Registered index-linked annuities.
If you're looking for an opportunity to grow your retirement assets, and you're comfortable with a certain level of market risk, a RILA may be a good fit for you. RILAs are generally tied to the performance of a market index, offering the opportunity to capture positive index returns up to a limit ("cap rate"), while providing a level of protection ("buffer") if the index return is negative. However, you're not directly invested in either an index or the market.
Some RILAs may have an annual contract and/or administrative fees. The RILAs offered through Schwab does not have these fees. Surrender charges may apply in the event of an early withdrawal.
A RILA may be right for you if:
- You're in or near retirement.
- You're looking for equity-like returns if the index performance is positive and a level of protection if index performance is negative.
- You're looking for tax-deferred growth potential.
Questions about annuities?
Contact an annuity specialist at 866-663-5241.
How does a RILA work?
When choosing a RILA, there are three things to consider:
StepProduct and interest credit schedule ("term").
Select your investment time horizon (i.e., product and surrender charge schedule*). Next, select how often performance is measured (e.g., 1-, 3-, or 6-year "term").
Step"Buffer" and "cap rate"
Select the level of protection against loss ("buffer") and the corresponding maximum return you can receive ("cap rate").**
You earn interest based on the performance of an index (e.g., S&P 500® Index, MSCI EAFE Index, etc.).
Growth opportunities during up markets
The "cap rate" in this example is 10%, meaning you capture any growth up to 10%.
Scenario 1: Index return = 6% → RILA return = 6%
Scenario 2: Index return = 12% → RILA return = 10% ("cap rate" 10%)
Protection during down markets
The "buffer" in this example is –10%, meaning the insurance company will absorb losses up to –10%. Your account value is reduced when the negative index return exceeds the "buffer" percentage.
Scenario 1: Index return = –6% → RILA return = 0%
Scenario 2: Index return = –12% → RILA return = –2% ("buffer" –10%)
What RILA is offered through Schwab?
Brighthouse Shield® Level Annuity
- Issuer: Brighthouse Life Insurance Company and Brighthouse Life Insurance Company of NY
- Financial strength—Standard & Poor's:2 A+
- State availability:
- 3-year: All states except AK, NY & OR
- 6-year: All states except AK & OR
- Product material:
- Brochure (NY only)
- 6-Year fact sheet (NY only)
- 6-year prospectus (NY only)
Interested in learning more about RILAs?
Call 866-663-5241 to connect with an annuity specialist today.
Have questions? We're here to help.