Index credits to your policy’s Accumulation Value are based on the change in the index value for the policy year. The point-to-point strategy compares two points – the value of the index at the beginning of the policy year to the value at the end of the policy year.
Any point-to-point percentage increase is multiplied by a participation rate. The resulting amount is credited to your policy’s Accumulation Value at the end of each policy year.
The participation rate may be reset at the beginning of each policy year at the discretion of EquiTrust Life Insurance Company but can never be less than the guaranteed minimum participation rate of 10%.
Once added to your Accumulation Value, index credits are locked in. If index values decline in later years, any index credits previously added cannot be lost. If the index is down for the year, the credited amount is zero. However, policy expense charges, cost-of-insurance rates and policy fees can reduce your Accumulation Value.