| Feature | Direct Index Investment (No Shield) | Brighthouse Shield Option | | :--- | :--- | :--- | | | None. You lose 1:1 with the index. | Partial. Shield absorbs first 10-30% of losses. | | Upside Potential | Unlimited. You capture 100% of the gain. | Capped. You only receive gains up to a predetermined rate. | | Dividends | You receive dividends (typically 1-2% annually). | You do not receive dividends. The cap is based on price return only. | | Liquidity | High. You can sell any trading day. | Low. Surrender charges and market value adjustments apply for early withdrawal. |
In essence, you are (through the cap and forgone dividends) for the protection of the shield. This is a classic hedging strategy, not a free lunch. brighthouse financial shield options
Another interpretation of "Shield Options" refers to the optional income riders that protect your lifestyle. These usually come at an additional annual cost deducted from the account value. | Feature | Direct Index Investment (No Shield)
Shield Options are available in set time periods, most commonly 1-year , 3-year , and 6-year terms. The term length directly influences the Cap Rate. Generally, longer terms offer higher caps because you are locking your money away for a more extended period, giving the insurance company more flexibility. Shield absorbs first 10-30% of losses
If you are looking at older literature, you may see Brighthouse Financial was spun off from MetLife. As of late 2022, Brighthouse Financial rebranded its annuity and life insurance operations under the name Corebridge Financial .
Let's assume you invest $100,000 in a with a 10% Cap .