On Monday, the consumer life insurance and annuity unit from MetLife Inc., Brighthouse Financial, launched its first new product, a deferred annuity product. The performance of Shield Level 10 is tied to one of three investment indexes, according to a recent article from Business Insider. Last year, MetLife announced its plan to spin off its Brighthouse business, which is still awaiting regulatory approval.
The index annuity will initially be distributed by Wells Fargo Advisors, a unit of Wells Fargo & Co. Shield Level 10 is part of a group of annuities previously sold under the MetLife name. It is designed, partially, to shield customers from the first 10% of index loss, Brighthouse claims.
An annuity is an insurance product offering investors regular income payments, usually in exchange for a lump-sum investment. Payments from an indexed annuity are tied to a percentage of the gain of an investment index that tracks equities, like the S&P 500 index for example. At the time of the contract, a term is chosen, which is the number of years until the principal is guaranteed and the surrender period is finished. This deferred income annuity provides guaranteed lifetime income, similar to a pension, that begins at a future date.
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Written by Rachel Summit