New life insurance product offers guaranteed Distribution Payments and a guaranteed death benefit
Brighthouse Financial, Inc. (“Brighthouse Financial” or the “company”) (Nasdaq: BHF) announced today the launch of Brighthouse SmartGuard Plus, a registered index-linked universal life insurance policy that offers clients guaranteed Distribution Payments that can be used to supplement income in retirement and a guaranteed death benefit. By tracking the performance of well-known market indices, Brighthouse SmartGuard Plus also provides clients with the potential for both their Distribution Payments and policy cash values to grow until Distribution Payments begin. In addition, Brighthouse SmartGuard Plus offers various buffer options that provide a level of protection for the policy’s cash value during market downturns.
“Clients remain interested in products that can help them supplement their income in retirement,” said Myles Lambert, chief distribution and marketing officer, Brighthouse Financial. “With Brighthouse SmartGuard Plus, we built a life insurance product that is designed to do that and more.”
A key feature of Brighthouse SmartGuard Plus is the ability to take tax-advantaged guaranteed Distribution Payments1 that can last for life, adding a measure of certainty for clients’ retirement. After the policy has been in force for at least 10 years, the Guaranteed Distribution Rider (GDR), automatically included with the policy on the issue date for an additional charge, allows Distribution Payments to be taken from the policy’s cash value in the form of policy loans, which reduce the death benefit.
Other key features of Brighthouse SmartGuard Plus include:
- A guaranteed death benefit, that is generally income tax free,2 to help clients ensure their family’s financial security.
- The opportunity to grow the policy’s cash value prior to beginning Distribution Payments by choosing one of two crediting strategies: Indexed Accounts or the Fixed Account.3
- The option for clients who select the Indexed Account crediting strategy to choose from a variety of Buffer Rates (10%, 15%, 20% or 100%) to help provide a level of protection against market downturns for the policy’s cash value.
- The ability, under the GDR, to choose whether to receive Distribution Payments for life or for a shorter amount of time, which may result in the availability of higher Distribution Payment amounts.
- A Lifetime Lapse Prevention Benefit, which guarantees that the policy will not lapse while the GDR is in force as long as scheduled required premiums are paid, beginning at the policy start date.
“We are pleased to further strengthen our life insurance product suite with the launch of Brighthouse SmartGuard Plus. Through tax-advantaged guaranteed Distribution Payments and the potential to grow policy values with a level of protection from market loss, Brighthouse SmartGuard Plus can help clients better achieve their retirement goals,” concluded Lambert.
Brighthouse SmartGuard Plus expands Brighthouse Financial’s life insurance product suite, which includes Brighthouse SmartCare®, a hybrid life insurance and long-term care policy, and Brighthouse SimplySelect®, a term life insurance policy.
About Brighthouse Financial, Inc.
Brighthouse Financial, Inc. (Brighthouse Financial) (Nasdaq: BHF) is on a mission to help people achieve financial security. As one of the largest providers of annuities and life insurance in the U.S.,4 we specialize in products designed to help people protect what they’ve earned and ensure it lasts. Learn more at brighthousefinancial.com.
1 Available after the 10th policy year, Distribution Payments under the GDR are in the form of policy loans and can significantly reduce the unloaned cash value and death benefit amount. When the cash value reaches zero, the GDR will continue to support the availability of Distribution Payments. See the prospectus for more details. A policy loan is generally not treated as a taxable distribution, but exceptions may apply. Consult with a tax professional.
2 Policy loans may significantly reduce the death benefit; however, the GDR guarantees a minimum death benefit amount, assuming the policy and GDR remain in force. While the death benefit is generally income tax free, exceptions may apply. Other taxes including estate, gift, or generation-skipping transfer taxes may also apply. Consult with a tax professional.
3 Brighthouse SmartGuard Plus is an index-linked life insurance policy, which means it tracks the performance of one or more market indices and does not invest directly in the indices. Once Distribution Payments begin, all policy values are transferred to the Fixed Account, and there is no further participation in index-linked market performance.
4 Ranked by 2022 admitted assets. Best’s Review®: Top 200 U.S. Life/Health Insurers. AM Best, 2023.
Brighthouse SmartGuard Plus℠ is a registered index-linked flexible premium adjustable life insurance policy with a Guaranteed Distribution Rider (GDR) issued by, and product guarantees are solely the responsibility of, Brighthouse Life Insurance Company, Charlotte, NC 28277, on Policy Forms 5-71-22 and 5GDR-22 (“Brighthouse Financial”). This product is distributed by Brighthouse Securities, LLC (member FINRA). All are Brighthouse Financial affiliated companies. The prospectus and policy contain information about the policy’s features, risks, charges, expenses, exclusions, limitations, termination provisions, and terms for keeping the policy in force. The prospectus and complete details about the policy are available from a financial professional and should be read carefully. Product availability and features may vary by state or firm. This product is currently not available in New York.
Brighthouse SmartCare® is an indexed universal life insurance policy with long-term care riders issued by, and product guarantees are solely the responsibility of, Brighthouse Life Insurance Company, Charlotte, NC 28277 and, in New York only, by Brighthouse Life Insurance Company of NY, New York, NY 10017 (“Brighthouse Financial”). All guarantees, including any optional benefits, are subject to the claims-paying ability and financial strength of the issuing insurance company. Each issuing insurance company is solely responsible for its own financial condition and contractual obligations. Brighthouse SmartCare has exclusions, limitations, reduction of benefits, and terms under which the policy may be continued in force or discontinued. For costs and complete details of the coverage, please contact your financial professional. May not be available in all states or firms.
Brighthouse SimplySelect® Term Life Insurance is issued by, and product guarantees are solely the responsibility of, Brighthouse Life Insurance Company, Charlotte, NC 28277, on Policy Forms ICC19-5-30CON and 5-19-30CON and, in New York only, by Brighthouse Life Insurance Company of NY, New York, NY 10017, on Policy Form 5-19-30CON-NY (“Brighthouse Financial”). Product availability and features may vary by state or firm.
Brighthouse Financial® and its design are registered trademarks of Brighthouse Financial, Inc. and/or its affiliates.