Market Ten Bonus Index Annuity from EquiTrust Life Insurance Company gives you the benefits when markets are rising and protection when they’re fluctuating.
Plus, there are tax advantages to owning a fixed annuity.
And the bonus isn’t just in the name.
EquiTrust will immediately credit your contract an extra 6% on any premiums paid during the first five contract years.
Market Ten Bonus Index enables you to:
- Lock in S&P 500 gains
- Avoid market losses – guaranteed.
When the Market is Up…You’re Up! When it’s Down …You’re Not!
Market Ten Bonus Index annuity never exposes your principal to market risk.
You share only in index gains…not the losses.
And you benefit from tax-deferred earnings, withdrawal privileges, built-in guarantees, and a 6% premium bonus for five years – all without investing directly in the stock market.
You may choose among several accounts.
The 1-Year Interest Account earns a traditional interest rate and a variety of Index Accounts that earn credits based on changes in the S&P 500.
On appropriate contract anniversaries, index credits are determined on Index Accounts and applied to your contract’s current Accumulation Value.
If the Index continues steady growth, your Accumulation Value grows.
If the index declines, your Accumulation Value is simply unchanged from the preceding period’s Accumulation Value.
At the end of the surrender charge period, you have access to your contract’s full Accumulation Value with no surrender charges.
You are guaranteed an Accumulation Value no less than 100% of your premiums accumulated at the Minimum Guaranteed Contract Rate at the end of ten years.
However, by leaving your money in Market Ten Bonus Index beyond the surrender charge period, you continue to earn interest and index credits on a tax-deferred basis.
You Control Your Money… Going In and Coming Out
After making your initial premium payment, you may add subsequent premiums at any time.
Your entire premium amount and 6% premium bonus (on premiums added during the first five years) are credited to the Accumulation Value.
Additional premium payments are directed to the 1-Year Interest Account until the next contract anniversary, at which time they can be reallocated.
If you would like all initial premiums to be allocated to the index accounts, you may authorize the Company to wait to issue the contract until all specified premiums are received.
You may allocate your premiums among the following crediting accounts.
The 6% premium bonus is added immediately to all premium payments made during the first five years and is a permanent part of your Accumulation Value.
You then earn interest and index credits on your premium and a 6% bonus.
If you surrender your contract, a surrender charge and MVA5 may be applied to the full Accumulation Value, but you don’t lose your bonus.
In the event of your death, 100% of your premium bonus is included in the death benefit.
THE VALUE OF TAX DEFERRAL
Currently, all interest income earned on an annuity accumulates on a tax-deferred basis.
No income taxes are payable until you receive a payment from your contract.
If you are under age 59 ½ at the time of withdrawal, an additional 10% IRS penalty may be imposed.
MINIMUM GUARANTEED CONTRACT VALUE
You are guaranteed to receive no less than 100% of your premiums – less any partial withdrawals – accumulated at the minimum guaranteed contract rate, less surrender charges.
RETURN OF PREMIUM RIDER
As an additional guarantee, if the contract is surrendered, you will receive your premiums – less any partial withdrawals.
The Return of Premium Rider is included at no additional charge.
NURSING HOME WAIVER
For additional peace of mind, your contract includes a Nursing Home Waiver.
If you are confined to a nursing home or hospital for 90 days or more, your contract Accumulation Value will be available without surrender charges or MVA beginning in the second contract year and during your confinement.
There is no charge for this waiver.
TERMINAL ILLNESS RIDER
If you are diagnosed with a terminal illness, charges will be waived for a withdrawal of up to 75% of the Accumulation Value.
There is no charge for this rider.
BENEFITS UPON DEATH OF OWNER
If you die, the full accumulation value is paid to the beneficiary, without surrender charges or MVA. Equitrust Life Insurance is also an inexpensive way to leave a death benefit to beneficiaries.
After your contract is issued, you have a specified number of days to review it; see your contract for complete details.
If you are not completely satisfied with the terms, you may return the contract and receive 100% of your premiums paid, minus any prior withdrawals.
This optional benefit offers:
- Lifetime income based on 6.5% accumulation for up to 10 years.
- A guaranteed income stream for life – without annuitizing.
- The 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 you choose.
- All of this while maintaining your annuity benefits!
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.
Under certain situations, your payments may increase.
INCOME WITHDRAWAL RULES
Income Withdrawals may begin anytime after the first contract year and age 50 (both owners).
Unlike annuitization, the Income Rider gives you the flexibility to stop and restart Income Withdrawals when you choose.
Payments will continue for life, even if the contract’s Accumulation Value is depleted.
Income Withdrawals may be taken monthly, quarterly, semi-annually, or annually.
After Income Withdrawals start, the annual penalty-free withdrawal amount is the greater of 10% of the Accumulation Value or your Income Withdrawal.
Waiting to start Income Withdrawals can significantly increase income over the remaining years.
ENHANCED INCOME WITHDRAWALS
The cost of nursing care later in life can have a severe impact on retirement resources.
To help plan for this financial unknown, the Income Rider features Enhanced Income Withdrawals – included at no additional cost.
If you become chronically ill, the 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:
- or permanent severe cognitive impairment.
If utilized, the original income payment amount resumes when Enhanced Income Withdrawals end.
Enhanced Income Withdrawals may be utilized after the annuity contract has been in effect for 3 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 between the ages of 60 and 90.
During the Enhanced Income Withdrawal period, the chronic illness must be certified by a physician annually.
Check out a Long Term Care Annuity to supplement your long term care insurance needs.
INCOME RIDER ISSUE REQUIREMENTS
The owner must be 40 or older to elect the Income Rider.
The rider may be elected during the annuity application process only and cannot be added after the annuity contract has been issued.
In order to qualify for the rider, the owner and annuitant must be the same person, and joint owners must be spouses; the spouse may include a domestic partner (in some cases, but does not include spousal continuation).
You may 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.
- If the Excess Withdrawal amount exceeds the penalty-free provisions of the contract, it may be subject to a surrender charge or Market Value Adjustment.
- Excess Withdrawals reduce future Income Withdrawals and the Benefit Base proportionately to the reduction in Accumulation Value.
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 later choose 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.
The rider may be terminated upon your request. Once the rider is terminated, it cannot be restarted. The rider will be terminated automatically upon:
- Death of first contract owner, unless spousal continuation is elected.
- Full surrender n Annuitization8
- Contract ownership change – other than a spousal continuation or the addition of a spousal joint owner
- Excess Withdrawals that reduce the Accumulation Value to zero