| Risk | Explanation | |-------|-------------| | | You lose upside beyond the cap, even if index soars. | | Shield only at term end | Intra-term losses are not shielded if you withdraw early. | | Credit risk | Brighthouse is the guarantor; if it becomes insolvent, protection may fail (state guaranty associations have limits, typically $250k). | | Inflation risk | Caps may be below inflation, eroding purchasing power. | | Surrender & MVA risk | Early withdrawals can trigger significant penalties and negative MVA. | | Index dividend exclusion | You do not receive dividends from index stocks. | | Renewal risk | Caps, shields, and participation rates reset each term and may be lower. |
It is impossible to discuss this prospectus without noting the regulatory context. The Financial Conduct Authority (FCA) investigated BrightHouse regarding how these products were sold. brighthouse shield level select prospectus