VUL Incentive Life Protectsm
Options for guaranteed lifetime protection and much more
VUL Incentive Life Protectsm offers options for guaranteed
lifetime protection, comprehensive long-term care and
market volatility management.
Guaranteed lifetime protection
Everyone receives our No–Lapse Guarantee, which guarantees the policy for the earlier of 20 years or age 90. They also have the option to select our competitive Extended No–Lapse Guarantee (ENLG) to ensure lifetime life insurance protection.1
Funds for long-term care expenses
Our optional Long-Term Care Servicessm Rider (LTCSR) transforms VUL Incentive Life Protectsm into a source of funds for qualified LTC expenses, helping clients protect their other assets for legacy goals.2
A protection strategy to manage market volatility
Electing our innovative Market Stabilizer Option® II (MSO II) gives access to five buffered indexed options with different levels of downside protection (-10%, -15% or -20%) and competitive upside potential in a variety of market scenarios.3,5
Our LTCSR is one of the most comprehensive in the industry today
We are one of the leading authorities on variable universal life insurance (VUL) with long-term care, offering one of the most comprehensive riders available in the industry today. Our Long-Term Care Servicessm Rider adds flexibility to VUL insurance, so clients on long-term care claim can access benefit payments to pay for anything they need during this difficult time and can receive care from the person they’re most comfortable with, be it a family member, friend or medical professional.2
If the ENLG and LTCSR are both elected, in addition to your life insurance policy being guaranteed for your lifetime, the LTCSR will also remain in effect for your lifetime, subject to the LTCSR terms and conditions. The length of the actual benefit payout period and the payout pool will depend on the options selected and the policy rules.4
Navigate volatile markets with the Market Stabilizer Option® II (MSO II)
The MSO II buffered indexed options provide rates of return tied to the performance of the S&P 500® Price Return Index, offering upside potential up to specified caps in up, flat and down markets and also provides varying levels of downside protection (-10%, -15% or -20%) to help manage market volatility.3 Your clients can choose from three Standard Indexed Options, one Step Up Indexed Option and one Dual Direction Indexed Option.
Which clients might benefit from MSO II Indexed Options?
- Those who are hesitant to open a VUL when the market is volatile.
- Those who want to invest in the stock market but maintain some level of protection against market volatility.
- Those who are nearing retirement and want a conservative investment option to help manage volatility.
The market is pretty wild these days. It's up. It's down. It's up. It's down. After many years of relative stability, Market volatility can be a lot to deal with when planning for your financial future. The fact is everyone invests differently depending on their stage in life, available income, lifestyle, and appetite for risk versus reward. Having a level of protection against the market swings while still trying to make the most of it is essential. At Equitable, we get how you feel and came up with a smarter way to manage volatility with our Market Stabilizer Option II. A suite of choices that give you upside potential whether the market is up, down, or flat along with a variety of downside protection buffers to minimize risk. It's all about more choice and more flexibility to be the type of investor you want to be, now or in the future. The Market Stabilizer Option offers different choices that best suit your investment strategy to manage volatility. The Standard, Step Up, and Dual Direction options. With the standard indexed option you get upside return potential when the S&P 500 price return index is positive up to a cap along with varying levels of downside protection buffers of negative 10, negative 15 or negative 20%, each with its own growth cap rate. Let's see when the index is up. If it rises by 8% in this case, you'd see the full return of 8%. If the index goes up more than the growth cap rate, which in this case is 15% Then your return will equal the 15% cap rate - still a healthy return given the built-in protection. Now, if the index is down by 12% for the year and you have a downside buffer of negative 10% this protects you from the first 10% of loss and your return is only negative 2%. If the index is down only nine percent, you're fully protected and your account remains steady with a zero percent return. The Step-Up index option offers downside protection while providing a return equal to the growth cap rate whenever the index is flat or up. It even has the potential for a return to be stepped up higher than the index is actual return. So whether the market is flat at 0% or it rose to 5%, your return would step up to the growth cap rate of 15% we are using. Since you know your growth cap rate, you'll know exactly what your actual return could step up too. The last option Dual Direction is quite unique in that it gives you upside potential returns whether the index is up or down in this scenario. The market is down with the return of negative 9% since this is within the negative 10% downside protection buffer, your account is credited with the Positive 9%, which is the absolute value of the index return. You can stay confident knowing if the index is down below the buffer we still protect up to negative 10 percent. Whatever the market is doing on any given day shouldn't affect your long-term financial goals. Equitable has a long history of innovating insurance. We were the first to offer buffered investment options within VUL policies because we understand that the market changes and so do people's financial needs. That's also why we expanded our choices with the Market Stabilizer Option II now available with all Equitable individual. VUL policies, whether you're aiming for cost-effective death benefits or maximizing total earnings our range of VUL's will satisfy your needs. Talk to your Equitable representative today to help choose the VUL that's right for you.
VUL Incentive Life Protectsm also has a competitive base policy. When not opting for the ENLG’s lifetime guarantee, your clients’ policies will be issued with a No-Lapse Guarantee (NLG), which guarantees the policy for the earlier of 20 years or age 90.
They will also have more flexibility with access to more than 85 equity, fixed income and managed portfolios, as well as our MSO II, to help manage volatility.
Learn more about VUL Incentive Life Protectsm
Discover how our innovative variable universal life insurance can help your clients achieve their wealth transfer goals
and provide protection from policy lapses, long-term care expenses and market volatility.
Monday–Thursday, 8:30 a.m. – 7 p.m. ET
Friday, 8:30 a.m. – 5 p.m. ET
Resources you can share with your clients to start the conversation
about VUL Incentive Life Protectsm:
1 The ENLG extends the No-Lapse Guarantee period to the policy anniversary nearest the insured’s 121st birthday as long as premium requirements and other conditions are met. The premium requirement for the ENLG is higher than the premium requirement for the No-Lapse Guarantee automatically included with the policy. There is an additional cost for the ENLG. Electing the ENLG will reduce the available variable investment options under the policy. Refer to the VUL Incentive Life Protectsm prospectus for complete information.
2 The LTCSR is available subject to underwriting approval. ENLG premium requirements must be met to maintain the guarantee. Use of the LTCSR benefit will reduce the death benefit payable upon the insured’s death. The LTCSR will terminate if the accumulated benefit lien equals the maximum total benefit. Refer to the VUL Incentive Life Protectsm prospectus for complete information.
3 The MSO II provides varying levels of downside protection and upside potential in various market scenarios. However, amounts in the MSO II are subject to fluctuation in value and market risk, including loss of principal. MSO II is not available in all jurisdictions. In states where MSO II is not available, the Market Stabilizer Option® (MSO) may be available instead. The MSO and MSO II are not available for policies with a contract state of New York. Refer to the product prospectus for more information.
4 Even with the NLG or ENLG, the LTCSR will terminate in the following situations: policyowner requests termination, LTC Total Maximum Benefit is paid out, termination or surrender of the base policy, Living Benefits Rider (terminal illness) is exercised or the policy is put on Loan Extension. Refer to the prospectus for complete information.
VUL Incentive Life Protectsm may not be available in all jurisdictions, and features and benefits may vary. Please check the state availability chart.
VUL Incentive Life Protectsm , a variable universal life insurance policy, and the MSO II (or the MSO, where applicable) are sold only by prospectus. Be sure your clients review the current prospectus for complete details, including investment objectives, risks, charges, expenses, limitations and restrictions. Please be sure your clients read the product prospectuses and consider the information carefully before purchasing a policy or sending money. You can find a copy of the prospectus at equitable.com.
VUL Incentive Life Protectsm variable universal life insurance is a policy with the primary purpose of providing a death benefit. It is also a long-term financial investment that can allow potential accumulation of assets through customized, professionally managed investment portfolios. These portfolios are closely managed in order to satisfy stated investment objectives. There are fees and charges associated with variable life insurance policies, including mortality and risk charges, administrative fees, investment management fees, front-end load, surrender charges and charges for optional riders.
You must be properly licensed to sell Equitable Financial Life Insurance Company and Equitable Financial Life Insurance Company of America products with the LTCSR. Depending on the issue state, you may be required to have a health insurance license and satisfy LTC CE requirements in addition to other licensing requirements.
Insureds age 70 and older who elect the LTCSR on VUL Incentive Life Protectsm will not be eligible for the preferred elite or preferred nontobacco underwriting classes. In FL, this rider is called the Long-Term Care Insurance Rider. Actual terms and conditions of the LTCSR are contained in rider form ICC19-R19-LTCSR, R19-LTCSR and state variations. An earlier version of the rider is offered in CA (R12-10CA) and NY (R12-10NY). This rider has exclusions and limitations and may not be available in all jurisdictions or may vary by version and jurisdiction. The LTCSR has an additional cost and is subject to restrictions and limitations. Clients may qualify for life insurance but not for the LTCSR. The LTCSR is paid as an acceleration of the death benefit.
VUL Incentive Life Protectsm is issued in New York and Puerto Rico by Equitable Financial Life insurance Company (Equitable Financial) (NY, NY) and in all other jurisdictions by Equitable Financial Life Insurance Company of America (Equitable America), an AZ stock company, and is co-distributed by Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN) and Equitable Distributors, LLC. When sold by New York state-based (i.e., domiciled) Equitable Advisors Financial Professionals, VUL Incentive Life Protectsm is issued by Equitable Financial.
Please be advised this web page is not intended as legal or tax advice. Accordingly, any tax information provided is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed, and clients should seek advice based on their particular circumstances from an independent tax advisor. Equitable Financial, Equitable America and its affiliates do not provide legal or tax advice.
S&P®, S&P 500® and Standard & Poor’s 500® are trademarks of Standard & Poor’s and have been licensed for use by Equitable. The Market Stabilizer Option® and the Market Stabilizer Option® II are not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s does not make any representation regarding the advisability of investing in the products.
References to Equitable in this document represent both Equitable Financial Life Insurance Company and Equitable Financial Life Insurance Company of America, which are affiliated companies. Overall, Equitable is the brand name of the retirement and protection subsidiaries of Equitable Holdings, Inc., including Equitable Financial Life Insurance Company (Equitable Financial) (NY, NY); Equitable Financial Life Insurance Company of America (Equitable America), an AZ stock company; and Equitable Distributors. LLC. Equitable Advisors is the brand name of Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN). The obligations of Equitable Financial and Equitable America are backed solely by their claims-paying abilities.
For financial professional use only. Not for use with, or distribution to, the general public.