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MARKETFIVE INDEX™ ANNUITY Fixed index annuity that can help you reach your accumulation goals when retirement is on the horizon
Prepare for your financial future by taking advantage of downside protection and growth potential.
HOW DOES A FIXED INDEX ANNUITY WORK? A fixed index annuity (FIA) — like MarketFive 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 contract anniversaries, “index credits” are calculated based on the movement of the index or indices you chose 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. You’ve worked hard for retirement, and now it’s right around the corner. As it gets closer, you’re likely thinking more about your vision for the future. But whether you’re hoping to spend more time with family, travel the world or simply relax, protecting your finances is key. At EquiTrust, we’re committed to helping you work toward your goals. That’s why we created MarketFive™, a five-year fixed index annuity designed to help get you to the retirement finish line.
If index declines
Growth
Accumulation Value remains unchanged
Time
Index
Accumulation Value
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ADVANTAGES OF MARKETFIVE INDEX TM Your FIA contract is backed by the claims-paying ability of the insurance company, EquiTrust. FIAs offer several important advantages:
Protection of your principal
Built-in guarantees 1
Tax-deferred earnings
Withdrawal privileges 2
YOU CONTROL YOUR MONEY — COMING IN OR GOING OUT MarketFive 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, and 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 period. Cap and participation rates are reset annually.
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.
X
1-Year Monthly Average Cap — Percentage change from previous contract anniversary to monthly index average, up to specified cap.
X
1-Year Monthly Average Participation — Percentage change from previous contract anniversary to monthly index average, multiplied by participation rate.
X
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.
X
1-Year Point-to-Point Participation — Percentage change from previous contract anniversary, multiplied by participation rate.
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 — may help you realize more steady overall performance from your fixed index annuity.
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EquiTrust is a name you can trust
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.
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. 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 five contract years, are a percentage of the Accumulation Value, and decline annually: 9, 8, 7, 6.5 and 5.5%. 5 In addition, early surrenders or withdrawals over 10% may be subject to a Market Value Adjustment (MVA). 6 At the end of the surrender charge period, your cash surrender value will equal the full Accumulation Value. The value of tax deferral 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
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Guaranteed Accumulation Value benefit At the end of year five, your Accumulation Value is guaranteed to be no less than 105% of your premiums less any partial withdrawals. 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 consecutive 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. This rider is available at issue through age 80. 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.
Want to learn more about MarketFive 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. 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 MarketFive 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. CA — 5 years: 8.3, 7.4, 6.5, 5.6 and 4.7%
6 Market Value Adjustment does not apply in CA.
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.
Contract issued on Form Series ET-FIA5-2000(10-16) or ICC16-ET-FIA5-2000(10-16). NHW on 430-NHW(08-03) or ICC18-430-NHW(06-18). Terminal Illness on ET-TI(10-16) or ICC16-ET-TI(10-16). AV Guarantee Rider on ET-AVGR(10-16) or ICC16-ET-AVGR(10-16). Index accounts issued on Form Series ICC18-ET-1AP(05-18), ICC18-ET-1MC(05-18), ICC18-ET-1PP(05-18), ICC18-ET-MAVG(05-18), ICC18-ET-P2P(05-18), ET-1AP(05-18), ET-1MC(05-18), ET-1PP(05-18), ET-MAVG(05-18) and ET-P2P(05-18). This brochure briefly highlights EquiTrust Life Insurance Company’s MarketFive 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.
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ET-MK5-BR-1100 (08-23)
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