A single premium deferred annuity featuring a one-year annual reset interest rate. Allows multiple premiums in the first year only. A base contract and the availability of two options provide a choice of four contract variations.
- 0-85 (all Owners/Annuitants)
- Interest rates will vary for the Base Contract and Liquidity Option. Initial interest rate is guaranteed for one contract year. The current interest rate may change on each contract anniversary, subject to the minimum guaranteed interest rate.
- Upon death of owner, accumulation value.
Nursing Home Waiver
- After the first contract year, surrenders are not subject to surrender charges or MVA in the event of nursing home confinement of owner for 90 days. There is no charge for this rider.
Terminal Illness Rider
- If the owner of the contract is diagnosed with a terminal illness, surrender charges and MVA are waived for a withdrawal of up to 75% of the accumulation value. There is no charge for this rider.
- Declining surrender charge, based on 9-year schedule. Percentage of accumulation value by contract year: 12, 11, 10, 9, 8, 7, 6, 4, 2%. Surrender charges may vary by state. Applies to partial withdrawals in excess of the penalty-free withdrawal amount. In the event of a full surrender, applies to accumulation value and any penalty-free withdrawals in the same contract year.
- Interest earned in the previous 12 months may be withdrawn at any time without surrender charge or MVA.
- Same as Base Contract
- Same as Base Contract
Market Value Adjustment (MVA)
- Available as an option at contract issue only. If elected, a Market Value Adjustment (MVA) is applied when surrender charges apply. In no event will the cash surrender value, after adjustment made for MVA, be less than the minimum guaranteed contract value or greater than the accumulation value.
- Declining surrender charge – based on 6-year schedule. Percentage of accumulation value by contract year: 12, 11, 10, 9, 8, 7%. Surrender charges may vary by state. Applies to partial withdrawals in excess of penalty-free withdrawal amount. In the event of full surrender, applies to accumulation value and any penalty-free withdrawals in the same contract year.
- After the first contract year, up to 10% of the accumulation value on the previous contract anniversary may be withdrawn each contract year without surrender charge or MVA.
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If both MVA and Liquidity Options are selected, the contract is issued with a 6-year surrender charge schedule, 10% free withdrawals after the first contract year, MVA, 1.5% premium bonus and same rate as Liquidity Option.
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Surrender of the contract may be subject to surrender charges or market value adjustment. Withdrawals before age 59½ may result in a 10% IRS penalty tax. In the event of a full surrender, charges will apply to any penalty-free amounts taken during the same contact year. Surrender charges may vary by state. The guarantees expressed are based on the claims paying ability of EquiTrust Life Insurance Company. EquiTrust cannot give legal, tax or accounting advice. Your personal tax advisor can provide important information with respect to the purchase of this annuity contract and its taxation.
This information briefly highlights EquiTrust’s ChoiceFour contract and its benefits. Contract issued on Contract Form Series ET-SPA-2000 (11-04) or ICC16-ET-SPA-2000(07-16). Group Certificates issued on Form Series ET-SPA-2000CE (11-04). Product features, issue ages, riders and availability may vary by state. For costs and complete details of coverage, including any exclusions, reductions or limitations, and the terms under which the contract may be continued in force, contact your EquiTrust agent.