Index credits are based on the average of the monthly values of the S&P 500® Index for the contract year compared to the index value at the beginning of the contract year. The date of each monthly index value used is the date of your contract anniversary. If the average index value is greater than the beginning value, you are credited with the percentage increase, multiplied by a participation rate.
The participation rate may be reset at the beginning of each contract year at the discretion of EquiTrust but can never be less than the guaranteed minimum participation rate.
Index credits for any credited period can only be positive, or zero. Once added to your accumulation value, index credits are locked in. If the average index value is less than the beginning index value, the credited amount is zero. If index values decline in later years, any index credits previously added cannot be lost.
The S&P 500® Index is a product of S&P Dow Jones Indices, LLC. (“S&P DJI”) and has been licensed for use by EquiTrust Life Insurance Company. S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services, LLC. (“S&P”). These trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by EquiTrust Life Insurance Company. EquiTrust index annuities are not sponsored, endorsed, sold or promoted by S&P DJI, S&P, or any of their respective affiliates or third party licensors, and none of such parties make any representation regarding the advisability of purchasing EquiTrust index annuities nor do they have any liability for any errors, omissions, or interruptions of the S&P 500®.
Index annuities are not stock-market investments and do not directly participate in any equity investments. The market index does not include dividends paid on underlying stocks, and therefore does not reflect the total return of underlying stocks. Purchases of an index annuity are not direct investments in the S&P 500® Index. Withdrawals from an index annuity may be subject to surrender charges.