EQUITABLE FINANCIAL LIFE INSURANCE COMPANY,
domiciled in New York
[LOSS LIMITER] SEGMENT OPTION RIDER
This
Rider is part of your Contract, and its provisions apply in lieu of any Contract provisions to the contrary. There are new definitions in this Rider that are applicable to [Loss Limiter] Segments which are introduced below. In this Rider,
“we”, “our” and “us” mean Equitable Financial Life Insurance Company, “you” and “your” mean the Owner and “Rider” means this Rider.
This Rider is effective immediately.
The following is added
to Part II of your Contract:
“[Segment Investment Protection Level]” is a percentage that is used to determine the amount of downside
protection on a negative return for a given [Loss Limiter] Segment when calculating your Segment Rate of Return on the Segment Maturity Date, subject to Section [2.01(n)] shown below. The [Segment Investment Protection Level] associated with each
[Loss Limiter] Segment is shown in your Data Pages under the Structured Investment Option listing of Segment Types and is shown in the Segment Type’s name.
The following is added to the definition of Segment:
SECTION [2.01(e)] SEGMENT
For [Loss Limiter]
Segments, “Segment” means an Investment Option we establish with a specific Index, [Segment Investment Protection Level], Segment Duration, Segment Buffer, Segment Maturity Date, Performance Cap Rate, and Participation Rate.
The following is added to the definition of Segment Rate of Return:
SECTION [2.01(n)] SEGMENT RATE OF RETURN
For the [Loss
Limiter] Segment Option, your Segment Rate of Return is equal to the greater of (a) and (b) described below as follows:
where
(a) is equal to:
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| If the Index Performance Rate multiplied by the Participation Rate: |
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Then the Segment Rate of Return will be: |
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| Exceeds the Performance Cap Rate |
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Equal to the Performance Cap Rate[, minus the Return of Premium Death Benefit (“ROP DB”) Rider Charge
cumulative percentage for the Segment duration as described in Section III of the ROP DB Rider if the ROP DB Rider is elected]. |
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| Is positive but is less than or equal to the Performance Cap Rate |
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Equal to the Index Performance Rate multiplied by the Participation Rate[, minus the ROP DB Rider Charge cumulative percentage for the Segment duration
as described in Section III of the ROP DB Rider if the ROP DB Rider is elected]. |
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| Is zero or negative by a percentage equal to or less than the Segment Buffer |
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Equal to 0%[, minus the ROP DB Rider Charge cumulative percentage for the Segment duration as described in Section III
of the ROP DB Rider if the ROP DB Rider is elected]. |
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| Is more negative than the Segment Buffer |
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Negative, to the extent the percentage decline exceeds the Segment Buffer[, minus the ROP DB Rider Charge cumulative
percentage for the Segment duration as described in Section III of the ROP DB Rider if the ROP DB Rider is elected]. |
and where (b) is equal to:
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the [Segment Investment Protection Level] shown in your Data Pages minus 1[, minus the ROP DB Rider Charge
cumulative percentage for the Segment duration as described in Section III of the ROP DB Rider if the ROP DB Rider is elected]. |
The
following is added to the definition of Segment Type:
SECTION [2.01(r)] SEGMENT TYPE
For [Loss Limiter] Segments, “Segment Type” means all [Loss Limiter] Segments that have the same Index, [Segment Investment
Protection Level], Segment Duration, Segment Buffer, and Participation Rate. The [Loss Limiter] Segment Type(s) currently available under your Contract are shown in your Data Pages.
The following is added to the Segment Interim Value section:
SECTION [2.04] SEGMENT INTERIM VALUE
For the Loss
Limiter Segment Option, at the time the Segment Interim Value is determined, the Fair Value of Hypothetical Derivatives is calculated using an option pricing model for valuing several different hypothetical options: (1) buying an At-the-Money Call Option, (2) selling an
Out-of-the-Money Call Option, (3) selling an Out-of-the-Money Put Option, and (4) buying an Further Out-of-the-Money Put
Option.
At-the-Money Call Option gives the right to buy the relevant
Index equal to the Segment Investment on the scheduled Segment Maturity Date, at the Index price on the Segment Start Date.
Out-of-the-Money Call Option gives the right to buy the relevant Index equal to the Segment Investment on the scheduled Segment
Maturity Date, at the Index price on the Segment Start Date increased by the Performance Cap Rate.
Out-of-the-Money Put Option gives the right to sell the relevant Index equal to the Segment Investment on the scheduled Segment Maturity Date, at the Index price on the
Segment Start Date decreased by the Segment Buffer.
Further Out-of-the-Money Put Option gives the right to sell the relevant Index equal to the Segment Investment on the scheduled Segment Maturity Date, at the Index price on the Segment Start Date decreased by
the Segment Investment Protection Level less 1 less the Segment Buffer.
RIDER CHARGE
There is no charge for this Rider.
EQUITABLE FINANCIAL LIFE
INSURANCE COMPANY
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| [
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[
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| Mark Pearson, Chief Executive Officer] |
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José Ramón González
Chief Legal Officer and Secretary] |