Equitable Continues to Expand Innovative Buffered Variable Annuity Offerings
Latest additions to Equitable’s Structured Capital Strategies® PLUS buffered variable annuity are designed to give investors more options to help weather volatility and preserve growth in years leading to retirement
November 9, 2020
NEW YORK – November 9, 2020 – Equitable, a leading financial services organization and principal franchise of Equitable Holdings, Inc. (NYSE: EQH), today announced eight new options available for its Structured Capital Strategies® PLUS (SCS PLUS) registered index-linked annuity. The new offerings provide clients with additional ways to capture some upside potential even when equity market benchmarks may decline.
These offerings, available to clients beginning November 23, continue to expand upon the SCS PLUS Dual Direction feature launched earlier this year. The new segment options include:
- Enhanced Upside, which allows clients to capture up to 125% of the positive return of the S&P 500 benchmark index with -10% downside protection
- Expanded Dual Direction protection options of -15% and -20% buffers, in addition to the original
- The option to capture upside return or partial downside protection on a 1-year basis for investments in the S&P 500, Russell 2000, MSCI EAFE, Nasdaq-100 and MSCI Emerging Markets indices
Equitable pioneered its Dual Direction feature to allow clients to realize potential upside returns even in down markets. With Dual Direction, if the S&P 500 declines up to or equal to the amount of the buffer (-10%, -15% or -20%) at the end of the investment time frame, clients earn a positive return equal to the percentage of the decline up to or equal to the buffer. If the S&P 500 declines more than the buffer, the client is protected from losses within the buffer.* Positive returns are credited up to the cap.
“Financial professionals and clients are looking to protect against investment losses while managing the ongoing need for investment growth in a potentially volatile market and low interest rate environment,” said Robin M. Raju, Head of Individual Retirement, Equitable. “These latest innovations allow clients to further tailor their portfolios to best help them weather uncertainty and achieve their financial goals.”
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 the buffer protecting against 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 principal franchise of Equitable Holdings, Inc. (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, Equitable provides advice, protection and retirement strategies to individuals, families and small businesses. Equitable has more than 8,000 employees and Equitable Advisors financial professionals and serves 2.8 million clients across the country. Please visit equitable.com for more information.
“Equitable” refers specifically to Equitable Financial Life Insurance Company. Overall, Equitable is the brand name of the retirement and protection subsidiaries of Equitable Holdings, Inc., including Equitable Financial Life Insurance Company (NY, NY), Equitable Financial Life Insurance Company of America, an AZ stock company with main administrative headquarters in Jersey City, NJ, and Equitable Distributors, LLC. Equitable Advisors is the brand name of Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI and TN).
* If the negative return is in excess of the Segment Buffer there could be substantial loss of principal because the client agrees to absorb all losses to the extent they exceed the protection provided.
IMPORTANT INFORMATION -- The Performance Cap Rate is not an Annual Rate of Return. For Standard and Dual Direction Segments, the Performance Cap Rate is the highest Segment Rate of Return that can be credited on a Segment Maturity Date. For Annual Lock Segments, the Performance Cap Rate is the highest Annual Lock Yearly Rate of Return that can be applied on an Annual Lock Anniversary. For Step Up Segments, the Performance Cap Rate is the Segment Rate of Return if the index performance rate for that Segment is greater than or equal to zero. The Segment Buffer is the portion of any negative index performance rate that the Segment Buffer absorbs on a Segment Maturity Date. Any percentage decline in a Segment’s index performance rate in excess of the Segment Buffer reduces your Segment Maturity Value. S&P 500 Price Return Index includes 500 leading companies in leading industries of the U.S. economy, capturing approximately 80% coverage of U.S. equities. Russell 2000® Price Return Index measures the performance of the small-cap segment of the U.S. equity universe, including approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000® Index is a trademark of Russell Investments and has been licensed for use by Equitable Financial. iShares® MSCI EAFE ETF (Not available in all jurisdictions) seeks the investment results that correspond generally to the performance of the MSCI EAFE Index, which includes international securities that carry additional risks and is designed to measure the equity market performance of developed markets, excluding the United States and Canada. The Nasdaq-100® Price Return Index includes 100 of the largest domestic and international non-financial securities listed on The NASDAQ Stock Market based on market capitalization. The index reflects companies across major industry groups, including computer hardware and software, telecommunications and biotechnology.
S&P®, Standard & Poor’s®, S&P 500® and Standard & Poor’s 500® are trademarks of Standard & Poor’s Financial Services LLC and have been licensed for use by Equitable Financial. Structured Capital Strategies PLUS® is not sponsored, endorsed, sold or promoted by Standard & Poor’s, Russell Investments, Nasdaq-100 Price Return Index or MSCI, and none make any representation regarding the advisability of investing in Structured Capital Strategies® PLUS. It is not possible to invest directly in an index.
Variable annuities are sold by prospectus, which contains more complete information about the contract, including risks, charges, expenses and investment objectives. You should review the prospectus carefully before purchasing a policy. Contact your financial professional for a copy of the current prospectus.
Certain types of contracts and features may not be available in all jurisdictions. This press release is not a complete description of the Structured Capital Strategies® PLUS variable annuity, which should be considered a long-term investment for retirement purposes, providing the opportunity for growth potential through the accumulation of assets on a tax-deferred basis by investing in selected investment options. In essence, annuities are contractual agreements in which payment(s) are made to an insurance company, which agrees to pay out an income or a lump sum amount at a later date. There are contract limitations and fees and charges associated with annuities, which include, but are not limited to, mortality and expense risk charges, sales and withdrawal charges, administrative fees, and charges for optional benefits. Amounts in a variable annuity’s investment portfolios are subject to fluctuation in value and market risk, including loss of principal in both the Variable Investment Options and Structured Investment Options. Withdrawals are subject to ordinary income and, if taken prior to age 59½, a 10% federal income tax penalty may apply. All contract and rider guarantees are backed solely by the claims-paying obligations and ability of Equitable Financial Life Insurance Company. Annuities contain certain restrictions and limitations. For costs and complete details, contact a financial professional. Structured Capital Strategies® PLUS (February 2020 version) is a registered service mark of, and is issued by, Equitable Financial Life Insurance Company, 1290 Avenue of the Americas, NY, NY 10104. Co-distributors: Equitable Distributors, LLC and Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN).