Equitable Financial developed the Structured Capital Strategies (SCS) Premier as their next generation RILA. The new version is an index-linked annuity that has a contract fee compared to SCS Plus which has no explicit fees. SCS Premier has a B-share (1.25% fee) and a Select Share (1.50%, No Surrender Schedule). The product has an investment objective of growth and accumulation of assets through investments in the Guaranteed Interest Option (GIO) and the Segment Investment options (SIOs). SCS Premier offers 121 Segments, including 7 Segment Types, 4 Index Options, 4 Buffers, and 2 Segment Durations.
Unlike the existing Structured Capital Strategies Plus, SCS Premier carries a fee for both B Share and Select (C Share). Purchase rationale should explicitly state why the client’s interests are better served in the Premier version versus the Plus version which remains a product offering at ESI.
Premier:
New business documentation should include the rationale for the purchase, including the selection of the segments. Balanced language and limitations of the product/strategy should be noted.
Depending on current caps/participation rates, the product may not be appropriate for a client who has an aggressive risk tolerance.
Premier Select:
In addition to above, the documentation should include whether the client understands the potential for loss if a withdrawal occurs before the end of the segment term.
For more information, please reach out to Dan Randall for general product inquiries. For Suitability questions, please contact the Suitability team at 800-344-7437 Press 2 – then Press 5, then press 2 For DB Suitability or Case Preview.
TC8444873(1025)1
