497 1 d811615d497.htm BRIGHTHOUSE ACCUMULATION ANNUITY SUPPLEMENT DATED MAY 1, 2020 Brighthouse Accumulation Annuity Supplement Dated May 1, 2020
The Variable Annuity Contract
issued by
BRIGHTHOUSE LIFE INSURANCE COMPANY
and
BRIGHTHOUSE SEPARATE ACCOUNT ELEVEN FOR VARIABLE ANNUITIES
Brighthouse Accumulation Annuity
Supplement Dated May 1, 2020
to the Prospectus Dated May 1, 2017
This supplement updates certain information contained in your last prospectus dated May 1, 2017 for the Brighthouse Accumulation Annuity variable annuity contract issued by Brighthouse Life Insurance Company (Brighthouse or we or us). We no longer offer the contract to new purchasers. You should read and retain this supplement with your contract.
The contract has a single investment choice. We may add additional Investment Options in the future.
Fidelity® Variable Insurance Products — Investor Class
Fidelity VIP FundsManager 60% Portfolio
In accordance with regulations adopted by the Securities and Exchange Commission, beginning on or after January 1, 2021, paper copies of the shareholder reports for the Investment Option available under your variable annuity contract will no longer be sent by mail, unless you specifically request paper copies of the reports from Brighthouse. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from Brighthouse electronically by contacting the Annuity Service Office or calling (866) 414-3259 to enroll.
You may elect to receive all future reports in paper free of charge. You can inform us that you wish to continue receiving paper copies of your shareholder reports by calling (800) 638-7732, or by sending an email correspondence to rcg@brighthousefinancial.com.
Inquiries. If you need more information, please contact our Annuity Service Office at:
Annuity Service Office
PO Box 10366
Des Moines, IA 50306-0366
(866) 414-3259
Electronic Delivery. As an Owner you may elect to receive electronic delivery of current prospectuses related to this contract, prospectuses and annual and semi-annual reports for the Investment Option and other contract-related documents.
Contact the Annuity Service Office for more information and to enroll.
We are not a fiduciary and do not give advice or make recommendations regarding insurance or investment products. Ask your financial representative for guidance regarding any requests or elections and for information about your particular investment needs. Please bear in mind that your financial representative, or any financial firm or financial professional you consult to provide advice, is not acting on our behalf. We do not recommend and are not responsible for any securities transactions or investment strategies involving securities (including account recommendations).

 

FEE TABLES AND EXAMPLES
The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. The first table describes the fees and expenses that you will pay at the time that you buy the contract, surrender the contract, or, if additional Investment Options are added in the future, transfer Account Value between Investment Options. State premium taxes of 0% to 3.5% may also be deducted.
Owner Transaction Expenses Table  
Withdrawal Charge (Note 1)
(as a percentage of Purchase Payment withdrawn) 		2%
Transfer Fee (Note 2) $ 25
(First 12 per year) $ 0
Note 1. If an amount withdrawn during the first seven Contract Years is determined to include the withdrawal of any portion of the Purchase Payment, a withdrawal charge may be assessed. Withdrawal charges are calculated in accordance with the following. (See “Expenses—Withdrawal Charge.”)
Number of Complete Years from
Contract Date 		  Withdrawal Charge
(% of Purchase Payment withdrawn)
0   2
1   2
2   2
3   2
4   2
5   2
6   2
7 and thereafter   0
Note 2. Currently, the contract offers only one Investment Option. In the future, we may make additional Investment Options available. There is no charge for the first 12 transfers in a Contract Year; thereafter the fee is $25 per transfer. Brighthouse is currently waiving the transfer fee, but reserves the right to charge the fee in the future.
The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including Investment Option fees and expenses.
Separate Account Annual Expenses
(as a percentage of average Account Value in the Separate Account)(Note 3) 		 
Annual Mortality and Expense Charge 0.70%
Current Preservation and Growth Rider (PGR) Fee Rate (Note 4) 1.40%
Maximum Preservation and Growth Rider (PGR) Fee Rate (Note 4) 1.80%
Maximum Total Separate Account Annual Expenses Including Maximum PGR Charge 2.50%
Note 3. Separate Account Annual Expenses are not assessed during the Annuity Period of the contract.
Note 4. The PGR Fee Rate applied to your contract during any Contract Year will be less than or equal to the Maximum PGR Fee Rate. Your initial PGR Fee Rate was equal to the current PGR Fee Rate on the date the application for the contract was signed and is stated in your contract. The Maximum PGR Fee Rate will not increase. If you elect an Optional Step Up, your PGR Fee Rate may increase to any rate less than or equal to the Maximum PGR Fee Rate. (See “Living Benefit—Preservation and Growth Rider—Optional Step Up” and “Expenses—Separate Account Annual Expenses—Preservation and Growth Rider Fee Rate.”)
The next table shows the total operating expenses charged by Investment Options which you pay periodically during the time you own the contract. There is only one Investment Option available during the Accumulation Period. An Investment Option may impose a redemption fee in the future. More detail concerning an Investment Option’s fees and expenses is contained in the prospectus for an Investment Option and in the following tables.
Total Annual Portfolio Expenses 0.74%(1)
(expenses that are deducted from Investment Option assets,
including management fees, 12b-1/service fees, and other
expenses) 		 
Note 1. The total annual portfolio expenses of the Fidelity VIP FundsManager 60% Portfolio include the fees and expenses of the underlying portfolios (Acquired Fund Fees and Expenses).
For information concerning compensation paid for the sale of the contracts, see “Other Information—Distributor.”
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Investment Option Expenses as of December 31, 2019
(as a percentage of the average daily net assets of an Investment Option)
The following table is a summary. For more complete information on Investment Option fees and expenses, please refer to the prospectus for the Investment Option. Acquired Fund Fees and Expenses are expenses incurred indirectly as a result of investing in shares of one or more underlying portfolios.
Investment Option Management
Fee 		Distribution
and/or
Service
(12b-1) Fees 		Other
Expenses 		Acquired
Fund Fees
and
Expenses 		Total
Annual
Operation
Expenses 		Fee Waiver
and/or Expense
Reimbursement 		Net Total
Annual
Operating
Expenses
Fidelity ® Variable Insurance Products — Investor Class              
Fidelity VIP FundsManager 60% Portfolio 0.25% — — 0.49% 0.74% 0.05% 0.69%
Fidelity VIP Government Money Market Portfolio 0.17% — 0.11% — 0.28% — 0.28%
Notes:
The information shown in the table above was provided by the Investment Portfolios. Certain Investment Options and their investment adviser have entered into expense reimbursement and/or fee waiver arrangements that will continue through at least April 30, 2021. These arrangements can be terminated with respect to an Investment Portfolio only with the approval of the board of directors or trustees of that Investment Option. Please see the Investment Options’ prospectuses for additional information regarding these arrangements.
The Fidelity VIP FundsManager 60% Portfolio is a “fund of funds.” A fund of funds invests substantially all of its assets in other underlying funds. Because the Investment Option invests in other funds, it will bear its pro rata portion of the operating expenses of those underlying funds, including the management fee.
3. Investment Options
At this time the contract offers only one Investment Option, the Fidelity VIP FundsManager 60% Portfolio. When the contract was still being offered to new purchasers, the Money Market Portfolio was required by applicable state law to be made available to California purchasers age 60 or older who elected to allocate their Purchase Payment to the Money Market Portfolio during the free look period. The contract is no longer offered to new purchasers, and the Money Market Portfolio is no longer available for investment under the contract. Additional Investment Options may be available in the future.
You can obtain copies of the prospectus for the Fidelity VIP FundsManager 60% Portfolio by calling us at: (866) 414-3259. You can also obtain information about the fund (including a copy of the Statement of Additional Information) by accessing the Securities and Exchange Commission’s website at http://www.sec.gov. Certain funds described in the fund prospectus may not be available with your contract.
A summary of advisers, subadvisers, and investment objectives for the Investment Options are listed below. The investment objectives and policies of an Investment Option may be similar to the investment objectives and policies of other mutual funds that certain of the portfolio investment advisers manage. Although the objectives and policies may be similar, the investment results of the Investment Option may be higher or lower than the results of such other mutual funds. The investment advisers cannot guarantee, and make no representation, that the investment results of similar funds will be comparable even though the funds may have the same investment advisers.
We do not provide any investment advice and do not recommend or endorse any particular Investment Option. You bear the risk of any decline in the Account Value of your contract resulting from the performance of an Investment Option.
Investment Portfolio   Investment Objective   Investment Adviser/Subadviser
Fidelity ® Variable Insurance Products — Investor Class        
Fidelity VIP FundsManager 60% Portfolio   Seeks high total return.   Fidelity Management & Research Company LLC
Government Money Market Portfolio   Seeks as high a level of current income as is consistent with preservation of capital and liquidity.   Fidelity Management & Research Company LLC
Money Market Portfolio. This Investment Option is no longer available for investment.
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FEDERAL INCOME TAX STATUS
The following information describes changes in federal tax law affecting the required minimum distributions (“RMDs”) that you must take from a Qualified Annuity Contract during your life and that your beneficiary must take following your death. This information should be read in conjunction with the discussion of such distributions set forth primarily in the “Federal Income Tax Status” section of the prospectus, and to a lesser extent in other sections of the prospectus.
(1) Effective January 1, 2020, the age at which RMDs generally must begin for IRAs and qualified retirement plans is extended from age 70½ to age 72. This change only applies if you attained age 70½ on or after January 1, 2020. Other requirements relating to RMD payments remain the same.
(2) Effective January 1, 2020, when an IRA owner or defined contribution plan participant dies, any remaining interest must generally be distributed within 10 years after the IRA owner/participant’s death, unless an exception applies. An exception permits an “eligible designated beneficiary” to take distributions over the beneficiary’s life or over a period not exceeding the beneficiary’s life expectancy. An eligible designated beneficiary includes: the IRA owner/participant’s spouse or minor child (until the child reaches age of majority), certain disabled or chronically ill individuals, and individuals who are not more than 10 years younger than the IRA owner/participant.
The change described in (2) above can significantly affect a beneficiary’s ability to “stretch” distributions from a Qualified Annuity Contract over his or her life or life expectancy. It may also shorten the time period over which the remaining balance of the contract must be taken if the IRA owner/participant had been receiving payments at the time of death, either in the form of annuity payments or through withdrawals of the RMD amount each year. As a result of this change, we are not currently issuing inherited IRA Contracts to beneficiaries other than surviving spouses and individuals who are not more than 10 years younger than the deceased IRA owner/participant. We may modify this in the future, so please consult your financial representative. Any annuity payment or withdrawal option made available under the contract must comply with applicable federal income tax rules.
You should consult with your tax adviser if you think you may be affected by these changes.
Other Information
Brighthouse Life Insurance Company
Brighthouse Life Insurance Company (BLIC) is a stock life insurance company originally chartered in Connecticut in 1863 and currently subject to the laws of the State of Delaware. Prior to March 6, 2017, BLIC was known as MetLife Insurance Company USA. BLIC is licensed to conduct business in all states of the United States, except New York, and in the District of Columbia, Puerto Rico, Guam, the U.S. and British Virgin Islands and the Bahamas. BLIC is an indirect wholly-owned subsidiary of, and ultimately controlled by, Brighthouse Financial, Inc. (BHF), a publicly-traded company. BHF, through its subsidiaries and affiliates, is one of the largest providers of annuity and life insurance products in the U.S. BLIC’s executive offices are located at 11225 North Community House Road, Charlotte, NC 28277.
Distributor
Distributor is a member of the Financial Industry Regulatory Authority (FINRA).FINRA provides background information about broker-dealers and their registered representatives through FINRA Broker Check. You may contact the FINRA Broker Check Hotline at 1-800-289-9999, or log on to www.finra.org. An investor brochure that includes information describing FINRA Broker Check is available through the Hotline or on-line.
Cybersecurity and Certain Business Continuity Risks
Our variable annuity contract business is largely conducted through digital communications and data storage networks and systems operated by us and our service providers or other business partners (e.g., the Investment Option and the firms involved in the distribution and sale of our variable annuity contracts). For example, many routine operations, such as processing Owners’ requests and elections and day-to-day recordkeeping, are all executed through computer networks and systems.
We have established administrative and technical controls and a business continuity plan to protect our operations against cybersecurity breaches. Despite these protocols, a cybersecurity breach could have a material, negative impact on Brighthouse and the Separate Account, as well as individual Owners and their contracts. Our operations also could be negatively affected by a cybersecurity breach at a third party, such as a governmental or regulatory authority or another participant in the financial markets.
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Cybersecurity breaches can be intentional or unintentional events, and can occur through unauthorized access to computer systems, networks or devices; infection from computer viruses or other malicious software code; or attacks that shut down, disable, slow or otherwise disrupt operations, business processes or website access or functionality. Other disruptive events, including (but not limited to) natural disasters and public health crises (such as COVID-19), may adversely affect our ability to conduct business, in particular if our employees or the employees of our service providers are unable or unwilling to perform their responsibilities as a result of any such event. Cybersecurity breaches and other disruptions to our business operations can interfere with our processing of contract transactions, including the processing of transfer orders from our website or with the Investment Options; impact our ability to calculate Accumulation Unit values; cause the release and possible destruction of confidential Owner or business information; or impede order processing or cause other operational issues.
Cybersecurity breaches may also impact the issuers of securities in which the Investment Option invests, and it is possible the Investment Option could lose value. There can be no assurance that we or our service providers or the Investment Option will avoid losses affecting your contract due to cyber-attacks or information security breaches in the future.
Although we continually make efforts to identify and reduce our exposure to cybersecurity risk, there is no guarantee that we will be able to successfully manage and mitigate this risk at all times. Furthermore, we cannot control the cybersecurity plans and systems implemented by third parties, including service providers or issuers of securities in which the Investment Option invests.
Financial Statements
The financial statements for each of the subaccounts of the Separate Account are attached. Upon request, financial statements for the Company will be sent to you without charge.
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