Our Professional Opinion on the EquiTrust MarketEarly Income Index Annuity
MarketEarly Income Index is worth quoting for deferred lifetime income, but only under a strict payout test. Its design front-loads the Benefit Base with a 20% bonus, applies a stronger roll-up during the first five years, and then uses a lower roll-up through year ten. That can produce competitive income for an early or moderate start date.
EquiTrust is a financially established annuity company, but its B++ AM Best rating is below our preferred A- minimum. Other rating agencies may view the company differently, but our long-term annuity standard is based on AM Best. That does not make every EquiTrust contract unsuitable; it means the product must provide a meaningful advantage over an A- or better-rated insurer before we accept the lower rating.
This product belongs in a quote comparison, but it does not receive an automatic recommendation. Because EquiTrust is rated B++ by AM Best, the guaranteed lifetime income must be meaningfully higher than what an A- or better-rated insurer will pay for the same premium, age, state, income date, and single- or joint-life structure.
The comparison must use actual annual dollars, not only percentages or benefit-base values.
We like that the annual rider fee is based on Accumulation Value rather than the Benefit Base. We do not like that the owner still accepts a ten-year surrender period and a B++ insurer. The current age-65 payout factors may be competitive, but the actual quote must win by a meaningful amount.
The Benefit Base is not cash. It is an accounting value used to calculate the lifetime withdrawal. The Accumulation Value is the money available for surrender, withdrawals, and beneficiaries. Confusing those values is the fastest way to overestimate what the annuity provides.
Bottom line: We would consider this contract only when the guaranteed paycheck is materially higher than a comparable A- or better-rated option, and the buyer can tolerate the ten-year surrender period.
What We Like
- Contractual lifetime income: Permitted withdrawals can continue after the Accumulation Value reaches zero.
- Single- and joint-life choices: Income can cover one life or two lives.
- Benefit-base growth: The rider provides stated growth before income begins.
- Fee based on Accumulation Value: The rider cost is not calculated from the larger Benefit Base.
- True S&P 500 strategies: Familiar index options are available.
- Chronic illness enhancement: A qualifying owner can temporarily receive a larger payment.
- Annual liquidity: A free-withdrawal allowance is generally available after year one.
- Health waivers: Nursing-home and terminal-illness provisions can provide additional access.
What We Don’t Like
- B++ AM Best rating: The income must be materially higher to justify accepting the lower rating.
- Benefit Base is not cash: It cannot be surrendered or paid directly as the death benefit.
- Ten-year surrender period: Excess access can be expensive and can damage the guarantee.
- 1.25% annual rider fee: The fee reduces the Accumulation Value every year.
- Renewal-rate risk: Future index terms remain under insurer control.
- Chronic illness enhancement is temporary: It is not a lifetime long-term care benefit.
- Excess withdrawals can terminate income: The guarantee requires disciplined use.
- New-business terms change: Payout factors, bonuses, and roll-ups must be confirmed before purchase.
What Is the EquiTrust MarketEarly Income Index Annuity?
MarketEarly Income Index is a flexible-premium fixed indexed annuity with an automatically included guaranteed lifetime withdrawal benefit. The contract combines an Accumulation Value with a separate Benefit Base that determines lifetime income.
The owner receives income through a guaranteed lifetime withdrawal benefit rather than being required to permanently annuitize the contract. That generally preserves more access and beneficiary value while the Accumulation Value remains above zero.
MarketEarly Income Index Product Details
| Feature | Current Product Design |
|---|---|
| Product type | Flexible-premium fixed indexed annuity with an income benefit rider |
| Issue ages | Generally 45–80 |
| Minimum premium | $10,000 |
| Additional premium | Generally $2,000 minimum; annual limits apply |
| Benefit Base bonus | 20% on eligible first-year premium |
| Benefit Base growth | 7% compound for years 1–5, then 4% compound for years 6–10, until income begins |
| Income start | After the first contract year and generally age 50 or older |
| Rider fee | 1.25% of Accumulation Value annually |
| Surrender period | Ten years |
| Chronic illness benefit | 2x single-life or 1.5x joint-life income for a limited period when qualified |
| Death benefit | Generally remaining Accumulation Value |
How the Benefit Base Grows
The rider adds a 20% Benefit Base bonus to eligible first-year premium. It then compounds the Benefit Base at 7% annually for years one through five and 4% annually for years six through ten, stopping earlier when income begins. These are roll-up rates, not returns credited to the cash account.
The front-loaded structure can work well for an early or moderate income start, but the illustration should show both the Benefit Base and the Accumulation Value. Withdrawals before activation can proportionally reduce the Benefit Base.
How Lifetime Income Is Calculated
The annual payment equals the Benefit Base multiplied by an age-based withdrawal factor. Under the current schedule, the single-life factor is 4.90% at age 50, 5.90% at age 60, 6.90% at age 70, and 7.90% at age 80. The joint-life factor is generally one percentage point lower.
At age 65, the current schedule is 6.40% for single life and 5.40% for joint life. These are new-business factors and can change before purchase. Compare actual annual dollars using the same premium and start date.
Single-Life and Joint-Life Income
The withdrawal percentage is higher for single-life income because payments cover one person. Joint-life income uses a lower factor because the guarantee may continue over two lifetimes. Compare the contract with a true joint-and-survivor income election when both spouses rely on the money.
Confirm the ownership, annuitant, beneficiary, and spousal continuation provisions before purchase. Choosing a larger single-life payment can leave a surviving spouse without the intended guarantee.
Chronic Illness Income Enhancement
The rider can temporarily increase income when the covered person cannot perform at least two of six activities of daily living or has a qualifying severe cognitive impairment. The standard design can double single-life income and increase joint-life income by 50%, subject to eligibility rules and a maximum benefit period.
This is not the same as dedicated long-term care coverage. The enhancement requires annual certification, can have a waiting period, and is limited to the annuity’s rider terms. It should supplement—not replace—a full care plan.
Index Crediting and Renewal Risk
The Accumulation Value can earn fixed or index-linked interest through strategies tied to the S&P 500 and proprietary indexes. The index choices can use caps, participation rates, and performance triggers.
Current terms can change at renewal. That renewal-rate risk matters because weaker future crediting can reduce account-value durability, liquidity, and the money left to family even when lifetime income remains guaranteed.
Rider Fee and Account-Value Impact
The annual 1.25% rider charge is calculated from Accumulation Value. It is one of the contract’s real annuity fees and is deducted whether or not an index strategy earns interest.
A fee based on Accumulation Value is easier to contain than a charge based on a rapidly growing Benefit Base, but it still reduces liquidity and the potential death benefit. Compare projected account value under conservative crediting assumptions.
Penalty-Free Withdrawals, Surrender Charges, and MVA
After the first year, a limited amount is generally available through penalty-free withdrawals. Amounts above the allowance can face the following standard schedule:
| Schedule | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Contract year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Surrender charge | 9% | 8% | 7% | 6.5% | 5.5% | 4.5% | 3.5% | 2.5% | 1.5% | 0.5% |
A chargeable withdrawal can also receive a Market Value Adjustment. More important, an excess withdrawal can proportionally reduce the Benefit Base and future paycheck in addition to normal surrender charges.
Death Benefit and Tax Treatment
Beneficiaries generally receive the remaining Accumulation Value, not the Benefit Base. Review the contract’s annuity inheritance rules and keep beneficiary designations current.
Nonqualified earnings grow tax-deferred and are generally taxed as ordinary income under annuity tax rules. An IRA already provides tax deferral, so qualified money should be placed here only when the income guarantee and spouse provisions fit the plan. Coordinate required minimum distributions with rider withdrawals.
EquiTrust Financial Strength and the B++ Issue
An annuity guarantee is only as strong as the issuing insurance company. Because EquiTrust is rated B++ by AM Best, we apply a higher burden of proof than we would to an A- or better-rated carrier. This is an income product, so the correct justification is a materially larger guaranteed lifetime paycheck. Minor differences in payout do not compensate for the lower AM Best rating.
For a large purchase, consider insurer diversification and the limits of your state guaranty association. State guaranty protection is a backstop, not a substitute for choosing financially strong insurance companies.
Who Should Consider MarketEarly Income Index?
- A retiree whose guaranteed annual payout is meaningfully higher than an A- or better-rated alternative.
- Someone who wants lifetime income without immediately annuitizing the account.
- A married couple willing to use joint-life coverage when both spouses depend on the income.
- A buyer with enough liquid assets outside the annuity to avoid excess withdrawals.
- Someone who understands that the Benefit Base is not cash.
Who Should Avoid It?
- A buyer whose payout advantage over an A- or better-rated insurer is small.
- Someone who needs unrestricted access during the ten-year surrender period.
- A consumer buying mainly because the Benefit Base looks large.
- Someone relying on the chronic illness feature as the entire long-term care plan.
- A buyer seeking maximum account-value accumulation rather than guaranteed income.
Other Insurance Coverage to Consider
- Long-term care insurance: Creates a dedicated care benefit that does not depend on the annuity account remaining above zero.
- Life insurance: Can replace money expected to be spent through lifetime withdrawals.
- Medicare Supplement coverage: Helps control healthcare expenses separately from the retirement-income decision.
Alternatives to Compare
Athene Ascent Pro 10 Bonus should be compared for guaranteed roll-up income from an A- or better-rated insurer.
North American Income Pay Pro can provide another guaranteed-income comparison with different payout and liquidity mechanics.
Current market leaders: Review the best fixed indexed annuities using the same age, premium, state, and joint-life election.
Our Final Recommendation
We recommend comparing MarketEarly Income Index, but we would buy it only when the guaranteed annual income is meaningfully higher than an A- or better-rated contract. We will not recommend the contract merely because its bonus, roll-up, or payout factor looks attractive. The guaranteed annual income and total lifetime value must provide a clear reason to accept EquiTrust’s B++ AM Best rating.
Contact The Annuity Expert for free quotes and a no-obligation comparison of MarketEarly Income Index with annuities from A- or better-rated insurers. We will compare the guarantee, income or accumulation value, fees, surrender period, liquidity, death benefit, company strength, and any care benefits before you buy coverage.
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Frequently Asked Questions
Is MarketEarly Income Index a good annuity?
It can be worth considering when its guaranteed payout is meaningfully higher than an A- or better-rated alternative. A small payout advantage is not enough.
Is the 20% Benefit Base bonus cash?
No. It increases the value used to calculate lifetime income and is not available for surrender or as the death benefit.
What is the current payout at age 65?
The current schedule shows 6.40% for single life and 5.40% for joint life, multiplied by the Benefit Base. New-business factors can change.
Can income continue after the account reaches zero?
Yes, when the account is depleted through permitted lifetime withdrawals and rider rules are followed. Excess withdrawals can reduce or terminate the guarantee.
Is the chronic illness doubler long-term care insurance?
No. It is a temporary income enhancement subject to qualification rules and a maximum benefit period.
Why does the B++ rating matter?
The insurer may be responsible for payments for decades. We require a materially larger guaranteed paycheck before accepting an AM Best rating below A-.