Can losses in your client’s account be a good thing for their overall account balance? The answer may surprise you. Coming soon (February 18th), Equitable is releasing an update to their Structured Capital Strategies Plus contract that will not only cover losses in your client’s account, it will cover the losses and then credit the amount of the loss to your client’s account balance.
Sounds good, but what does it cost? Nothing.
Here is how it works.
Like many other variable index annuity contracts, there is an investment term, indexes you can invest in, a buffer against losses, and a cap, all for no fees to the client. Where this product is different is not only does this contract provide a buffer, it also credits losses up to 10% back into the clients account. For example, if the client invested $100,000 into the six-year term contract with the 10% buffer against losses option and at the end of the term the account value had dropped by 10%, the value of the account would be $110,000. This is because Equitable would be responsible for covering the first 10% of losses in the account because of the 10% buffer option selected, and then they would credit the amount of the loss back into the client’s account. Please see the example below. These are not the actual cap rates of the product since the product has not been release yet, it is just an example I made up to illustrate how this contract will work in different situations.
Last, this updated version of the Structured Capital Strategies Plus contract will not be available in Alaska, New York, or Oregon at launch on February 18th, and Equitable is still waiting on approval from California, Hawaii, Indiana, Pennsylvania, and Puerto Rico at this time. All other states have been approved for launch on February 18th at this time.
To learn more about the Structured Capital Strategies Plus contract, please give me a call or you will be able contact the Equitable sales desk at 888.517.9900 for their updated sales material as of February 18th.
Contact Micah Hesting for more information:
Relationships/Business Development Strategist