Equitable Life has introduced a 100% guarantee class for its Pivotal Select segregated funds.
Equitable's new Protection Class provides a 100% maturity benefit guarantee as well as a 100% non-reducing death benefit guarantee. Protection Class will offer the same 28 funds that are already available in the company's other two seg fund options, the Investment Class (75/75) and the Estate Class (75/100).
As with the Estate Class, clients may obtain added protection in Protection Class by resetting the guarantees once a year up to age 80, although the contract gives the insurer the right to modify or withdraw this reset feature in future. The higher, 100% guarantee also means that there are additional fees; Equitable's Fund Facts document reveals that in most cases the Protection Class guarantee fees are about double those of the Estate Class. Funds invested in Protection Class can be held under both a deferred sales charge option, and no load sales charge option.
The Waterloo-based insurer notes that assignment of policyholder authorization is now directly included and can be elected on application, and that clients also have the option of adding automatic, annual pre-authorized debit increases based on a dollar amount or on a percentage.