1. Good morning/afternoon. I’m __________ with Brighthouse Financial
Good morning/afternoon! I’m __________ with Brighthouse Financial. Wouldn’t it be great if your clients were able to enter their golden years with more confidence? Well, here’s the good news: obtaining financial confidence isn’t out of reach. It’s just a matter of understanding today’s economic climate and learning new ways to work within it.
Today we’re going to take a look at the market conditions facing investors. We’ll discuss the Brighthouse Shield Level 10 Annuity and how it offers clients ways to protect a portion of their retirement assets while allowing them to participate in growth opportunities. And lastly, we’re going to discuss how to position this product with your clients.

2. That said, let’s examine today’s equities market to understand why consumers may be seeking some protection, and why their concern is not unfounded.

3. It’s no secret that equities offer excellent potential for retirement savings growth. Even in volatile times, investing – and staying invested – has the potential to make a big impact on your clients’ future retirement success. Perhaps you’re saying, “true, but equities are performing really well right now” and you would be right. The real question is where do you think they’ll go from here? Up? Down? Naturally, no one knows. Perhaps now would be a great time for your clients to consider strategies that could help protect a portion of their retirement assets.
Traditionally, this might mean moving retirement income to conservative, interest-bearing investments, such as treasuries. However, with interest rates still close to their all-time low, the “go-to” products for safety and reliability may not generate enough returns to support your clients’ needs.
So, with that said, wouldn’t it be great if your clients could receive some protection from market declines while participating in the growth potential the markets offer?
Well, there are products we offer that help provide your clients with exactly that. But, before we take a look at these strategies, let’s consider another point: The cost of volatility.

4. Perhaps you or your clients think that volatility is very important when you’re taking distributions from your portfolio, and you’re right. But, did you know that there is a cost to volatility even if your client is not taking withdrawals? This is true because generally speaking, market declines may have a greater impact on clients' portfolios than market gains. That’s because the money left after the loss has to work harder just to get back to your original investment.
[Read Graph]
Let’s look at another example. You may be surprised how much volatility can affect a client’s account.

5. [Read Graph]
Losing less each year means your clients may be able to make more over the long term because they’ve retained more money to potentially grow with. Simply stated, each dollar protected from loss is another dollar made available for growth during times of market gains, which can help clients accumulate more over time.

6. [Read Slide] With all that being said, where do we go from here
[Read Slide] With all that being said, where do we go from here? I’m glad you asked!

7. The Brighthouse Shield Level 10 annuity offers a combination of protection and participation in growth opportunities. That’s because it’s one part protection against loss, one part long-term investment as growth and losses to the account are determined by tracking the index or indices to the Shield Option chosen. And your clients get to choose which level of protection is right for them.
Note that Shield Level 10 does not invest directly in any index. Performance is measured against the index or indices and the Shield Option your client chooses. Any earnings or losses will be credited to the account value at the end of the term, and if the selected index has not experienced a gain or loss, the account value will remain unchanged. If a Step Rate is selected and the index is flat, the client would get the Step Rate.

8. To learn more about this product and strategy, stay tuned for the next presentation or let’s get together and discuss how this strategy can fit into your book of business with your clients.

10. SM
Good morning/afternoon! I’m __________ with Brighthouse Financial. As many clients near retirement, they begin to become cautious about the performance of the market because they’ll soon need their money to live on — one of the biggest risks of investing is taking withdrawals while the markets are declining. That’s because losses and withdrawals, when combined, can impact the clients’ account value significantly. That’s why many clients — both those who are protection-minded who want to protect their nest eggs and those who are growth-oriented who want to use parts of their portfolios to hedge against losses — are looking for a strategy that will help them protect their retirement assets and participate in growth opportunities. That’s where Brighthouse Shield Level 10 fits into the story…

11. By protecting some portion of a client’s account value against loss, the account can grow from a point of strength.
[Read Slide]
Take a look at this hypothetical example, which is for illustrative purposes only – Let’s say that the indices had negative performance in years 1 and 2.
Had your client purchased Shield Level 10 and chosen the Shield 10 (10% protection from index loss) and chosen to track the same indices in this hypothetical example, Brighthouse Financial would have absorbed the first 10% of loss for each index tracked. Shield Level 10 helps your clients protect against some or all of index loss so the impact of negative returns on the client’s account value is mitigated. There are only 4 easy steps to getting started.

12. Before we begin, it’s important to note that Shield Level 10 is not intended for a client’s entire retirement portfolio. Diversification is an important strategy to help manage investment risk, and your clients should first select the portion of their assets they’d like to protect for placement in the Shield Level 10. That said, next you’ll work with your client through these four steps:
Second, they will choose which index or indices they’d like their investment measured against — Note that Shield Level 10 doesn’t invest directly in any index.
Third, with your client, decide which combination would work best for them. Each Shield Option combines a level of protection, also known as a “Shield Rate”, with a Maximum Growth Opportunity (MGO), also known as the “Cap Rate” in the contract and prospectus. The MGO is the maximum percentage the client can earn for the term they choose. Each rate will vary depending on the level of protection, index and term chosen.
Your client’s Shield Option performance will be determined at the end of each term. The way we do this is straightforward: Brighthouse Financial compares the ending index value to the index value at the beginning of the term then factors in the level of protection chosen if the index is down, or up to their Maximum Growth Opportunity or Step Rate. If the Step Rate is chosen and the index is flat or up, the client will receive the Step Rate. At the end of each term, your client has the flexibility to choose one or more new Shield Options or remain in their current options. Questions? [answer questions] Let me show you a couple of hypothetical illustrations as possible examples of how Shield Level 10 might perform …

13. Let’s assume you invest in Shield Level 10 and choose Shield 10 with a one-year term, and an associated Maximum Growth Opportunity of 8%.
In down market scenario A: [Read Slide]
In down market scenario B: [Read Slide]
[Click enter to animate to next image]
Now, let’s look at what would have happened if the markets increased instead of had a decline. This scenario uses the same hypothetical Shield level of protection, term and Maximum Growth Opportunity:
In exchange for protection against loss, like we’ve just seen, your clients’ account value only has the opportunity to grow up to a predetermined amount, known as their MGO (spelled out). Let’s see what would happen in a growing market scenario.
In scenario A: [Read Slide]
In scenario B: [Read Slide]

14. First, through customization, your clients can allocate their Shield Level 10 account value across available indices. Total allocations must add up to 100%, but each allocation will be measured against the particular index chosen. This offers a number of asset allocation possibilities. Your clients can also choose one of the Step Rate choices if they want to know for certain what return they’ll receive in up or flat markets.
Second, Shield Level 10 is a tax-deferred annuity, which means your clients don’t pay taxes on their earnings until they withdraw them or they’re distributed. And, because your clients aren’t paying taxes on the earnings each year, they’ll make more over the long term because they’ve retained more money to use for growth potential. [read footnote 1]
Third, although Shield Level 10 is designed as a long-term accumulation vehicle, if something unexpected happens and your client should need money during their term, they can withdraw up to 10% of their account value each year without withdrawal charges, starting the second contract year. Please see the Shield Level 10 prospectus for complete details.
Withdrawals of taxable amounts are subject to ordinary income tax and if made before age 59½, may be subject to a 10% federal income tax penalty. Distributions of taxable amounts from a non-qualified annuity may also be subject to the 3.8% Unearned Income Medicare Contribution Tax on Net Investment Income if your modified adjusted gross income exceeds the applicable threshold amount. Withdrawals will reduce the death benefits and account value.

15. Good morning/afternoon! I’m __________ with Brighthouse Financial.
Today we’re here to talk about the Brighthouse Shield Level 10 which may be able to provide your clients an opportunity to protect a portion of their retirement assets while allowing them to participate in growth opportunities. Now that you understand the product and why protection is important to many clients, let’s look at how to open the conversation with your clients.
In today’s market environment, the right positioning and language can help you deepen client relationships and build trust. That’s why, at Brighthouse Financial, we worked with maslansky + partners to develop the language that works for the Brighthouse Shield Level 10 annuity. The client research we conducted was specifically designed to uncover the exact words, phrases and positioning that resonate with clients. To start, we will first look at who the target market is for Shield Level 10 …

16. According to our research, and supported by the research of maslansky + partners, we’ve identified a target client profile that may help you prospect your book of business. First, these are clients who are approaching retirement and want to protect a portion of the retirement savings they’ve worked so hard to accumulate over the years. But rather than sticking the money in their mattresses to protect it, they’d like to enjoy the potential for growth. Here’s what the research has shown about this audience:
• They were born roughly 55 to 65 years ago, so they’ve lived through numerous bear markets and major market fluctuations. Remember the market downturns of 2002 and 2008? Yeah? Your clients do too.
• Now they’re approaching retirement age and they’re concerned about their investments.
• Not surprising, 63% of consumers are concerned about market volatility.
• So, here they’re retiring, worried about finances — and since people today are living longer, and enjoying more productive lives — they’re wondering if they’ll have enough money to live a long, comfortable retirement.
• Plus, with the population of those age 85 or older expecting to triple from 5.7 million in 2011 to 14.1 million in 2040 — and some people spending 20 to 30 years in retirement, which is a long time for retirees to have to live on savings — it’s no wonder your clients are concerned.
Perhaps we can help alleviate some of their worries; help them prepare for a long, comfortable retirement. Especially those who aren’t feeling especially prepared.

17. One of our key findings is the most effective way of communicating how this product works is through protection and participation.
[READ SLIDE]
Please note: Shield Level 10 is a protection product first and foremost. Clients may be receptive to messages about the product’s growth and index participation when it’s positioned as an additional benefit, following protection.
Investors are very interested in having some control over their retirement strategy; therefore, the ability to personalize and change their allocations as their outlooks and needs change is also very important.

18. Throughout the discussion about Shield Level 10 with your clients, it’s good to use certain language that will make the conversations more effective.
When you tell the story of Shield Level 10, there’s certain language you’ll want to use and language you’ll want to avoid. Let’s go through a sample of it now, starting with keeping the protection language first, as we just discussed.
[READ SLIDE]
If you’d like to learn more, please contact the Sales Desk.

19. Once you’ve identified clients who may be interested in Shield Level 10, questions like these can help start the conversations.
[READ SLIDE]
After that, it’s best to position the benefits of the product.

20. Interested in learning more
Interested in learning more? Here are the next steps for you to take now…
[Read Slide]
Are there any questions?
Thank you very much for your time.