The annuities arm of Prudential Financial Inc. is updating its menu of variable annuity optional living benefits.

Prudential, Newark, N.J., has introduced the Highest Daily Lifetime Seven and Spousal Highest Daily Lifetime Seven options.

The options can protect withdrawal value based on 7% annual compounded growth on the highest daily account value.

In some cases, the options also can give holders the ability to increase income guarantees on a daily basis, Prudential says.

Holders do not have to annuitize to benefit from the guarantees.

Highest Daily Guaranteed Return Option is an optional accumulation benefit that protects a guaranteed minimum account value and gives holders a chance to lock in the annuity’s highest daily value, Prudential says.

The HD Lifetime Seven and Spousal HD Lifetime Seven options, which will replace the Highest Daily Lifetime Five option in many states, will give holders a chance to increase their annuities’ income potential every day the market is open, Prudential says.

Prudential notes that the overall election rate for optional living benefits on its Prudential Annuities unit’s VA sales was 81% during the third quarter of 2007.

Account values with guaranteed withdrawal benefits for life totaled about $15 billion at the end of the quarter, Prudential says.

Annual costs are 0.6% for the Highest Daily Lifetime Seven Income Benefit rider and 0.75% for the Spousal Highest Daily Lifetime Seven Income Benefit rider, Prudential says.

The annual cost of the Highest Daily Guaranteed Return Option is 0.35%.

The riders and the underlying annuities are issued by Pruco Life Insurance Company, Newark, N.J., or by Prudential Annuities Life Assurance Corp., Shelton, Conn., and by Pruco Life Insurance Company of New Jersey in New York.

The companies that issue the annuities and riders are responsible for backing the guarantees, Prudential says.