Introduces new investment features that help clients face a challenging market with confidence
Equitable, a leading financial services organization and principal franchise of Equitable Holdings, Inc., announced enhancements to its Structured Capital Strategies PLUS 21 and Structured Capital Strategies Income variable and registered index-linked annuities (RILAs). The new enhancements are designed to provide clients with partial protection against market volatility along with the opportunity to capture upside market potential up to a cap.
“That’s why we’re committed to constantly reimagining our products and rolling out new enhancements, including additional partial protection against market upheaval, increased flexibility or the option for monthly retirement income, that can help them meet their goals.”
The enhancements provide higher buffers to provide additional, partial protection against market turbulence; shorter investment durations that give clients the flexibility to reallocate underlying investments in times of uncertainty; and new investment options that can provide positive or enhanced performance even if market index returns are negative.
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Continuing the company’s history of innovation, Equitable is launching Loss Limiter, a first-of-its-kind RILA investment feature that ensures clients will never lose more than 5% or 10% of their investment due to index performance in the Loss Limiter segment at maturity. Loss Limiter offers built-in downside protection with a buffer against loss up to -10%, and a 90% or 95% protection guarantee based on the chosen investment time frame, no matter how far the chosen equity index drops.
A second new investment option, Dual Step Up, guarantees a positive rate of return equal to the performance cap rate if the selected index return is greater than or equal to the selected buffer (-10% or -15%) at the end of the one-year period. Dual Step Up allows clients to participate in the combined benefits of Equitable’s Dual Direction and Step Up investment options, providing the potential for predictable, positive returns in flat or down markets.
“Clients continue to face persistent economic uncertainty and decreased investment returns, but still need to provide for themselves and their loved ones in retirement,” said Steve Scanlon, Head of Individual Retirement, Equitable. “That’s why we’re committed to constantly reimagining our products and rolling out new enhancements, including additional partial protection against market upheaval, increased flexibility or the option for monthly retirement income, that can help them meet their goals.”
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Other enhancements to Equitable’s Structured Capital Strategies suite of RILAs include:
- Adding a -40% buffer for one-year and six-year investment segment options
- Adding higher buffers of -15% and -20% for most indices to meet clients’ interest in additional protection given market volatility
- Adding Dual Direction investment strategy options for one-year durations in Structured Capital Strategies PLUS® 21
Equitable pioneered Structured Capital Strategies, the first registered index-linked, or buffered, annuity in 2010.
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