In addition to surrender charges, an MVA may apply if you withdraw early when interest rates have risen. This can reduce your account value further—a critical risk to understand.
Brighthouse Financial is a company that offers various annuity products and life insurance solutions. Their offerings can include fixed annuities, variable annuities, and indexed annuities, among others. These products often come with riders or add-ons that can customize the annuity to better fit an individual's needs. brighthouse shield level selector annuity
Some iterations of the product offer a "Performance Trigger" (fixed return if index ends above zero), but the core Shield Level Selector is best known for its point-to-point capped participation. In addition to surrender charges, an MVA may
However, it is not a substitute for a diversified portfolio. The is not a visible fee, but the opportunity cost of lost dividends and capped gains. In a sideways or modestly down market (e.g., -5% on the S&P 500), the Shield 15 or 20 investor sleeps well. In a roaring bull market (e.g., +20% on the S&P 500), the investor will regret the 6% cap. However, it is not a substitute for a diversified portfolio
This is not a buffered ETF or structured note. Once the Shield absorbs the loss, the insurance guarantee protects the remaining principal. However, you forfeit dividends (you track the Price index, not the Total Return index).
