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MARKETVALUE INDEX ® ANNUITY Fixed index annuity designed to boost asset accumulation
Index-linked performance and downside protection help you build and protect your assets for the future.
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As you start to see your working years in the rearview mirror, you’re probably envisioning what’s down the road — maybe spending time with grandkids, taking road trips in the RV or picking up a new hobby. Now’s the time to preserve your principal while you grow the income you need to accomplish your goals. EquiTrust offers a solution to help you build your income and prepare for retirement — MarketValue Index® Annuity. HOW DOES A FIXED INDEX ANNUITY WORK? A fixed index annuity (FIA) — like MarketValue Index® — is a product designed to provide you income for retirement through interest earned on market indices. Your money is never exposed to downside market risk. In fact, you share only in the gains, not the losses. Growing your Accumulation Value It starts by choosing your index accounts and crediting strategies, providing you the ability to diversify your retirement strategy. Then, on appropriate contract anniversaries, “index credits” are determined on these accounts and applied to your contract’s current Accumulation Value. If the index value increases, your Accumulation Value grows. If the index value declines, your Accumulation Value will simply remain unchanged from the previous period’s Accumulation Value. Index credits will never be less than zero.
If index declines
Accumulation Value remains unchanged
Growth
Time
Index
Accumulation Value
2 | MARKETVALUE INDEX® ANNUITY
ADVANTAGES OF MARKETVALUE INDEX ® Your FIA contract is backed by the claims-paying ability of the insurance company, EquiTrust. FIAs offer several important advantages:
Withdrawal privileges 2
Protection of your principal
Guaranteed lifetime income with the optional Income Benefit Rider (IBR)
Tax-deferred earnings
Built-in guarantees 1
YOU CONTROL YOUR MONEY — COMING IN OR GOING OUT MarketValue Index® puts you in the driver’s seat, with flexibility and options that give you control over your money. Premiums After your initial premium payment, you may add subsequent premiums at any time. You may allocate your premiums to the fixed rate account or index accounts. Fixed rate account 1-Year Interest Account — Interest rate is guaranteed for one contract year. May change subject to contractual Minimum Guaranteed Interest Rate on each contract anniversary. Subsequent premiums are applied to this account until contract anniversary, then allocated per instructions.
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Index accounts A variety of index accounts offer earnings — called “index credits” — based on the changes of a specified index. Credits are never less than zero, and are added to accounts at the end of the one-year or two-year period. Cap and participation rates are reset annually or every two years.
Indices
S&P Marc 5% Excess Return Index
Barclay’s Focus50 Index
Account options
S&P 500 Index
1-Year Point-to-Point Cap — Percentage change from previous contract anniversary, up to specified cap. 1-Year Monthly Average Cap — Percentage change from previous contract anniversary to monthly index average, up to specified cap. 1-Year Monthly Average Participation — Percentage change from previous contract anniversary to monthly index average, multiplied by participation rate. 1-Year Monthly Cap — Cumulative sum of capped monthly changes from previous contract anniversary. Each monthly gain subject to a cap, but monthly declines not subject to a floor. 2-Year Monthly Average Cap — Percentage change from previous two-year contract anniversary to monthly index average over two- year period, up to specified cap. 1-Year Point-to-Point Participation — Percentage change from previous contract anniversary, multiplied by participation rate. 2-Year Point-to-Point Participation — Percentage change from previous two-year contract anniversary, multiplied by participation rate.
X
X
X
X
X
X
X
X
X
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About the indices
S&P 500 Index 3 Visit SPIndices.com Ticker: SPX
Widely regarded as the best single gauge of large-cap U.S. equities. More than $15.6 trillion is indexed or benchmarked to the S&P 500 Index, with indexed assets comprising approximately $7.1 trillion of this total. Includes 500 leading companies and covers approximately 80% of available market capitalization.
S&P MARC 5% Excess Return Index 3 Visit SPIndices.com Ticker: SPMARC5
Seeks to provide multi-asset diversification within a simple risk-weighting framework, tracking three underlying component indices that represent three asset classes: equities, commodities and fixed income. This index is dynamically rebalanced between the three indices and the cash component to target a 5% level of volatility. In low-volatility environments, the index risk-control mechanism increases market exposure to riskier assets by increasing the allocation to the index (up to a leveraged position of 150%).
Barclays Focus50 Index 4 Visit Indices.Barclays/Focus50 Ticker: BXIIF50E
Seeks growth opportunities while limiting volatility through exposure to a dynamic combination of U.S. stocks and U.S. Treasury Indices. Low-volatility U.S. stocks are used because, historically, they have tended to outperform other, higher volatility stocks on a risk-adjusted basis. The broad universe consists of all stocks listed on the NYSE and NASDAQ issued by companies headquartered in the U.S. The addition of Treasuries adds a diversification benefit and a potential reduction in risk. To further control risk, the index aims to limit its annual volatility to a 5% target using a process called volatility control.
Because not all accounts perform consistently through varying market cycles, diversifying your premium among a variety of strategies — and indices — can help you realize more steady overall performance from your fixed index annuity.
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IMPORTANT FEATURES THAT OFFER PEACE OF MIND Account transfers
On each contract anniversary, you may transfer money among the various accounts offered in your contract. Transfers out of a two-year account are allowed only at the end of each two-year period. Allocation of additional premiums At any time, you can request a change to your premium allocations. These updates take effect on the following contract anniversary, and apply only to any additional contributions during the current contract year. Free withdrawals You may withdraw up to 10% of the accumulation value each year after the first contract year, without paying any charges. 2 Lump-sum payment option Your contract’s cash surrender value is available as a lump sum at any time. Surrender charges are in effect during the first 10 contract years, are a percentage of the Accumulation Value, and decline annually: 12, 12, 12, 12, 11, 10, 8, 6, 4 and 2%. 5 In addition, early surrenders or withdrawals over 10% may be subject to a Market Value Adjustment 6 (MVA). At the end of the surrender charge period, your cash surrender value will equal the full Accumulation Value. The value of tax deferral Currently, all interest income earned on an annuity accumulates on a tax-deferred basis. You won’t need to pay income taxes on your annuity until you receive a payment from your contract. If you’re under age 59 ½ at the time of withdrawal, there may be an additional 10% IRS penalty. 7
6 | MARKETPOWER BONUS INDEX® ANNUITY
At EquiTrust, we’re committed to being a financial partner you can trust with your retirement dreams. Rest assured your annuity contract is backed by a company with conservative investment strategies, anchored by a disciplined and diversified management style. EquiTrust is supported by a history of success, experience and strength. Magic Johnson Enterprises — a diversified consortium of business entities and partnerships — owns a controlling interest in EquiTrust. EquiTrust is a name you can trust
Minimum Guaranteed Contract Rate You’re guaranteed to receive no less than 87.5% of your premiums — less any partial withdrawals — accumulated at the Minimum Guaranteed Contract Rate (MGCR). Ask your agent/producer for this rate. Nursing Home Waiver The Nursing Home Waiver, included at no charge on your contract, can help provide you peace of mind. If you’re confined to a nursing home or hospital for 90 days or more, your contract’s Accumulation Value will be available without surrender charges or MVA 6 beginning in the second contract year and during your confinement. Terminal Illness Rider This no-charge rider can provide assurance that if you’re diagnosed with a terminal illness, charges will be waived for a withdrawal of up to 75% of your contract’s Accumulation Value. 8 Death benefit If you die, the full Accumulation Value of your contract will be paid to your beneficiary(ies), without surrender charges or MVA. 6 Free-look period After your contract is issued, you have a specified number of days to review it; see your contract for complete details. If you’re not completely satisfied with the terms, you may return the contract and receive 100% of your premiums paid, minus any prior withdrawals.
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GUARANTEED LIFETIME INCOME — THE INCOME BENEFIT RIDER You can add the optional Income Benefit Rider (IBR) to your MarketValue Index® contract to take advantage of these benefits:
L ifetime income based on 3% accumulation plus index and interest credits for up to 10 years
A 10% bonus added to your Benefit Base for premiums paid in the first year
A guaranteed 1 stream of income for life — without annuitizing 9
T he ability to double your income for up to five years in the event of a chronic illness
Flexibility and control to start and stop income payments when it works for you
All of this while maintaining your annuity benefits
At any time after the first contract year and age 50, you can elect to begin lifetime income withdrawals. Your payments will never decrease if you withdraw only your income amount each year. In certain situations, your payments may increase. How do I qualify for the IBR? The owner of the annuity must be age 40 or older to elect the IBR, and it can be added only during the annuity application process. To qualify, the owner and annuitant must be the same person, and joint owners must be spouses; spouse may include domestic partner (in some cases, but does not include spousal continuation). Calculating income withdrawal amounts Your payments will be calculated based on this equation:
Income withdrawal percentage
Income withdrawal amount
Benefit Base
On your contract anniversary, your income withdrawal amount will be recalculated as the greater of the prior year’s income withdrawal amount or the original income withdrawal percentage multiplied by the current Benefit Base.
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Determining your income withdrawal percentage The withdrawal percentage is based on your age at the time you first elect to receive income withdrawals. Withdrawal percentages increase 0.10% for each age between the ages shown below. For example, if the owner is age 65 at the time of first income withdrawal, their withdrawal percentage on a single life would be 4.75%. Once you start income withdrawals, the withdrawal percentage will never change.
Let’s see how that works for single life and joint life income withdrawals:
Age of owner at first income withdrawal
Single life income withdrawal percentage
Joint life income withdrawal percentage
50
3.25%
2.25%
60
4.25%
3.25%
70
5.25%
4.25%
80
6.25%
5.25%
90+
7.25%
6.25%
Benefit Base Your annuity’s Benefit Base is equal to all premiums plus a 10% first-year Benefit-Base bonus on premium paid, less withdrawals, compounded at 3% plus the weighted average of index and interest credits. It grows for up to 10 years, or the start of your income withdrawals, if earlier. 2 We use the Benefit Base only to calculate the income withdrawal amount — it’s not available at surrender, death or annuitization. After you start income withdrawals, the Benefit Base will be set equal to the Accumulation Value on each subsequent contract anniversary, if the Accumulation Value is higher. This means income withdrawal amounts can potentially increase from year to year. Additional premiums The Benefit Base will increase with any additional premiums, and will reflect a 10% bonus for all first-year premiums paid. You may not add premiums after you begin income withdrawals. Flexible income withdrawals You can start income withdrawals at any time after the first contract year and age 50 (both owners). Unlike annuitizing your contract, the IBR gives you the flexibility to stop and restart income withdrawals when you choose. Payments continue for life, even if your contract’s Accumulation Value is depleted. Income withdrawals may be taken monthly, quarterly, semi-annually or annually. After they start, the annual penalty-free withdrawal amount is the greater of 10% of the Accumulation Value or your income withdrawal.
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Excess withdrawals It’s possible to withdraw more than your income withdrawal amount at any time, but it will reduce your future income withdrawals permanently. • Any amount withdrawn in addition to your income withdrawal is considered an excess withdrawal, with the exception of a Required Minimum Distribution (RMD). • If the excess withdrawal amount exceeds the penalty-free provisions of the contract, it may be subject to a surrender charge or MVA. 6 • Excess withdrawals reduce future income withdrawals and the Benefit Base in proportion to the reduction in Accumulation Value. If you stop income withdrawals You have the option to stop income withdrawals at any time. While the payments are stopped, partial withdrawals in excess of the income withdrawal amount will be considered excess withdrawals and reduce your future income withdrawal amount. If you decide to restart income withdrawals, the income withdrawal amount will be the greater of the prior income withdrawal amount (adjusted for any excess withdrawals) or the original income withdrawal percentage multiplied by the current Benefit Base. IBR fee The IBR has an annual rider fee of 0.95% of your Accumulation Value on each contract anniversary. This fee is deducted proportionately from each crediting account. Enhanced Income Withdrawals during chronic illness It’s no secret the cost of nursing care later in life could have a big impact on your retirement savings. To help you prepare for these potential expenses, the IBR features Enhanced Income Withdrawals — included at no additional cost. If you become chronically ill, your income withdrawal amounts may be doubled for up to five years; for joint owners the increase is 50%. A chronic illness is defined as the permanent inability to perform at least two of six activities of daily living, which include eating, toileting, transferring, bathing, dressing and continence, or permanent cognitive impairment. If utilized, the original income payment amount resumes when Enhanced Income Withdrawals end. Enhanced Income Withdrawals may be put into action after your contract has been in effect for three years, if the contract has an Accumulation Value greater than zero, no additional premiums have been added in the last two years and the owner is a U.S. resident not older than age 90. During the Enhanced Income Withdrawal period, the chronic illness must be certified by a physician annually.
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Terminating the IBR The IBR can be terminated upon your request, but once terminated, it cannot be restarted. It automatically terminates in the event of:
Death of first contract owner, unless spousal continuation is elected
Full surrender
Annuitization 9
C ontract ownership change other than a spousal continuation or the addition of a spousal joint owner
Excess withdrawals that reduce the Accumulation Value to zero
Want to learn more about MarketValue Index ® ? This brochure includes only a summary of the product. Availability and certain features and benefits may vary by state. Ask your agent/producer for complete contract provisions and details before purchasing.
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1 The guarantees expressed in this brochure are based on the claims-paying ability of EquiTrust Life Insurance Company.
2 Surrender of the contract may be subject to surrender charges or Market Value Adjustment. Withdrawals before age 59½ may result in a 10% IRS penalty tax. Withdrawals do not participate in index growth. In the event of a full surrender, charges will apply to any penalty-free amounts taken during the same contract year. If the Income Benefit Rider is elected, any withdrawals prior to the start of income withdrawals will reduce the Benefit Base proportionately. 3 The “S&P Multi-Asset Risk Control 5% Excess Return Index” and “S&P 500®” Indices (“Indices”) are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by EquiTrust Life Insurance Company (“the Company”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by the Company. The products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions or interruptions of the Indices. 4 Neither Barclays Bank PLC, or Barclays Capital Inc., nor any affiliate (collectively “Barclays”) is the issuer or producer of MarketValue Index – an index annuity contract – (“the contract”) and Barclays has no responsibilities, obligations or duties to investors in the contract. The Barclays Focus50 Index (“the Index”), including as applicable any component indices that form part of the Index is a trademark owned by Barclays Bank PLC, or Barclays Capital Inc., and licensed for use by EquiTrust Life Insurance Company (“EquiTrust”) as the Issuer of the contract. While EquiTrust as the issuer of the contract may for itself execute transaction(s) with Barclays in or relating to the Index in connection with the contract investors acquire the contract from EquiTrust and investors neither acquire any interest in the Index nor enter into any relationship of any kind whatsoever with Barclays upon making an investment in the contract. The contract is not sponsored, endorsed, sold or promoted by Barclays, and Barclays makes no representation regarding the advisability of the contract or use of the Index or any data included therein. Barclays shall not be liable in any way to the Issuer, investors or to other third parties in respect of the use or accuracy of the Index or any data included therein. Bloomberg Index Services Limited is the official index calculation and maintenance agent of the Index, an index owned and administered by Barclays. Bloomberg Index Services Limited does not guarantee the timeliness, accuracy or completeness of the Index calculations or any data or information relating to the Index. Bloomberg Index Services Limited makes no warranty, express or implied, as to the Index or any data or values relating thereto or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose with respect thereto. To the maximum extent allowed by law, Bloomberg Index Services Limited, its affiliates, and all of their respective partners, employees, subcontractors, agents, suppliers and vendors (collectively, the “protected parties”) shall have no liability or responsibility, contingent or otherwise, for any injury or damages, whether caused by the negligence of a protected party or otherwise, arising in connection with the calculation of the Index or any data or values included therein or in connection therewith and shall not be liable for any lost profits, losses, punitive, incidental or consequential damages.
5 The surrender charge period and surrender charges may vary by state. AK, CT, DE, ID, MN, MT, NJ, NV, OH, OK, OR, PA, TX, UT, VT, WA — 10 years: 9, 8, 7, 6.5, 5.5, 4.5, 3.5, 2.5, 1.5 and 0.5%; CA — 9 years: 8.3, 7.4, 6.5, 5.6, 4.7, 3.8, 2.9, 1.9 and 0.9%; FL — 10 years: 10, 10, 10, 10, 10, 10, 8, 6, 4 and 2%.
6 Market Value Adjustment does not apply in CA and DE.
7 EquiTrust Life Insurance Company cannot give legal, tax or accounting advice. Your personal tax advisor can provide important information with respect to the purchase of this annuity contract and its taxation.
8 Terminal Illness Rider features may vary by state.
9 Annuitization prior to the Income Date is not offered in TX.
Contract issued on Form Series ICC12-ET-EIA-2000(01-12) or ET-EIA-2000(06-04). Riders issued on Form Series ICC15-ET-IBR-STR(04-15) or ET-IBR-STR(04-15); ICC17-ET-IBR-ER-A(04-17) or ET-IBR-ER-A(04-17); ICC18-430-NHW(06-18) or 430-NHW(08- 03); ICC16-ET-TI(10-16) or ET-TI(10-16). Index accounts issued on Form Series ICC18-ET-P2P(05-18), ICC18-ET-1PP(05-18), ICC18-ET-MAVG(05-18), ICC18-ET-1AP(05-18), ICC18-ET-1MC(05-18), ICC18-ET-2YR(05-18), ICC18-ET-1PPGS(05-18), ICC18-ET-2PPGS(05-18), ICC19-ET-1PP(05-19), ICC19-ET-2PP(05-19), ET-1PPGS(10-16), ET-2PPGS(10-16), ET-1PP(05-19), ET-2PP(05-19), ET-P2P(05-18), ET-1PP(05-18), ET-MAVG(05-18), ET-1AP(05-18), ET-1MC(05-18) and ET-2YR(05-18). This brochure briefly highlights EquiTrust Life Insurance Company’s MarketValue Index® annuity contract and its benefits. For costs and complete details of coverage, including any exclusions, reductions or limitations, and the terms under which the contract may be continued in force, contact your agent/producer. This material is not intended to provide investment advice to you or to your specific situation. EquiTrust does not offer investment advice to any individual and this material should not be construed as investment advice. IRAs/qualified plans are already tax deferred; consider other annuity features.
ANNUITY AND INSURANCE PRODUCTS ARE NOT DEPOSITS NOR ARE THEY GUARANTEED BY ANY BANK. THEY ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER AGENCY OF THE FEDERAL GOVERNMENT. CERTAIN PRODUCTS MAY LOSE VALUE
7100 Westown Pkwy Suite 200 West Des Moines, IA 50266-2521 877-249-3694 • www.EquiTrust.com
ET-MV-BR-1100 (03-23)
© EquiTrust 2023. All Rights Reserved.
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