Equitable Announces New Enhancements to Flagship Buffered Annuity
Feature offers clients the ability to capture potential investment gains in up and down equity markets
May 12, 2020
NEW YORK – May 12, 2020 – Equitable, a leading financial services company and subsidiary of Equitable Holdings (NYSE: EQH), today announced enhancements to its Structured Capital Strategies® PLUS registered index-linked annuity that offers clients some upside potential even when the S&P 500 benchmark index goes down.
The new feature, Dual Direction, is available within SCS PLUS annuities with the S&P 500 as the benchmark index. Dual Direction offers clients the following benefits:
- If the S&P 500 benchmark index declines up to or equal to 10% at the end of the six-year investment time frame, clients earn a positive return equal to the percentage of the decline up to or equal to 10%.
- If the S&P 500 benchmark index declines more than 10%, the client is protected from the first 10% of losses.
“Given today’s extraordinary market conditions, clients are looking for strategies to help them balance their long-term need for investment growth with protection from equity market declines, especially as they near retirement,” said Robin M. Raju, Head of Individual Retirement, Equitable. “Our goal is to continue to innovate on behalf of our clients, bringing new options and more robust choices to help them achieve their goals.”
Today’s announcement builds on several enhancements to the company’s Structured Capital Strategies® (SCS) suite of annuities. Most recently, the company added a new feature in select versions of Structured Capital Strategies® which allows clients to invest on a one-year basis, giving them the flexibility to realize potential returns or partial downside protection more quickly.
Equitable introduced Structured Capital Strategies®, the first registered index-linked, or buffered, annuity in 2010. Through Structured Capital Strategies®, clients can participate in the performance of one of several mainstream equity market indices up to a cap, with Equitable absorbing the first -10%, -20% or -30% of potential losses. Clients can choose the equity index on which the performance of their investment is based, such as the S&P 500 Price Return Index, Russell 2000® Price Return Index or iShares® MSCI EAFE ETF, the duration of the investment and the level of downside protection based on their goals and risk tolerance.
Equitable, a subsidiary of Equitable Holdings (NYSE: EQH), has been one of America’s leading financial services providers since 1859. With the mission to help clients secure their financial well-being, the company provides advice, protection and retirement strategies to individuals, families and small businesses. Equitable has more than 8,000 employees and financial professionals and serves 2.8 million clients across the country. Please visit equitable.com for more information.
Structured Capital Strategies® PLUS is offered by prospectus, which you can obtain from your financial professional or the insurance company. The prospectus contains detailed information about investment objectives, risks, charges and expenses. You should read the prospectus and consider this information carefully before purchasing a contract or sending money.
A variable annuity is a long-term financial product designed to help you save for retirement. It’s a contract between you and a life insurance company: you make an investment, and the company commits to future benefits for you, such as a guaranteed return, a source of income in retirement or a death benefit to your loved ones. Variable annuities are subject to investment risks, including possible loss of principal invested, and generally contain certain exclusions and limitations, so be sure to read the prospectus and learn about the rules and potential risks. This informational press release is not a complete description of the Structured Capital Strategies® PLUS variable annuity, nor is it intended as a product or investment recommendation.
Important: The Structured Capital Strategies contract’s Segment Buffer protects the client from some downside risk. If the negative return is in excess of the Segment Buffer, there is a risk of substantial loss of principal. All contract and rider guarantees are backed by the claims-paying ability of AXA Equitable Life Insurance Company. There are fees and charges associated with Structured Capital Strategies® PLUS. It is not possible to invest directly in an index. Structured Capital Strategies®PLUS (February 2020 version) is issued by AXA Equitable Life Insurance Company (NY, NY). Co-distributors: AXA Distributors, LLC and AXA Advisors, LLC (member FINRA, SIPC).
Equitable is a brand reference to AXA Equitable Life Insurance Company and, overall, the brand name of Equitable Holdings, Inc. and its family of companies, including AXA Equitable Life Insurance Company, AXA Advisors, LLC (member FINRA, SIPC) and AXA Distributors, LLC. The 1859 founding reference applies exclusively to AXA Equitable Life Insurance Company. The reference to 8,000 employees and financial professionals includes approximately 4,700 financial professionals of AXA Advisors, LLC.