EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA,
domiciled in Arizona
STANDARD 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 Standard Segments which are introduced below. In this Rider,
“we”, “our” and “us” mean Equitable Financial Life Insurance Company of America, “you” and “your” mean the Owner and “Rider” means this Rider.
This Rider is effective immediately.
The following is added
to the definition of Segment Rate of Return:
SECTION [2.01(n)] SEGMENT RATE OF RETURN
For the Standard Segment Option, your Segment Rate of Return on Segment Maturity Date is determined as follows:
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| If the Index Performance Rate: |
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Then the Segment Rate of Return will be: |
| When multiplied by
the Participation Rate is greater than the Performance Cap Rate |
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Equal to the Performance Cap Rate[, minus the cumulative Contract Fee] |
| When multiplied by
the Participation Rate is positive and 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 cumulative Contract Fee] |
| Is between zero and the Segment Buffer, inclusive of both |
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Equal to 0%[, minus the cumulative Contract Fee] |
| Is more negative than the Segment Buffer |
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Negative to the extent the percentage decline exceeds the Segment Buffer[, minus the cumulative Contract
Fee] |
The following is added to the Segment Interim Value section:
SECTION [2.04] SEGMENT INTERIM VALUE
For the Standard
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 three different hypothetical options: (1) buying an At-the-Money Call Option, (2) selling an
Out-of-the-Money Call Option, and (3) selling an Out-of-the-Money Put Option.
“At-the-Money Call Option” gives the right to buy the relevant
Index equal to the Segment Investment multiplied by the Participation Rate 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 multiplied by the Participation Rate on the scheduled Segment Maturity Date, at the Index price on the Segment Start Date increased by (the Performance Cap Rate
divided by the Participation 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.
RIDER CHARGE
There is no charge for this Rider.
EQUITABLE FINANCIAL LIFE INSURANCE COMPANY OF AMERICA
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| Mark Pearson, Chief Executive Officer] |
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José Ramón González Chief
Legal Officer and Secretary] |