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: Available in all states except Alaska and Oregon.
To find out more about the Brighthouse Shield Level Annuity, click on the product brochure, the 3-year fact card, the 3-year prospectus, the 3-year NY prospectus, the 6-year fact card, the 6-year prospectus, and the 6-year NY prospectus.
For resources specific to NY, including the product brochure and fact card, please contact an annuity specialist at the number below.
Interested in learning more about RILAs?
Call 866-663-5241 to connect with an annuity specialist today.
Have questions? We're here to help.