Is the EquiTrust Market Power Bonus Index Annuity Any Good?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

The EquiTrust Market Power Bonus Index annuity is a fixed-indexed annuity that is a valuable tool for individuals focused on retirement planning and achieving long-term financial security. It is designed to balance potential market gains and protection against market downturns, making it suitable for investors seeking safety and stability in their retirement strategy.

One of the notable features of the EquiTrust Market Power Bonus Index annuity is the 10% bonus it provides on first-year premiums. This bonus adds value to the annuity from the beginning, potentially boosting initial contributions. Additionally, the annuity offers tax-deferred growth, allowing investors to maximize their savings by compounding their earnings over time.

With a 14-year term, the EquiTrust Market Power Bonus Index annuity provides a long-term investment option for individuals aiming to secure their financial future. However, surrender charges may apply if excess withdrawals are made before the term ends. Therefore, investors should carefully consider their investment horizon, liquidity needs, and risk tolerance before purchasing.

Key Takeaways:

  • The EquiTrust Market Power Bonus Index annuity prioritizes safety and security in retirement planning.
  • Investors can participate in market index gains while protecting against downside risk.
  • The annuity offers a 10% bonus on first-year premiums and tax-deferred growth.
  • Various index options, such as the Barclays Focus50 Participation Index and the S&P 500, are available.
  • Investors should carefully consider their investment horizon, liquidity needs, and risk tolerance before purchasing.
Equitrust Market Power Bonus Index

Benefits of the EquiTrust Market Power Bonus Index Annuity

The EquiTrust Market Power Bonus Index annuity offers several benefits for retirement planning and financial security. This annuity provides a guaranteed retirement income through annuitization or an income rider, ensuring you have a steady and reliable source of income throughout your retirement. With the EquiTrust Market Power Bonus Index annuity, you can enjoy peace of mind knowing that your financial future is secured.

One major advantage of this annuity is the tax-deferred growth it offers. This means that you won’t have to pay taxes on the earnings and interest your annuity accumulates until you start making withdrawals. This allows your money to grow faster, compounding over time and giving you the potential for higher returns.

Another benefit of the EquiTrust Market Power Bonus Index annuity is its flexibility. You can make flexible contributions, adding money to your annuity over time. This allows you to adapt to changing financial circumstances and increase your savings to meet your retirement goals.

The EquiTrust Market Power Bonus Index annuity also offers creditor protection in many states. Your annuity funds are safeguarded from potential creditors, providing additional financial security.

Furthermore, this annuity can help you avoid probate, the legal process that validates a will and distributes assets. Probate can be complex and time-consuming, often leading to costly legal fees. By using the EquiTrust Market Power Bonus Index annuity as part of your estate planning, you can transfer your wealth directly to your beneficiaries, bypassing probate.

However, it’s important to note that the EquiTrust Market Power Bonus Index annuity does come with surrender charges and a market value adjustment that may apply to early withdrawals. These charges and adjustments could impact the value of your annuity if you need to access your funds before the annuity’s term ends. Therefore, it’s crucial to carefully consider your financial needs and investment timeline before committing to this annuity.

In conclusion, the EquiTrust Market Power Bonus Index annuity offers a range of benefits including guaranteed retirement income, tax-deferred growth, flexibility in contributions, creditor protection, and the ability to avoid probate. However, as with any financial product, it’s essential to thoroughly research and understand the terms and conditions and compare the annuity with other options before making a decision that aligns with your long-term financial goals and retirement planning.

How Does the EquiTrust Market Power Bonus Index Annuity Compare to Other Index Annuities?

When comparing the EquiTrust Market Power Bonus Index annuity to other index annuities on the market, various factors must be considered. One of these factors is the contract terms. The EquiTrust annuity has a 14-year term, providing investors with a long-term opportunity for growth and stability.

Another factor to consider is surrender charges. The EquiTrust annuity has surrender charges that decline annually, allowing investors more flexibility if they need to access their funds earlier than expected.

Moreover, the EquiTrust annuity offers a variety of index options that investors can choose from. For example, the 1-Year Point-to-Point Cap Index Account and the 1-Year Average Cap Index Account are available options. These options allow investors to align their annuity with their specific financial goals and risk tolerance.

Potential buyers should request an index annuity proposal to compare the EquiTrust annuity with other products and make an informed decision. Additionally, seeking independent advice is essential. Thorough research and understanding the features, benefits, and potential risks are crucial when considering any index annuity.

Equitrust Market Power Bonus Index Annuity Reviews

What We Like

  • Attractive Premium Bonus: The Equitrust MarketPower Bonus Index stands out for its substantial premium bonus. This feature is particularly beneficial as it helps to either counterbalance potential losses or provides an early boost to growth.
  • Utilization of the S&P 500 Index: Using the S&P 500 index for various index strategies is a notable advantage. It offers a reliable and well-recognized benchmark for performance tracking.

What We Don’t Like

  • Complexity of Additional Indexes: While the S&P 500 index is a clear positive, the other available indexes are somewhat limited and can be complex and challenging to comprehend.
  • Income Rider Not as Competitive: The income rider option presented by Equitrust MarketPower Bonus Index is seen as average and lacks a competitive edge.
  • Credit Ratings Concerns: The credit ratings of A.M. Best (B++), Fitch (A-), and Standard & Poor’s (BBB+) raise concerns. These ratings, particularly in the context of insurance and financial stability, may not instill the highest level of confidence.

Our Recommendations

  • Potential Buyers Should Weigh the Premium Bonus: Customers considering this product should carefully consider the value of the large premium bonus against their individual financial goals and needs.
  • Educate Yourself on Index Options: Due to the complexity of the additional indexes, we recommend that potential buyers seek thorough understanding or professional advice regarding these options.
  • Evaluate the Income Rider Carefully: As the income rider is relatively average, customers should assess its suitability for their long-term income needs.
  • Consider the Credit Ratings: The credit ratings should be a factor in your decision-making process, as they reflect the company’s financial strength and stability.
Equitrust Fia Annuity

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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