Brighthouse SmartGuard PlusSM
An index-linked life insurance product with a Guaranteed Distribution Rider (GDR), automatically included with the policy on the issue date for an additional charge, designed to offer protection today and the flexibility to address future needs by providing:
- Growth opportunities and a level of protection
- Guaranteed Distribution Payments
- A guaranteed death benefit
How It Works
By participating in index-linked growth strategies, policy values can potentially grow with a level of protection from market loss to help meet future goals.
This life insurance product provides a source of tax-advantaged guaranteed Distribution Payments that will never fall below a guaranteed minimum amount.1
Brighthouse SmartGuard Plus helps provide security for loved ones through a guaranteed death benefit that’s generally income tax free.2
As an index-linked life insurance product, Brighthouse SmartGuard Plus tracks the performance of one or more market indices and does not invest directly in the markets. Once Distribution Payments begin, all policy values are transferred to the Fixed Account and there is no further participation in index-linked market performance.
The primary purpose of the policy is to provide life insurance protection. It is designed to be held over the long term, is not offered primarily as an investment, and should not be used as a short-term savings vehicle. Various negative consequences can occur if the client fails to hold the policy long term.
After the 10th policy year, Distribution Payments are available through the GDR and are paid in the form of policy loans. Loan balances are charged interest up to 8% annually. Under the GDR, the policy’s cash value will increase when necessary to prevent policy loans from causing the policy to lapse.
Interactive Tool
See for yourself how Brighthouse SmartGuard Plus works.
Product Video
Explore how Brighthouse SmartGuard Plus can help protect Shonda’s loved ones and address her future needs.
Resources
Explore these Brighthouse SmartGuard Plus resources and product materials to help you have deeper conversations with your clients.
1 Available after the 10th policy year, Distribution Payments under the GDR are in the form of policy loans and can significantly reduce the unloaned cash value and death benefit amount. When the cash value reaches zero, the GDR will continue to support the availability of Distribution Payments. See the prospectus for more details. A policy loan is generally not treated as a taxable distribution, but exceptions may apply. Clients should consult with a tax professional.
2 Policy loans may significantly reduce the death benefit; however, the GDR guarantees a minimum death benefit amount, assuming the policy and GDR remain in force. While the death benefit is generally income tax free, exceptions may apply. Other taxes including estate, gift, or generation-skipping transfer taxes may also apply. Clients should consult with a tax professional.
Brighthouse Life Insurance Company (BLIC) holds any net premium amounts applied to an Indexed Account in a Separate Account. BLIC maintains assets in the Separate Account at least equal to the policy’s required reserves, which equals the policy reserves associated with the Indexed Accounts. Required reserves do not include reserves held in the Fixed Account, reserves for outstanding loans, or reserves associated with Distribution Payments or One-Time Payments. BLIC is obligated to pay all money owed under the policy, including policy proceeds and Distribution Payments, even if that amount exceeds the assets in the Separate Account. Any such amount that exceeds the assets in the Separate Account is paid from the BLIC General Account. Amounts paid from the General Account are subject to the financial strength and claims-paying ability of BLIC and are not guaranteed by any other party.
Distribution Payments under the Guaranteed Distribution Rider are made in the form of policy loans. A policy loan is generally not treated as a taxable distribution if the policy is not a modified endowment contract (MEC) as defined under Internal Revenue Code Section 7702A and the policy remains in force during the lifetime of the insured. As a result, the company generally does not intend to report the benefits payable under the GDR to the IRS as taxable income based upon our current understanding of applicable tax law. Taxation and tax reporting may apply if the policy lapses, is surrendered, or becomes a MEC. The tax law is complex and subject to change. The company’s tax reporting position may change in the future due to future IRS guidance as well as any clarifications or changes to applicable tax law. The company cannot guarantee particular tax results. Any discussion of taxes is for general informational purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax, or accounting advice. Clients should confer with their qualified legal, tax, and accounting professionals to determine the tax consequences of the GDR and the policy.
All guarantees, including any optional benefits, are subject to the claims-paying ability and financial strength of the issuing insurance company. Each issuing insurance company is solely responsible for its own financial condition and contractual obligations.
Brighthouse SmartGuard Plus℠ is a registered index -linked flexible premium adjustable life insurance policy with a Guaranteed Distribution Rider (GDR) issued by, and product guarantees are solely the responsibility of, Brighthouse Life Insurance Company, Charlotte, NC 28277, on Policy Forms 5-71-22 and 5GDR-22 (“Brighthouse Financial”). This product is distributed by Brighthouse Securities, LLC (member FINRA). All are Brighthouse Financial affiliated companies. The prospectus and policy contain information about the policy’s features, risks, charges, expenses, exclusions, limitations, termination provisions, and terms for keeping the policy in force. The prospectus and complete details about the policy are available from your financial professional and should be read carefully. Product availability and features may vary by state or firm. This product is currently not available in New York.
