Effective immediately, ESI permits allocations only to 1-year Segments in the following C-share RILAs (no surrender charge versions):
- Structured Capital Strategies Select
- Structured Capital Strategies PLUS® Series
- Structured Capital Strategies Premier Series Select
- Livewell Dynamic Annuity when the waiver of surrender charge rider is chosen.
Allocations to 3-year or 6-year Segments are not permitted in these products.
Why the restriction?
Although these products do not impose surrender charges, withdrawing funds from an active Segment before maturity can still result in a loss due to the Segment Interim Value calculation.
Importantly, a client could receive less than their original investment even if the underlying index has increased. The applicable buffer protection and index-linked crediting are fully realized only at Segment maturity.
Restricting allocations to 1-year Segments reduces the time during which clients may be exposed to these interim valuation risks.
Questions?
Contact the Direct Business Suitability team at 800-344-7437, options 2, 5, 2.
Case previews may also be emailed to esidbcasepreview@nationallife.com.