Equitable Expands Portfolio in Variable Universal Life Market
Equitable has launched the Market Stabilizer Option® II (MSO II), an enhanced buffered index offering available for all single life variable universal life (VUL) products. This new product aims to help clients manage current market volatility and maximize wealth while protecting legacies. MSO II offers five options, including various levels of downside protection and tracking the S&P 500® Price Return Index. With this launch, Equitable aims to enhance client offerings amid economic uncertainty, building on its decade of experience in buffered indexed options in life insurance and annuity markets.
- Launch of Market Stabilizer Option® II enhances VUL offerings, providing clients with innovative investment options.
- MSO II includes five options for varying levels of downside protection, catering to different risk tolerances.
- Equitable Financial is a market leader, ranked #1 in Registered Index Linked Annuity (RILA) sales by LIMRA.
- None.
New buffered index offering - Market Stabilizer Option® II - underscores Equitable’s commitment to innovation in the VUL market
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
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:
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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 is17.50% as ofJanuary 20, 2023 .
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Standard with -
15% protection buffer: Provides a balance of upside potential and downside protection with a growth cap rate of14.50% as ofJanuary 20, 2023 .
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Standard with -
20% protection buffer: Provides upside potential with the largest downside protection of the five options with a growth cap rate of12.75% as ofJanuary 20, 2023 .
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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 is13.00% as ofJanuary 20, 2023 .
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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 of15.00% as ofJanuary 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
About Equitable
Equitable, a principal franchise of
Variable universal life insurance products, Structured Capital Strategies® Income and Structured Capital Strategies® PLUS are issued by
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
Equitable is the brand name of the retirement and protection subsidiaries of
S&P 500 Price Return Index — Includes 500 leading companies in leading industries of the
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.
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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).”
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Source: Equitable
FAQ
What is the Market Stabilizer Option® II launched by EQH?
How does the MSO II protect investments in a volatile market?
What index does the Market Stabilizer Option® II track?