Equitable Adds Protection Features to its Tax-Deferred Variable Annuity
Updated version of Investment Edge variable annuity designed to help clients weather uncertainty
March 4, 2021
NEW YORK – March 4, 2021 – Equitable, a leading financial services organization and principal franchise of Equitable Holdings, Inc. (NYSE: EQH), today announced enhancements to its Investment Edge® tax-deferred variable annuity designed to give clients a level of protection against market volatility while preserving their ability to participate in market growth.
The latest version of Investment Edge adds an investment choice with partial downside protection from equity market losses similar to Equitable’s Structured Capital Strategies® registered index-linked annuity.
This segment-based investment approach will track a well-known benchmark index of the client’s choosing. Clients can benefit from the potential growth of that index up to a performance cap rate, with protection against the first -10% of potential losses, less the contract fee.
Clients can further fine-tune their approach by selecting either a Standard Segment which measures investment performance over one year from the date of investment, or the Step Up Segment which guarantees a return equal to the Performance Cap Rate, less the contract fee, if the index performance is equal to or greater than zero when the Segment matures. Clients will maintain the flexibility to transfer out of, or between, the two Segment options at any time.
“Tax-efficient investment strategies for growth are paramount for advisors and clients when constructing a portfolio,” said Robin M. Raju, head of Individual Retirement, Equitable. “By combining some of the most popular features of our retirement products, we are continuing to invest in innovative solutions that meet our clients’ needs for an asset allocation approach, providing both the potential for growth and protection in these uncertain times.”
Investment Edge also includes two other choices for investing:
- Preset portfolios consisting of either investments selected by well-known managers, or risk-based portfolios that create a diversified asset-allocation and help provide consistent performance over time
- Option to build a diversified portfolio of investments from more than 100 investment options, including core U.S. and international equity options and alternative investments
Interactive retirement education and detailed product information for Equitable Financial’s individual retirement annuities is available through its online Retirement Guide.
About Investment Edge
Investment Edge is a tax-deferred variable annuity designed to provide clients with the ability to optimize how and when they start taking distributions for their account, thereby potentially reducing taxes in the early years of retirement. These benefits can also be extended to beneficiaries as well. The latest version of Investment Edge also allows clients to elect for their premiums to be returned to heirs upon their death, eliminating a common hesitancy to invest in variable annuities. It can be used as an investment vehicle for inherited IRA contracts, increasing flexibility in investment choices beyond what is often a limited number of options.
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).
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.
This press release is not a complete description of the Investment Edge® variable annuity, which should be considered a long-term investment for retirement purposes, designed to take advantage of smart diversification and tax-deferred growth potential during investors’ wealth-building years, followed by tax-efficient distributions when they need retirement income. This product is designed for investors who want tax-deferred growth potential as they seek wealth for retirement and other life goals. Investment activity in Investment Edge® does not generate current income taxes, allowing for greater wealth-building opportunities than taxable accounts can offer.
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. The Investment Edge® variable annuity (February 2021 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).