increases in income payments, Prudential says.

The cost of the rider is 0.6% of account value.

American Skandia and Pruco Life are responsible for backing the rider guarantees.