New buffered index offering - Market Stabilizer
Option® II - underscores Equitable’s commitment to innovation in
the VUL market
Equitable, a leading financial services company and principal
franchise of Equitable Holdings (NYSE: EQH), has announced the
launch of an enhanced version of its Market Stabilizer Option®. The
new offering, Market Stabilizer Option® II (MSO II), is available
on all single life variable universal life (VUL) products issued by
Equitable Financial Life Insurance Company (Equitable Financial)
and Equitable Financial Life Insurance Company of America
(Equitable America) that are currently sold in the marketplace.1
MSO II helps clients navigate today’s volatile markets and enables
them to thrive, create wealth and protect legacies.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230202005186/en/
Hector Martinez, Head of Life Insurance
at Equitable (Photo: Business Wire)
With the launch of MSO II, Equitable Financial and Equitable
America are building on more than a decade of experience offering
buffered indexed options in the life insurance and annuity markets.
The new MSO II options, which include Standard, Step Up and Dual
Direction segments that track the S&P 500® Price Return Index,
are similar to the most popular buffered options available in
Equitable Financial and Equitable America’s annuity products. A
market leader in the annuity market, Equitable Financial is ranked
the #1 Registered Index Linked Annuity (RILA) provider by LIMRA,
based on 2021 sales data.2
“In an economic climate marked by equity market volatility,
inflation and a possible recession, our clients are more conscious
of the need to protect their wealth and are looking for ways to
maximize the cash value in their VUL policies to the fullest,” said
Hector Martinez, Head of Life Insurance at Equitable. “From
pioneering the first variable life insurance product in 1976 to
being the first insurer to offer VUL with a buffered indexed option
in 2010, we have a track record of innovation in the VUL market.
MSO II underscores our commitment to this space.”
The new MSO II offering takes a unique and innovative approach
to managing market volatility. Unlike other VUL offerings that have
limited or no buffered indexed options, MSO II offers a choice of
five options based on clients’ investment goals, risk tolerance and
life stage, and three buffers with various levels of downside
protection. These options are consistent with some of the most
popular options available on Equitable’s annuity products, such as
Structured Capital Strategies® Income and Structured Capital
Strategies® PLUS. The five buffered indexed options include:
- Standard with -10% protection buffer: Provides upside potential
with some downside protection and typically has the highest growth
cap rate of the five MSO II options. The growth cap rate changes
monthly on all options and is 17.50% as of January 20, 2023.
- Standard with -15% protection buffer: Provides a balance of
upside potential and downside protection with a growth cap rate of
14.50% as of January 20, 2023.
- Standard with -20% protection buffer: Provides upside potential
with the largest downside protection of the five options with a
growth cap rate of 12.75% as of January 20, 2023.
- Step Up with -10% protection buffer: Offers potential for a
higher return than the index with a return that “steps up” to a cap
when the market is either flat or up. The growth cap rate is 13.00%
as of January 20, 2023.
- Dual Direction with -10% protection buffer: Provides
upside potential, including the possibility of a positive return
when the index is down with a growth cap rate of 15.00% as of
January 20, 2023.
In addition to the five buffered options, policy owners have
more than 80 investment options to select from based on their
investment style, including index portfolios, asset allocation
portfolios and equity, and fixed income portfolios. Clients can
allocate some, none or all of their policy cash value to the
buffered options or the other investment funds.
“While many financial professionals and their clients find the
value traditional VUL products provide attractive, they often are
reluctant to make them a part of a financial plan during periods of
market turbulence,” said Garry Tilton, Head of Life Insurance
Products at Equitable. “Recognizing this reality, we’ve leveraged
our expertise in the buffered indexed option space to design a more
well-rounded offering that can provide them with more choice,
flexibility, upside potential and downside protection in uncertain
times.”
About Equitable
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. Reference to the 1859 founding applies
specifically and exclusively to Equitable Financial.
Variable universal life insurance products, Structured Capital
Strategies® Income and Structured Capital Strategies® PLUS are
issued by Equitable Financial Life Insurance Company (NY, NY) or
Equitable Financial Life Insurance Company of America, an Arizona
stock corporation and are co-distributed by Equitable Advisors, LLC
(Member FINRA, SIPC) (Equitable Financial advisors in MI and TN)
and Equitable Distributors, LLC.
A variable universal life insurance contract is a contract with
the primary purpose of providing a death benefit. It is also a
long-term financial investment that can also allow potential
accumulation of assets through customized, professionally managed
investment portfolios. These portfolios are closely managed in
order to satisfy stated investment objectives. There are fees and
charges associated with variable life insurance contracts including
mortality and risk charges, administrative fees, investment
management fees, front end load, surrender charges and charges for
optional riders. Variable universal life insurance is subject to
investment risks, including possible loss of principal invested
A deferred variable annuity is a long-term financial product
designed for retirement purposes. In essence, an annuity is a
contractual agreement 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. Typically, variable annuities have mortality and
expense charges, account fees, investment management fees and
administration fees. In addition, annuity policies have exclusions
and limitations, early withdrawals may be subject to surrender
charges and, if taken prior to age 59 1/2, a 10% federal income tax
penalty. Variable annuities are subject to investment risks,
including possible loss of principal invested.
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 and Equitable
Distributors, LLC. Equitable Advisors is the brand name of
Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial
Advisors in MI and TN).
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. Market Stabilizer Option® II
rider 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 the
Market Stabilizer Option® II rider.
Variable Universal life Insurance, Structured Capital
Strategies® Income and Structured Capital Strategies® PLUS are
all sold by prospectus only that contains more complete information
about the product, including investment objectives, risks, charges,
expenses, limitations, and restrictions. Clients should read the
prospectus and consider the information carefully before purchasing
a policy or sending money. Clients should contact their financial
professional for a copy of the current prospectus.
GE-5423735.1 (1/23)
_________________________________ 1 MSO II is available in 42
states and jurisdictions. 2 LIMRA Fact Sheet, “Year-End 2021 U.S.
Individual Annuity Sales – Variable annuity breakout (Registered
Index-Linked).” Secure Retirement Institute U.S. Individual
Annuities Sales Survey, 2022. Based solely on year-end 2021 total
sales. This ranking does not reflect or account for investment
performance, product quality or other criteria.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230202005186/en/
Media: Monique Freeman mediarelations@equitable.com (212)
314-2010
Equitable (NYSE:EQH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Equitable (NYSE:EQH)
Historical Stock Chart
From Jul 2023 to Jul 2024