The prospectus opens with the product’s headline feature: downside protection through “Shield” levels (e.g., Shield 10, Shield 15, or Shield 25), which absorb a percentage of market losses before you feel any impact. However, as the document clarifies in bold type: If you take money out early, you may lose principal even if the Shield level hasn’t been breached.
Early withdrawals trigger surrender charges that can last , per the prospectus. Charges start around 8–9% in year one and phase out slowly. Free withdrawal provisions allow 10% of contract value annually without penalty, but anything beyond that triggers fees. For the first several years, accessing your own money can cost thousands. brighthouse shield annuity prospectus
Based on the typical prospectus structure for this product, here is an informative breakdown of how it works, the mechanics involved, and the fine print you need to know. The prospectus opens with the product’s headline feature:
While the prospectus is exhaustive, it doesn’t interpret market scenarios for you. Example: If the index drops 30% and you have a Shield 25, the Shield absorbs 25% of the loss, but you still experience a 5% loss (minus fees). Many investors misread this as “full principal protection” — but the prospectus’s numerical examples clarify otherwise. Charges start around 8–9% in year one and phase out slowly
Annuities are long-term commitments. The prospectus details the "Surrender Schedule."