SECURITIES AND EXCHANGE COMMISSION
UNDER THE SECURITIES ACT OF 1933
(980) 365-7100
of registrant’s principal executive offices)
c/o The Corporation Trust Company
1209 Orange Street
Corporation Trust Center
Wilmington, DE 19801
(302) 658-7581
including area code, of agent for service)
Eversheds Sutherland (US) LLP
The Grace Building, 40th Floor
1114 Avenue of the Americas
New York, NY 10036-7703
Large accelerated filer ☐ | Accelerated filer ☐ |
Non-accelerated filer ☒ | Smaller reporting company ☐ |
Emerging growth company ☐ |
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Policy | Flexible premium adjustable index-linked life insurance policy. |
Premium | You choose the amount and frequency of premium payments, subject to the limits described herein. You select a Planned Premium Payment schedule, which consists of a first-year premium amount and an amount for subsequent premium payments. You can make Planned Premiums Payments on an annual, semi-annual, quarterly, or monthly schedule. No premium payment can be less than $1,000, except with our consent. See “PREMIUMS.” We will not accept additional premium payments after you start Distribution Payments, unless the GDR terminates. If you have a loan and we receive a payment from you, we will treat it as a loan repayment, unless you request for us to treat it as a premium payment. See “Loan Repayment” under “LOANS” and “REQUESTS AND ELECTIONS.” |
Guaranteed Distribution Rider | The GDR guarantees you will receive distribution payments over a specific period of time. On the Policy Start Date, you may choose when to receive Distribution Payments and the duration (10-year, 20-year or lifetime (up to Attained Age 121)). The GDR is automatically included with your Policy, and you pay an annual charge for this benefit. This GDR Charge, which is assessed based on the Cash Value or the Face Amount, will be deducted from your Policy’s Cash Value as part of the Annual Deduction. Distribution Payments do not reduce the Face Amount, which means the GDR charge could continue to be based on the full Face Amount even though the Policy Proceeds payable to your beneficiary are reduced because of the Distribution Payments. Once the Policy has been in force for at least 10 years, you are eligible to receive Distribution Payments. The Policy cannot be a MEC, and you must repay any Policy Loan Balance before starting Distribution Payments. Distribution Payments are paid in the form of loans. The Distribution Payments will reduce the Policy’s unloaned Cash Value and the Policy Proceeds payable to your beneficiary. However, the GDR also includes a Lifetime Lapse Prevention Benefit and guarantees a minimum amount of Policy Proceeds ($10,000) upon the Insured’s death. If the Cash Value is insufficient to cover Distribution Payments, we will increase the Cash Value in order for the Distribution Payments to continue. All Distribution Payments are subject to the minimum Distribution Payment amount ($250) and Maximum Distribution Payment. The GDR also provides a Lifetime Lapse Prevention Benefit that guarantees the Policy will not lapse while the GDR is in force, provided Annual Lapse Prevention Premiums are paid when due and the Cash Value of the Policy, less any Surrender charge, is more than the outstanding loan amounts plus accrued interest. See “GUARANTEED DISTRIBUTION RIDER.” |
Issue Age | 35-65 (see “THE LIFE POLICY”) |
Cash Value | The total of the Fixed Account, Holding Accounts, Indexed Accounts, and the Loan Account. See “CASH VALUE.” |
Indexed Account | An Indexed Account provides the opportunity to link your investments to the return of an Index. Each Indexed Account has the following Indexed Account Factors: Index, Segment Term, Holding Account interest rate, a Buffer Rate, and a Cap Rate. For each Indexed Account, the Indexed Account Factors, except for the Holding Account interest rate, apply from the Segment Start Date to the Segment Maturity Date. See “INDEXED ACCOUNTS.” |
Segment Term | All Segment Terms are 1 year. See “SEGMENT TERM.” |
Index | The current Indices are as follows: •S&P 500® Index (Price Return Index); •Russell 2000® Index (Price Return Index); and •MSCI EAFE Index (Price Return Index). See “INDICES.” |
Buffer Rate | We currently offer different levels of protection: •Buffer 10 — A Buffer Rate where negative Segment Index Performance of up to 10% is absorbed by us at the Segment Maturity Date, which would leave you to absorb any remaining negative Segment Index Performance of up to 90%. •Buffer 15 — A Buffer Rate where negative Segment Index Performance of up to 15% is absorbed by us at the Segment Maturity Date, which would leave you to absorb any remaining negative Segment Index Performance of up to 85%. •Buffer 20 — A Buffer Rate where negative Segment Index Performance of up to 20% is absorbed by us at the Segment Maturity Date, which would leave you to absorb any remaining negative Segment Index Performance of up to 80%. •Buffer 100 — A Buffer Rate where 100% of negative Segment Index Performance is absorbed by us throughout the entire Segment Term. See “BUFFER RATES.” |
Cap Rate | The maximum rate that may be credited at the Segment Maturity Date based on positive Segment Index Performance. See “CAP RATES.” |
Interim Segment Value | We calculate an Interim Segment Value on each Business Day between the Segment Start Date and prior to the Segment Maturity Date. The Interim Segment Value is the amount we use to determine the Indexed Account Cash Value prior to the Segment Maturity Date. The Indexed Account Cash Value is part of the Cash Value, which determines how much is available for death benefits (including Policy Proceeds and an Accelerated Death Benefit payment), loans (not including loans in connection with Distribution Payments under the GDR), transfers from Indexed Account Cash Value to the Fixed Account if you choose to start (or restart) Distribution Payments under the GDR, and Surrenders (including Surrenders in connection with the Free Look Period), if these transactions occur on any day other than the Segment Maturity Date. An Accelerated Death Benefit payment and a loan that is not a Distribution Payment will reduce the Interim Segment Value by the dollar amount of the transaction. The Interim Segment Value of an Indexed Account is equal to the current Segment Value in the Indexed Account plus Accrued Index Return. Accrued Index Return is determined using the Accrued Buffer Rate, which is less than the full Buffer Rate (except for the Buffer 100, the Accrued Buffer Rate is always 100%), and the Accrued Cap Rate, which is less than the full Cap Rate. This means any negative interest we use to calculate the Interim Segment Value may be greater than it would be on the Segment Maturity Date, and any positive interest we credit may be less than it would be on the Segment Maturity Date. See “INTERIM SEGMENT VALUE CALCULATION.” You may obtain your Interim Segment Value on any Business Day by calling us at 1-800-882-1292 or by accessing our website at www.brighthousefinancial.com. |
Allocations and Transfers | You may allocate Net Premiums among the Fixed Account and the Indexed Accounts. The initial Net Premium will be allocated according to the allocations you chose at the time you apply for the Policy. Future Net Premiums are allocated as follows: •Future Net Premium to the Fixed Account will always go directly into the Fixed Account. •Future Net Premium to Indexed Accounts received within the Transfer Period, which is the 21 day period following any Policy Anniversary, will be treated as if it had been received on the Policy Anniversary, and we will apply the Net Premium directly to the Indexed Accounts. •Future Net Premium received after the Transfer Period will remain in the associated Holding Account until the next Policy Anniversary. On the Policy Anniversary, we will transfer amounts in the Holding Account to its associated Indexed Account according to your latest instructions on file with us unless you provide us different allocation instructions before the end of the Transfer Period or have elected the automatic Cash Value rebalancing program. In connection with any Segment Maturity Date, the Segment Value allocated to the maturing Indexed Account will automatically be renewed into the same Indexed Account unless you instruct us to transfer such amount into a different Indexed Account(s) or the Fixed Account or have elected the automatic Cash Value rebalancing program. If the same Segment is not available, the Segment Value will be transferred to the Fixed Account. Under our current administrative procedures, you have the Transfer Period to notify us that you want to transfer some or all of your Segment Value to a new Indexed Account(s) or the Fixed Account. The request to transfer must be received at our Administrative Office. See “REQUESTS AND ELECTIONS.” Transfers out of an Indexed Account before Segment Maturity Date are not permitted. See “TRANSFERS.” In addition, you may transfer any unloaned Cash Value among the Fixed Account and Indexed Accounts on a Policy Anniversary. Unloaned Cash Value is the total of the values in the Fixed Account, Holding Accounts, and Indexed Accounts. Under our current administrative procedures, we will allow you to make transfers during the Transfer Period, and we will treat the transfer as if it occurred on the Policy Anniversary. See “TRANSFERS” and “AUTOMATIC CASH VALUE REBALANCING.” If you have started Distribution Payments under the GDR, all of your unloaned Cash Value will have been transferred to the Fixed Account, and you may not transfer to the Indexed Accounts while receiving Distribution Payments. When you start Distribution Payments, even though you are no longer allocated to any Indexed Account, we will not refund any portion of your Annual Indexed Account Charge. Your Annual Deduction will not include an Annual Indexed Account Charge if all your unloaned Cash Value is in the Fixed Account. If you stop receiving Distribution Payments and instruct us to transfer amounts from the Fixed Account to one or more Indexed Accounts, the transfer will take effect on the next Policy Anniversary, and you will be assessed an Annual Indexed Account Charge as part of the Annual Deduction. See “Annual Deduction” under “CHARGES.” |
Fixed Account | See Appendix C. |
Access to Your Money | You may borrow money from your Policy by taking a loan. A loan reduces the Policy’s Cash Value in the Indexed Accounts, Holding Accounts, and the Fixed Account and may increase your risk of Policy lapse. Policy Proceeds will also be reduced by the Policy Loan Balance. Loans may have tax consequences. There are two ways to take a loan: (1) by borrowing some portion of the Policy’s unloaned Cash Value, if available. We will calculate the maximum amount you may borrow, as of the date the loan is requested; and (2) by taking a Distribution Payment or the One-time Payment, which is available through the GDR. The maximum One-time Payment is the lesser of: •The difference between the cumulative Maximum Distribution Payments available to you based on your chosen Distribution Payment Duration and Distribution Payment Frequency and the total Distribution Payments you have received since the Distribution Start Date; or, •The lesser of: three times the Maximum Distribution Payment or $150,000 (which is referred to as the One-time Payment Limit and is shown in the GDR). See Appendix D for examples of the One-time Payment. Please note that while Distribution Payments and the One-time Payment are loans, the terms, conditions, and limitations are not the same as loans not covered by the GDR. For a complete understanding of the differences, see “LOANS” and “GUARANTEED DISTRIBUTION RIDER.” Additionally, you may Surrender the Policy for its Cash Surrender Value during the lifetime of the Insured at any time. A Surrender may have tax consequences. Partial withdrawals are not permitted under the Policy. See “SURRENDERS.” |
Surrender Charge | During the first ten Policy Years, if you surrender or lapse your Policy, then we will deduct a Surrender charge from the Cash Value. We deduct the Surrender charge using the Policy Deduction Method. The table below shows the maximum Surrender charge per $1,000 of Face Amount that could apply under any Policy. See “SURRENDERS.” |
Beginning of Year | The Maximum Surrender Charge per $1,000 of Face Amount | |||
1 | $45.00 | |||
2 | $42.67 | |||
3 | $40.67 | |||
4 | $38.14 | |||
5 | $35.10 | |||
6 | $26.60 | |||
7 | $25.48 | |||
8 | $23.31 | |||
9 | $19.14 | |||
10 | $12.11 | |||
11 and Later | $0.00 | |||
Death Benefit | The death benefit is determined as of the date of the Insured’s death. We must receive Notice of due proof of death. The amount we pay to the beneficiary (or beneficiaries) is referred to as the Policy Proceeds. The Policy Proceeds are generally equal to the greater of Policy’s Face Amount and the Cash Value (plus any applicable refund of a portion of annual charges) multiplied by a certain factor specific to the Insured and provided in the Policy. See “DEATH BENEFIT.” All Distribution Payments taken under the GDR reduce the death benefit amount on a dollar for dollar basis, and such reductions could be significant. The GDR guarantees a minimum amount of Policy Proceeds ($10,000). See “Impact of Distribution Payments on Your Policy” under “GUARANTEED DISTRIBUTION RIDER.” |
Charges and Expenses | You will bear the following charges and expenses: (i)Annual Indexed Account Charge; (ii)Annual Administrative Charge; (iii)Annual Cost of Insurance Charge; (iv)GDR Charge; (v)Percent of Premium Charge; and (vi)Surrender Charge, if applicable. The Annual Deduction is comprised of (i) through (iv). See “FEE TABLES” below. |
Charge | When Charge is Deducted | Amount Deducted |
Percent of Premium Charge | On payment of premium | 10% of each premium |
Surrender Charge1 | Upon Surrender or lapse in the first ten Policy Years | |
Maximum | In Policy year 1, $45 per $1,000 of Face Amount | |
Minimum | In Policy year 1, $14.48 per $1,000 of Face Amount | |
Charge for a Representative Insured (The Representative Insured is a male, age 50, in the nonsmoker risk class under a Policy with a Face Amount of $200,000) | In Policy year 1, $22.83 per $1,000 of Face Amount | |
Illustration of Benefits Charge | On provision of each illustration in excess of one per year | $25 per illustration (Not currently charged) |
Charge | When Charge is Deducted | Amount Deducted |
Base Policy Charges | ||
Annual Cost of Insurance Charge1 | On Policy Start Date and each Policy Anniversary | |
Maximum | $1,000 per $1,000 of net amount at risk2 | |
Minimum | $0.74 per $1,000 of net amount at risk2 | |
Charge in the first Policy year for a Representative Insured (The Representative Insured is a male, age 50, in the nonsmoker risk class, under a Policy with a Face Amount of $200,000) | $2.34 per $1,000 of net amount at risk2 | |
Annual Administrative Charge3 | On Policy Start Date and each Policy Anniversary | |
Maximum | $0.65 per $1,000 of Face Amount | |
Minimum | $0.31 per $1,000 of Face Amount | |
Charge in the first Policy year for a Representative Insured (The Representative Insured is a male, age 50, in the nonsmoker risk class, under a Policy with a Face Amount of $200,000) | $0.44 per $1,000 of Face Amount | |
Annual Indexed Account Charge4 | On Policy Start Date and each Policy Anniversary if you allocate to one or more Indexed Accounts | 0.5% of Cash Value in the Indexed Accounts |
Loan Interest5 | Annually6 | 8% on Policy Loan Balance |
Charges for Optional Benefits (Riders) | ||
GDR Charge7 | On Policy Start Date and each Policy Anniversary8 | |
Maximum | $19.40 per $1,000 of the greater of (1) 60% of the Policy’s Face Amount9, or (2) Cash Value. | |
Minimum | $6.08 per $1,000 of the greater of (1) 67% of the Policy’s Face Amount9, or (2) Cash Value. | |
Charge in the first Policy year for a Representative Insured (The Representative Insured is a male, age 50, in the nonsmoker risk class, under a Policy with a Face Amount of $200,000) | $12.50 per $1,000 of the greater of (1) 55% of the Policy’s Face Amount9, or (2) Cash Value. |
INDEXED ACCOUNTS available before the Distribution Start Date | |
TERM | INDEXED ACCOUNT |
BUFFER 100 (100% downside protection) | |
1 Year | S&P 500® Index Russell 2000® Index MSCI EAFE Index |
BUFFER 20 (up to 20% downside protection) | |
1 Year | S&P 500® Index Russell 2000® Index MSCI EAFE Index |
BUFFER 15 (up to 15% downside protection) | |
1 Year | S&P 500® Index Russell 2000® Index MSCI EAFE Index |
BUFFER 10 (up to 10% downside protection) | |
1 Year | S&P 500® Index Russell 2000® Index MSCI EAFE Index |
Buffer Rate | Downside Protection |
Buffer 10 | up to 10% |
Buffer 15 | up to 15% |
Buffer 20 | up to 20% |
Buffer 100 | 100% |
Indexed Account type: | If Segment Index Performance (can be positive, zero or negative) is: | Segment Performance Rate will equal: |
Indexed Accounts with a Cap Rate | •less than zero | •The lesser of: zero or the Segment Index Performance increased by the Buffer Rate (For example: a -15% Segment Index Performance with a Buffer 10 will result in a -5% Segment Performance Rate. The Segment Performance Rate can never be greater than zero if the Segment Index Performance is negative.) |
•Greater than or equal to zero and less than the Cap Rate | •The Segment Index Performance | |
•Greater than zero and equal to or greater than the Cap Rate | •The Cap Rate |
Policy Year | 1 | 2 | 3 | 4 | 5 |
Segment Start Date | |||||
Segment Value(1) | $50,000 | $55,000 | $57,750 | $57,750 | $57,750 |
Closing Value of the Index | 1,000 | 1,200 | 1,260 | 1,260 | 1,197 |
Segment Maturity Date | |||||
Closing Value of the Index | 1,200 | 1,260 | 1,260 | 1,197 | 1,017 |
Segment Index Performance(2) | 20% | 5% | 0% | -5% | -15% |
Cap Rate | 10% | 10% | 10% | 10% | 10% |
Buffer Rate | 10% | 10% | 10% | 10% | 10% |
Segment Performance Rate (one year)(3) | 10% | 5% | 0% | 0% | -5% |
Segment Credit(4) | $5,000 | $2,750 | $0 | $0 | -$2,888 |
Segment Value(5) | $55,000 | $57,750 | $57,750 | $57,750 | $54,862 |
÷ 1,000 [Closing Value of the Index at Segment Start Date]) – 1 = 20%
Segment Start Date | |
Segment Value (before deducting the Annual Deduction)(1) | $51,000 |
Segment Value (after deducting the Annual Deduction)(1) | $50,000 |
Buffer Rate | Buffer 10 |
Cap Rate | 10% |
Closing Value of the Index | 500 |
Interim Segment Value Calculation Halfway Through Term | |
Closing Value of the Index | 600 |
Segment Index Performance(2) | 20% |
Accrued Cap Rate(3) | 5% |
Segment Performance Rate(4) | 5% |
Accrued Index Return(5) | $2,500 |
Interim Segment Value(6) | $52,500 |
÷ 500 [Closing Value of the Index at Segment Start Date]) – 1 = 20%
÷ 365 [total number of days in the Segment Term] = 5%
Segment Start Date | |
Segment Value (before deducting the Annual Deduction)(1) | $51,000 |
Segment Value (after deducting the Annual Deduction)(1) | $50,000 |
Buffer Rate | Buffer 10 |
Cap Rate | 10% |
Closing Value of the Index | 500 |
Interim Segment Value Calculation Halfway Through Term | |
Closing Value of the Index | 400 |
Segment Index Performance(2) | –20% |
Accrued Buffer Rate(3) | 5% |
Segment Performance Rate(4) | –15% |
Accrued Index Return(5) | –$7,500 |
Interim Segment Value(6) | $42,500 |
÷ 500 [Closing Value of the Index at Segment Start Date]) – 1 = –20%
÷ 365 [total number of days in the Segment Term] = 5%
Policy Year | 1 |
Segment Start Date | |
Segment Value (before deducting the Annual Deduction)(1) | $51,000 |
Segment Value (after deducting the Annual Deduction)(1) | $50,000 |
Closing Value of the Index | 1,000 |
Segment Maturity Date | |
Closing Value of the Index | 1,200 |
Segment Index Performance(2) | 20% |
Cap Rate | 10% |
Buffer Rate | Buffer 10 |
Segment Performance Rate (one year)(3) | 10% |
Segment Credit(4) | $5,000 |
Segment Value(5) | $55,000 |
÷ 1,000 [Closing Value of the Index at Segment Start Date]) – 1 = 20%
Policy Year | 2 | |
1-Year Term / Buffer 10 / S&P 500® Index with a Cap Rate of 10% | 1-Year Term / Buffer 10 / Russell 2000® Index with a Cap Rate of 12% | |
Segment Value at Segment Start Date (second term)(1) | $27,500 | $27,500 |
Cash Value Allocations Halfway Through Policy Year | |
Fixed Account Cash Value | $15,000 |
Indexed Account Cash Value | $20,500 |
Holding Account Cash Value | $5,000 |
Loan Account Cash Value | $9,500 |
Cash Value(1) | $50,000 |
Loan Value Calculation Halfway Through Policy Year | |
90% of Cash Value(2) | $45,000 |
Projected Fixed Account interest to the next Policy Anniversary(3) | $67 |
Projected Holding Account interest to the next Policy Anniversary(4) | $22 |
Projected Loan Account interest to the next Policy Anniversary(5) | $42 |
Policy Loan Balance | $10,000 |
Projected Loan Interest to the next Policy Anniversary(6) | $1,810 |
Surrender charge | $2,000 |
Loan Value(7) | $31,321 |
+ $5,000 [Holding Account Cash Value] + $9,500 [Loan Account Cash Value] = $50,000
x (183 [days to the next Policy Anniversary] ÷ 365) = $67
x (183 [days to the next Policy Anniversary] ÷ 365) = $22
x (183 [days to the next Policy Anniversary] ÷ 365) = $42
+ $22 [projected Holding Account interest to the next Policy Anniversary]
+ $42 [projected Loan Account interest to the next Policy Anniversary]) x 8% [Annual Maximum Fixed Loan Interest
x (183 [days to the next Policy Anniversary] ÷ 365) = $1,810
+ $22 [projected Holding Account interest to the next Policy Anniversary]
+ $42 [projected Loan Account interest to the next Policy Anniversary] – $10,000 [Loan Balance]
– $1,810 [projected Loan Interest to the next Policy Anniversary] – $2,000 [Surrender charge] = $31,321
Segment Start Date | |
Segment Value (before deducting the Annual Deduction)(1) | $51,000 |
Segment Value (after deducting the Annual Deduction)(1) | $50,000 |
Buffer Rate | Buffer 10 |
Cap Rate | 10% |
Closing Value of the Index | 500 |
Interim Segment Value Calculation Halfway Through Term | |
Closing Value of the Index | 600 |
Segment Index Performance(2) | 20% |
Accrued Cap Rate(3) | 5% |
Segment Performance Rate(4) | 5% |
Accrued Index Return(5) | $2,500 |
Interim Segment Value(6) | $52,500 |
Loan taken | $20,000 |
Interim Segment Value adjusted by loan amount(7) | $32,500 |
Segment Value adjusted by loan amount(8) | $30,952 |
Segment Maturity Date | |
Closing Value of the Index | 700 |
Segment Index Performance(9) | 40% |
Segment Performance Rate(10) | 10% |
Segment Credit(11) | $3,095 |
Segment Value(12) | $34,047 |
÷ 500 [Closing Value of the Index at Segment Start Date]) – 1 = 20%
÷ 365 [total number of days in the Term] = 5%
x (1-($20,000 [loan taken halfway through the Term] ÷ $52,500 [Interim Segment Value on date of loan])) = $30,952
÷ 500 [Closing Value of the Index at Segment Start Date]) – 1 = 40%
Segment Start Date | |
Segment Value (before deducting the Annual Deduction)(1) | $51,000 |
Segment Value (after deducting the Annual Deduction)(1) | $50,000 |
Buffer Rate | Buffer 10 |
Cap Rate | 10% |
Closing Value of the Index | 500 |
Interim Segment Value Calculation Halfway Through Term | |
Closing Value of the Index | 400 |
Segment Index Performance(2) | –20% |
Accrued Buffer Rate(3) | 5% |
Segment Performance Rate(4) | –15% |
Accrued Index Return(5) | –$7,500 |
Interim Segment Value(6) | $42,500 |
Loan Taken | $20,000 |
Interim Segment Value adjusted by loan amount(7) | $22,500 |
Segment Value adjusted by loan amount(8) | $26,471 |
Interim Segment Value Calculation 9 Months Through Term | |
Closing Value of the Index | 350 |
Segment Index Performance(9) | –30% |
Accrued Buffer Rate(10) | 7.5% |
Segment Performance Rate(11) | –22.5% |
Accrued Index Return(12) | –$5,956 |
Interim Segment Value(13) | $20,515 |
Loan Taken | $10,000 |
Interim Segment Value adjusted by loan amount(14) | $10,515 |
Segment Value adjusted by loan amount(15) | $13,568 |
Segment Maturity Date | |
Closing Value of the Index | 450 |
Segment Index Performance(16) | –10% |
Segment Performance Rate(17) | 0% |
Segment Credit(18) | $0 |
Segment Value(19) | $13,568 |
÷ 500 [Closing Value of the Index at Segment Start Date]) – 1 = –20%
÷ 365 [total number of days in the Term] = 5%
x (1-($20,000 [loan taken halfway through the Term] ÷ $42,500 [Interim Segment Value on date of loan])) = $26,471
÷ 500 [Closing Value of the Index at Segment Start Date]) – 1 = –30%
÷ 365 [total number of days in the Term] = 7.5%
x (1-($10,000 [loan taken halfway through the Term] ÷ $20,515 [Interim Segment Value on date of loan])) = $13,568
÷ 500 [Closing Value of the Index at Segment Start Date]) – 1 = –10%
Segment Start Date | |
Segment Value (before deducting the Annual Deduction)(1) | $51,000 |
Segment Value (after deducting the Annual Deduction)(1) | $50,000 |
Buffer Rate | Buffer 10 |
Cap Rate | 10% |
Closing Value of the Index | 500 |
Interim Segment Value Calculation Halfway Through Term | |
Closing Value of the Index | 600 |
Segment Index Performance(2) | 20% |
Accrued Cap Rate(3) | 5% |
Segment Performance Rate(4) | 5% |
Accrued Index Return(5) | $2,500 |
Interim Segment Value(6) | $52,500 |
Death Benefit Calculation Halfway Through Term | |
Face Amount | $100,000 |
Cash Value(7) | $52,500 |
Annual Deduction refund(8) | $501 |
Applicable minimum death benefit factor(9) | 1.982 |
Death Benefit(10) | $105,048 |
÷ 500 [Closing Value of the Index at Segment Start Date]) – 1 = 20%
÷ 365 [total number of days in the Segment Term] = 5%
x (183 [days to the next Policy Anniversary] ÷ 365) = $501
x 1.982 [applicable minimum death benefit factor]) = $105,048
When Election is Made | Options and Limitations | Impact to Distribution Payment amounts | |
Distribution Payment Duration | At the time you purchase the Policy, although you can make a change when you send us Notice to start Distribution Payments | The available durations are 10-year, 20-year, and lifetime (up to Attained Age 121). If you choose to receive the Maximum Distribution Payment, Distribution Payments will be made for the length of the Distribution Payment Duration associated with the applicable Maximum Distribution Payment. If you do not select a duration, we will not issue the Policy. | In general, a shorter Distribution Payment Duration means a higher Maximum Distribution Payment. |
Distribution Payment Frequency | At the time you purchase the Policy, although you can make a change when you send us Notice to start Distribution Payments | The available frequencies are annual, semi- annual, quarterly, or monthly basis. If you do not select a frequency, we will not issue the Policy. | If you choose to receive Distribution Payments on a basis other than annual, the cumulative Distribution Payments for each year may be higher than if you chose an annual Distribution Payment because of the Distribution Frequency Factor. See the table under “Distribution Payment Frequency” to see how the Distribution Frequency Factor impacts the Maximum Distribution Payment. |
Distribution Payments Start Age | Annual Guaranteed Minimum Distribution Payment |
60 - 64 | $9,980 |
65 - 69 | $14,640 |
70 -120 | $16,100 |
Annual | Semi-Annual | Quarterly | Monthly | |
Distribution Frequency Factor | N/A | 0.5066 | 0.2550 | 0.0854 |
Guaranteed Minimum Distribution Payment | $15,000 | $7,599 ($15,000 x 0.5066) | $3,825 ($15,000 x 0.2550) | $1,281 ($15,000 x 0.0854) |
Maximum Distribution Payment | $20,000 | $10,132 ($20,000 x 0.5066) | $5,100 ($20,000 x 0.2550) | $1,708 ($20,000 x 0.0854) |
Number of Distribution Payments in 1 Year | 1 | 2 | 4 | 12 |
Total of Distribution Payments Received in 1 Year (if receiving Guaranteed Minimum Distribution Payment) | $15,000 | $15,198 ($7,599 x 2) | $15,300 ($3,825 x 4) | $15,372 ($1,281 x 12) |
Total of Distribution Payments Received in 1 Year (if receiving Maximum Distribution Payment) | $20,000 | $20,264 ($10,132 x 2) | $20,400 ($5,100 x 4) | $20,496 ($1,708 x 12) |
Voluntarily Suspending Distribution Payments | Allocation Instructions | Action We Will Take |
If you direct us to suspend Distribution Payments on a Policy Anniversary | and you have provided us instructions to reallocate Cash Value to the Indexed Accounts | On that Policy Anniversary, we will transfer, in accordance with your instructions, all or a portion of the Fixed Account Cash Value to the Indexed Accounts. The Segment Start Date for the new Segments will be the Policy Anniversary. |
If you direct us to suspend Distribution Payments on any day other than a Policy Anniversary | and you have provided us instructions to reallocate Cash Value to the Indexed Accounts | Your Cash Value will remain in the Fixed Account until the next Policy Anniversary, at which time we will reallocate according to your instructions. |
and you have not provided us instructions to reallocate Cash Value to the Indexed Accounts | Your Cash Value will remain in the Fixed Account until you provide us instructions to reallocate, which will take effect on the Policy Anniversary after we receive your instructions. |
Beginning of Year | The Maximum Surrender Charge per $1,000 of Face Amount |
1 | $45.00 |
2 | $42.67 |
3 | $40.67 |
4 | $38.14 |
5 | $35.10 |
6 | $26.60 |
7 | $25.48 |
8 | $23.31 |
9 | $19.14 |
10 | $12.11 |
11 and Later | $ 0.00 |
Premium Payments | BLIC P.O. Box 956067 St. Louis, MO 63195-6067 |
Beneficiary and Ownership Changes | BLIC P.O. Box 305075 Nashville, TN 37230-5075 Phone: (800) 882-1292 Or Fax to: Policyholder Services (877) 246-8424 |
Surrenders, Loans, and Transfers | BLIC P.O. Box 305075 Nashville, TN 37230-5075 Phone: (800) 882-1292 Or Fax to: Policyholder Services (877) 246-8424 |
Cancellations (Right to Examine Policy Period) | BLIC P.O. Box 305075 Nashville, TN 37230-5075 Phone: (800) 882-1292 Or Fax to: Policyholder Services (877) 246-8424 |
Death Claims | BLIC P.O. Box 305074 Nashville, TN 37230-5074 Phone: (800) 882-1292 Or Fax to: Claims (877) 245-8163 |
All Other Policy Transactions and Inquiries | BLIC P.O. Box 305075 Nashville, TN 37230-5075 Phone: (800) 882-1292 Monday through Friday, 8:30AM to 6:30PM Eastern Time Or Fax to: Policyholder Services (877) 246-8424 |
FOR SECURITIES ACT LIABILITIES
Segment Value at Segment Start Date | $100,000 |
Segment Term | 1-Year |
Initial Index | S&P 500® Index |
S&P 500® Closing Value of the Index on Segment Start Date | 1,400 |
Cap Rate | 10% |
Buffer Rate | 10% |
Index substitution | |
Number of days since Segment Start Date | 183 |
Closing Value for S&P 500® Index | 1,330 |
Segment Index Performance for S&P 500® Index(1) | –5% |
Substituted Index | Russell 2000® Index |
Closing Value for Russell 2000® Index on substitution date | 1,250 |
Closing Value for Russell 2000® Index | 1,375 |
Segment Index Performance for S&P 500® Index(1) | –5% |
Segment Index Performance for Russell 2000® Index(2) | 10% |
Total Segment Index Performance for the Segment Term(3) | 4.5% |
Cap Rate | 10% |
Buffer Rate | 10% |
Segment Performance Rate(4) | 4.5% |
Segment Credit(5) | $4,500 |
Segment Value at Segment Maturity Date(6) | $104,500 |
÷ 1400 [Value of Index at Segment Start Date]) = –5%
÷ 1250 [Value of Index at date of substitution]) = 10%
x (1375 [substituted Index Value at Segment Maturity Date] ÷ 1250 [substituted Index at substitution date]) –1 = 4.5%
Minimum Death Benefit Factor | ||
Age | Male | Female |
40 | 2.254 | 2.385 |
50 | 1.885 | 1.982 |
60 | 1.584 | 1.657 |
70 | 1.348 | 1.400 |
80 | 1.177 | 1.205 |
90 | 1.064 | 1.072 |
100 | 1.001 | 1.001 |
120 | 1.001 | 1.001 |
Part II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution
The following is an itemized list of the estimated expenses to be incurred in connection with the securities being offered:
Accountant’s Fees and Expenses: $7,950
Legal Fees and Expenses: $45,000
Printing Expenses: $5,240
Registration Fee: $55,100
Item 15. Indemnification of Directors and Officers
Pursuant to applicable provisions of the Registrant’s by-laws or internal corporate policies adopted by the Registrant or its ultimate parent, the directors, officers and other controlling persons of the Registrant who are made or threatened to be made a party to an action or proceeding, may be eligible to obtain indemnification against judgments, fines, amounts paid in settlement and reasonable expenses, including attorneys’ fees, incurred as a result of such action or proceeding. Under the principal underwriting agreement between the Registrant and the Underwriter, the parties have agreed to indemnify each other against certain liabilities and expenses from legal proceedings arising out of the Underwriter’s distribution of the Contracts. BLIC also maintains insurance policies insuring its directors and officers against certain liabilities they may incur in their capacity as such.
Item 16. Exhibits
Exhibit | ||
Number | Description | |
25. | None. | |
96. | None. | |
99. | None. | |
101. | None. | |
107. | Filing Fee Table. (Filed as Exhibit 107 with Registration Statement No. 333-268618 on Form S-3 on November 30, 2022 and incorporated herein by reference.). |
Item 17. Undertakings
The undersigned registrant hereby undertakes as follows, pursuant to Item 512 of Regulation S-K:
1. | To file, during any period in which offers or sales of the registered securities are being made, a post-effective amendment to this registration statement: |
i. | to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933; |
ii. | to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement; Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price set represent no more than 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement, and |
iii. | to include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement. |
Provided, however, that Paragraphs 1.i, 1.ii, and 1.iii do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.
2. | That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
3. | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
4. | That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. |
5. | That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: |
i. | Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; |
ii. | Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; |
iii. | The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and |
iv. | Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. |
6. | The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
7. | Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. |
(Registrant)
Donald A. Leintz Vice President
/s/ Eric Steigerwalt* Eric Steigerwalt | Chairman of the Board, President, Chief Executive Officer and a Director |
/s/ Myles Lambert* Myles Lambert | Director |
/s/ David A. Rosenbaum* David A. Rosenbaum | Director |
/s/ Jonathan Rosenthal* Jonathan Rosenthal | Director |
/s/ Edward A. Spehar* Edward A. Spehar | Director, Vice President and Chief Financial Officer |
/s/ Kristine Toscano* Kristine Toscano | Vice President and Chief Accounting Officer |
/s/ Gianna H. Figaro-Sterling* Gianna H. Figaro-Sterling | Vice President and Controller |
*By: /s/ Michele H. Abate Michele H. Abate, Attorney-In-Fact June 21, 2023 |
* Brighthouse Life Insurance Company. Executed by Michele H. Abate, Esquire on behalf of those indicated pursuant to powers of attorney filed herewith.