Index credits 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 S&P MARC 5% Excess Return Index at the beginning of the policy year to the value of the end of the policy year. If the value is greater than the beginning value, you are credited with the percentage increase, multiplied by a participation rate.
Any point-to-point percentage increase is multiplied by a participation rate. The resulting amount is credited to your policy at the end of the policy year. The participation rate may be reset at the beginning of each policy year at the discretion of EquiTrust, but can never be less than the guaranteed minimum participation rate.
Index credits for any crediting period can only be positive, or zero. Once added to your policy, index credits are locked in. If the index is down for the year, the credited amount is zero. If index values decline in later years, any index credits previously added cannot be lost.
The “S&P Multi-Asset Risk Control 5% Excess Return Index” and “S&P 500®” Indices (“Indices”) are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by EquiTrust Life Insurance Company (“the Company”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by the Company. The products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Indices.