Structured Capital Strategies PLUS® disclosure
Important Information
Index descriptions
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. The S&P 500 Price Return Index does not include dividends declared by any of the companies included in this index. Larger, more established companies may not be able to attain potentially higher growth rates of smaller companies, especially during extended periods of economic expansion. S&P®, Standard & Poor’s®, S&P 500® and Standard & Poor’s 500® are trademarks of Standard & Poor’s Financial Services LLC (Standard & Poor’s) and have been licensed for use by the company. Structured Capital Strategies PLUS® is 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 Structured Capital Strategies PLUS®.
Russell 2000® Price Return Index — Measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000® Price Return Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000® Price Return Index does not include dividends declared by any of the companies included in this index. Stocks of small- and mid-size companies have less liquidity than those of larger companies and are subject to greater price volatility than the overall stock market. Smaller company stocks involve a greater risk than is customarily associated with more established companies. The Russell 2000® Index is a trademark of Russell Investments and has been licensed for use by the company. The product is not sponsored, endorsed, sold or promoted by Russell Investments, and Russell Investments makes no representation regarding the advisability of investing in the product.
MSCI EAFE Price Return Index — The MSCI EAFE Price Return Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. The MSCI EAFE Price Return Index does not include dividends declared by any of the companies included in this index. International securities carry additional risks, including currency exchange fluctuation and different government regulations, economic conditions and accounting standards. The product referred to herein is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such product or any index on which such product is based. The prospectus contains a more detailed description of the limited relationship MSCI has with the company and any related products.
NASDAQ 100® Price Return Index (not available in all jurisdictions) - 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. Non-diversified investing may be focused in a smaller number of issues or one sector of the market that may make the value of the investment more susceptible to certain risks than diversified investing. The NASDAQ 100® Price Return Index does not include dividends declared by any of the companies included in this index.
The indexes tracked by the SIO are price return indexes, which do not reflect any growth associated from dividend payments. Therefore, the performance of the index selected will be less than owning the actual securities tracked by the index. This difference in performance will compound and increase over time.
Definition of Terms
Annual Lock Segment — Any multiyear duration Segment belonging to a Segment Type whose name includes “Annual Lock.” Unlike other Segments, your return is cumulatively calculated based on Index performance each Annual Lock Period, subject to the Performance Cap Rate and Segment Buffer.
Average return — A simple average of a series of returns generated over a given period of time. Returns are price return only and exclude dividends.
Dual Direction Segment — Dual Direction Segments measure the performance of the index from Segment Start Date to Segment Maturity Date. If the corresponding index performance rate exceeds the Performance Cap Rate during this time period, you receive the Performance Cap Rate. If the index performance rate is between the Performance Cap Rate and Segment Buffer (inclusive of both), you receive the absolute value of the index performance. If the index performance rate is less than the Segment Buffer, the Segment Buffer will absorb the first 15% of the loss.
Dual Direction Segments will generally have lower Performance Cap Rates than Standard Segments with the same index, Segment Duration and Segment Buffer. When making the decision between selecting a Dual Direction Segment and a Standard Segment, you should carefully consider whether you place a greater value on maximizing the potential for gains, or whether you are willing to accept potentially lower gains (because of a lower cap) in exchange for the potential to receive a positive return when the index performs negatively but within the buffer.
Selecting a Dual Direction Segment means you place a greater value on receiving a positive return if the index performs negatively but within the buffer. Selecting a Standard Segment means you place a greater value on the opportunity for increased upside potential provided by the higher cap typically associated with a Standard Segment. In general, the greater the difference between the Standard and Dual Direction Segment caps rates, the greater the trade-off between the two Segment options.
Performance Cap Rate — 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. The Performance Cap Rate is not an Annual Rate of Return.
Segment Buffer — The portion of any negative index performance rate that the Segment Buffer absorbs on a Segment Maturity Date or each Annual Lock Anniversary for a particular Segment. Any percentage decline in a Segment’s index performance rate in excess of the Segment Buffer reduces your Segment Maturity Value and any Annual Lock Anniversary Ending Amount.
Segment Duration — Period from Segment Start Date to Segment Maturity Date.
Segment Type — Comprises all Segment Options having the same Index, Segment Duration and Segment Buffer. Each Segment Type has a corresponding Segment Type Holding Account.
Standard Segment — For Standard Segments, the Segment Rate of Return is equal to the index performance rate, subject to the Performance Cap Rate and Segment Buffer.
Structured Capital Strategies PLUS® is a variable and index-linked deferred annuity contract and is a long-term financial product designed for retirement purposes. Simply stated, an annuity is a contract between you and an insurance company that lets you pursue the accumulation of assets. You may then take payments or a lump sum amount at a later date. In Structured Capital Strategies PLUS®, you invest to accumulate value on a tax-deferred basis in one of the Segments comprising the Structured Investment Option.
Any withdrawal charge applicable to your Segment Type Holding Account or Structured Investment Option will be reflected in the cash value upon surrender and certain withdrawals.
The Structured Investment Option does not involve an investment in any underlying portfolio. Instead, it is an obligation and subject to the claims-paying ability of the issuing life insurance company.
It is important to know that variable annuities are subject to investment risks, including the possible loss of principal invested. Withdrawals from your contract value may be subject to withdrawal charges for Structured Capital Strategies PLUS®. The taxable portion of any withdrawal from an annuity contract is ordinary income, not capital gain.
For Series B: Withdrawals may be subject to contractual withdrawal charges. The contractual withdrawal charge declines from 7% over a six-year period for the Structured Capital Strategies PLUS®. Withdrawal charges may be waived under certain circumstances. Note: a new withdrawal charge schedule will apply to each contribution as of the date received by the issuing life insurance company. Negative consequences may apply if for any reason amounts invested in a Segment are removed before the Segment Maturity Date. If you withdraw during a Segment, the Segment Interim Value is the value of your investment prior to the Segment Maturity Date. The Segment Interim Value may be lower than your original investment in the Segment even where the index is higher at the time of the withdrawal, prior to maturity, than at the time of the original investment. See Segment Interim Value in the Fact Card. Partial withdrawals are permitted.
Unless otherwise requested, withdrawals are taken in the following order on a pro-rata basis: 1. Segment Type Holding Account(s), 2. Segment(s). An additional 10% federal income tax penalty may also apply to withdrawals taken before age 59½.
Return of Premium Death Benefit (ROP DB) is an optional rider that returns the sum of premiums adjusted pro rata for withdrawals. You cannot terminate the Return of Premium Death Benefit once you elect it. The death of the reference life on a contract determines when the Return of Premium Death Benefit is payable. The reference life for the Return of Premium Death Benefit is the original owner(s) (or annuitant, if applicable). The reference life will be set for the life of the contract at issue. For joint owner contracts, both spouses are reference lives, and the Return of Premium Death Benefit is payable upon the death of the second spouse. After the death of the first spouse, the remaining reference life is the surviving spouse. The Return of Premium Death Benefit fee is equal to an annual rate of 0.20% for all Segments within Structured Capital Strategies PLUS®.
Individual circumstances may vary. Investors should consider their individual situation, including your time horizon, risk tolerance, investment objectives and the need for an annuity before investing. Please keep in mind that there can be distribution or other charges assessed when investments are liquidated. When invested in the Structured Investment Option, if the performance is in excess of the Performance Cap Rate, investors will only receive the benefit of gains up to the declared Performance Cap Rate. There is protection from some downside risk; if the negative return is in excess of the Segment Buffer, there is a risk of substantial loss of principal.
Variable annuities are sold by prospectus only, which contains more complete information about the policy, 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 page was prepared to support the promotion and marketing of Equitable Financial and Equitable America variable annuities. Equitable Financial, Equitable America, their distributors and their respective representatives do not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties. Please consult your own independent advisors as to any tax, accounting or legal statements made herein.
All contract and rider guarantees, including optional benefits and any fixed subaccount crediting rates or annuity payout rates, are backed by the claims-paying ability of the issuing life insurance company. They are not backed by the broker/dealer or insurance agency from or through which this annuity is purchased, by the insurance agency from which this annuity is purchased or any affiliates of those entities, and none makes any representations or guarantees regarding the claims-paying ability of the issuing life insurance company. Typically, variable annuities contain certain restrictions and limitations. In addition, early withdrawals may be subject to surrender charges and, if taken prior to age 59½, a 10% federal income tax penalty. Variable annuities are subject to investment risks, including possible loss of principal invested. Annuities contain certain restrictions and limitations. For costs and complete details, contact a financial professional.
Transfers or withdrawals during a Segment: The Segment Interim Value is the value of your investment prior to the Segment Maturity Date, and it may be lower than your original investment in the Segment even where the index is higher at the time of the transfer or withdrawal prior to maturity. A transfer or withdrawal from the Segment Interim Value may be lower than your Segment Investment and may be less than the amount you would have received had you held the investment until the Segment Maturity Date.
It is not possible to invest directly in an index.
Unlike an index fund, Structured Capital Strategies PLUS® provides a return at maturity designed to provide a combination of protection against certain decreases in the index and a limitation on participation in certain increases in the index. Structured Capital Strategies PLUS® does not involve an investment in any underlying portfolio. Instead, it is an obligation of the issuing life insurance company. The Segment Buffer protects you from some downside risk. If the negative return is in excess of the Segment Buffer, there is a risk of substantial loss of principal. If you would like a guarantee of principal, Equitable Financial and Equitable America offer other products that provide such guarantees. The level of risk you bear and your potential investment performance will differ depending on the investments you choose.
Please keep in mind that Equitable Financial and Equitable America, on advance notice to the client, may discontinue, suspend or change Segment offerings and contributions/transfers, or make other changes in contribution and transfer requirements and limitations. A Segment is an investment in a Segment Type, with a specific maturity date. The prospectus contains more information on these limitations and restrictions. Certain features and benefits described herein may not be available in all jurisdictions. In addition, some distributors may eliminate and/or limit the availability of certain features or options, based on annuitant issue age or other criteria. This page is not a complete description of the Structured Capital Strategies PLUS® variable annuity.
Please note that there is a Variable Investment Option, as well as additional types of Segments called Step Up and Enhanced Upside Segments. These options are not currently available through this broker/dealer or may not be initially available when the contract is issued. Please see your product prospectus for more information.
When distributed outside of New York state by Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN) through Equitable Advisors Financial Professionals whose business address is not in New York state, or when distributed by Equitable Distributors, LLC through financial professionals of unaffiliated broker/dealers when the solicitation state is not New York, Structured Capital Strategies PLUS® variable annuity is issued by Equitable Financial Life Insurance Company of America (Equitable America), an AZ stock company with an administrative office located in Charlotte, NC. When offered by Equitable Advisors Financial Professionals whose business address is in New York state or when distributed by Equitable Distributors, LLC through financial professionals of unaffiliated broker/dealers when the solicitation state is New York, Structured Capital Strategies PLUS® is issued by Equitable Financial Life Insurance Company (Equitable Financial) (NY, NY). The obligations of Equitable Financial Life Insurance Company and Equitable Financial Life Insurance Company of America are backed solely by their own claims-paying abilities.
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 with an administrative office located in Charlotte, NC; and Equitable Distributors, LLC. Equitable Advisors is the brand name of Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN).
