Equitable has added a variable indexed annuity feature that may help the purchaser convert a stock market drop into a crediting rate gain.
Equitable is offering the new Dual Direction feature along with the Structured Capital Strategies Plus buffered annuities.
An annuity owner can use the feature together with a crediting rate option linked to the performance of the S&P 500 stock index.
If the S&P 500 index falls up to 10% over a six-year period, then an owner who pays for the Dual Direction feature will get a positive return equal to the percentage of the decline, up to a limit of 10%, according to Equitable.
If the S&P 500 benchmark index falls more than 10%, and stays down, the annuity owner will get protection against the first 10% of losses, Equitable says.
Equitable’s full name is AXA Equitable Life Insurance Company. AXA Equitable Life is responsible for supporting the new loss reverser return guarantee.
In other annuity announcement news:
AIG Life & Retirement, a division of American International Group Inc., says it will be offering the X5 Advantage indexed annuity through Annexus, an annuity design firm.
AIG’s American General Life Insurance Company unit writes the annuities.
An X5 Advantage income feature can double the amount of any interest credited to the annuity, according to AIG Life & Retirement.