Goldstein Scorecard: D+ (dated October 4, 2026). See how it is graded.
EquiTrust MarketPower Bonus Index Review: The 12% Bonus, a 14-Year Surrender Schedule From 20%, and the Contract Minimums
Written & reviewed by Hans Goldstein, EA, Independent Licensed Insurance Producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Facts verified against EquiTrust’s MarketPower Bonus Index brochure (06-26) and disclosure (03-25), EquiTrust’s website and AM Best’s August 20, 2026 release on October 4, 2026 · Updated
MarketPower Bonus Index is EquiTrust Life Insurance Company’s 14-year bonus fixed index annuity. Per EquiTrust’s brochure (06-26), it adds a 12% bonus to first-year premiums, with surrender charges of 20% in years 1 and 2 stepping down to 2% in year 14 (a 10-year schedule from 19% in 17 states) plus an MVA. Contract floors include a 1.0% minimum cap and an 87.5% minimum contract value. AM Best: B++ (Good), affirmed August 20, 2026. Current rates are agent-only.
Rating watch (checked October 4, 2026): AM Best rates EquiTrust Life Insurance Company B++ (Good), outlook stable, as of August 20, 2026 (AM Best press release). AM Best moved the outlook to stable from positive, citing elevated financial leverage and pressured interest coverage at EquiTrust’s new parent, Amistad Financial Group, LLC. B++ is one notch below A- on AM Best’s scale; it is AM Best’s “Good” category, not a downgrade.
S&P Global Ratings affirmed its A- rating and revised the outlook to negative on April 15, 2026 (S&P release), and Fitch affirmed A- and revised the outlook to negative on May 15, 2026 (Fitch release); both cited debt at the parent that is expected to be serviced largely by EquiTrust. EquiTrust says ownership transitioned to Amistad Financial Group in 2025 (EquiTrust company history).
What it means: an annuity’s values and any contractual guarantees are backed by the claims-paying ability of EquiTrust Life Insurance Company. If an insurer fails, state guaranty associations cover annuity values up to set limits (in California, 80% of value up to $250,000 per owner per insurer; see California guaranty coverage and guaranty limits by state). A rating action is not a default. It is a reason to keep the amount per insurer within your state’s limit and to read the latest rating before you buy.
Correction: an earlier version of this page called the bonus 15% and published caps from EquiTrust’s rate summary, which EquiTrust marks for financial professionals only. EquiTrust’s consumer brochure (06-26) and website state 12%. The rates, the case studies, the Complexity Index score and unsourced claims were removed; the AM Best grade is now dated to its August 20, 2026 affirmation.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
MarketPower Bonus Index surrender charges by year
| Contract year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15+ |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Most states | 20% | 20% | 19% | 19% | 18% | 17% | 16% | 14% | 12% | 10% | 8% | 6% | 4% | 2% | 0% |
| AK, CT, DE, ID, IL, MN, MT, NJ, NV, OH, OK, OR, PA, TX, UT, VT, WA (10 years) | 19% | 17% | 15% | 13% | 11% | 10% | 8% | 6% | 4% | 2% | 0% |
Surrender charges apply to the full Accumulation Value, including the bonus. Model the exit cost in the annuity surrender charge calculator.
Contract minimums (the guaranteed floor)
| Account or value | Contract minimum |
|---|---|
| 1-Year Interest (fixed) account | 1.0% minimum guaranteed interest rate |
| S&P 500 1-yr point-to-point cap (with or without 1.00% buy-up fee) | 1.0% minimum cap |
| S&P 500 1-yr point-to-point participation with 1.00% buy-up fee | 10% minimum participation |
| S&P 500 1-yr performance trigger | 1.0% minimum trigger rate |
| S&P 500 1-yr monthly average participation | 10% minimum participation |
| S&P 500 1-yr monthly cap | 0.5% minimum monthly cap |
| S&P 500 Dynamic Intraday TCA (1-yr and 2-yr), S&P MARC 5% ER, Barclays Focus50 | 10% minimum participation |
| Minimum Guaranteed Contract Value | 87.5% of premiums, less partial withdrawals, accumulated at a rate no lower than 1% and no higher than 3% (fixed at issue) |
Contract basics (verified)
| Feature | MarketPower Bonus Index |
|---|---|
| Issuer | EquiTrust Life Insurance Company |
| Premium bonus | 12% on premiums paid in the first contract year, credited immediately; a permanent part of the Accumulation Value; 100% included in the death benefit |
| Premiums | Initial premium plus additional premiums during the first contract year (added to the fixed account until the anniversary), per the brochure |
| Issue ages | Up to 75, per EquiTrust’s website |
| Free withdrawal | Up to 10% of the Accumulation Value each year after the first contract year |
| MVA | On surrenders or withdrawals over 10% while a surrender charge applies; can raise or lower the value; cannot reduce it below the Minimum Guaranteed Contract Value |
| Buy-up accounts | S&P 500 cap and participation accounts with a 1.00% annual fee for a higher rate; if the index declines, value in those accounts declines by the fee |
| Nursing Home Waiver | No charge; after year 1, full access without surrender charges or MVA after 90 consecutive days confined |
| Terminal Illness Rider | No charge; up to 75% of the Accumulation Value without charges; 1-year waiting period |
| Death benefit | Full Accumulation Value, without surrender charges or MVA |
| Agent pay | Not described in EquiTrust’s consumer brochure or disclosure |
Index accounts track the S&P 500, the S&P 500 Dynamic Intraday TCA Index (15% volatility target), the S&P MARC 5% Excess Return Index (5% target, up to 150% leveraged exposure in low volatility) and the Barclays Focus50 Index (5% target), per the brochure. See how these methods credit in how annuity crediting actually works.
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Goldstein Scorecard (dated October 4, 2026)
| Dimension | Grade | Basis (sourced fact) |
|---|---|---|
| Financial strength | C+ | AM Best B++ (Good), outlook stable, 8/20/2026; S&P and Fitch A- with negative outlooks (4/15/2026, 5/15/2026). |
| Rate or cap competitiveness | Incomplete | Current rates appear only on an agent-only rate summary; not published here. |
| Guaranteed floor | D | 1.0% minimum caps and fixed rate, 10% minimum participation, MGCV 87.5% of premium at 1% to 3%. |
| Liquidity | D | 14 years starting at 20% (10 years from 19% in 17 states); MVA; 10% free after year 1; nursing home and terminal illness waivers. |
| Costs | B- | No base contract fee described; optional buy-up accounts charge 1.00% a year. |
| Transparency | C | Brochure and disclosure with contract minimums are public; current rates are agent-only. |
| Guaranteed minimum cap | 1.0% | S&P 500 1-year caps (0.5% on the monthly sum cap), EquiTrust MarketPower disclosure ET-MPP-1101 (03-25) (checked October 4, 2026). |
| Minimum participation rate | 10.0% | All participation strategies, EquiTrust MarketPower disclosure ET-MPP-1101 (03-25). |
| Overall | D+ | Weighted toward financial strength, guaranteed floor and liquidity for a buyer who wants a known result. |
How these contract minimums compare across products: guaranteed minimum caps across FIAs (October 2026).
Get the current numbers for your amountor call 213-414-2808
Pros and cons
- Pro: The 12% bonus is credited immediately and, per EquiTrust, is not forfeited on surrender.
- Pro: Contract minimums are written into a public disclosure: you can see the floor before you buy.
- Pro: Nursing home and terminal illness waivers are included at no charge.
- Con: Surrender charges start at 20% and last 14 years in most states, and they apply to the full Accumulation Value, bonus included.
- Con: Contract floors are low: 1.0% caps, 10% participation, and an 87.5% minimum contract value.
- Con: AM Best B++ is below A-, and S&P and Fitch both moved EquiTrust to a negative outlook in 2026.
- Con: Current rates are not public.
Who it’s for, and when to look elsewhere
Fits: a buyer aged 75 or under who will not touch the money beyond 10% a year for the full surrender period, wants the bonus credited up front, and keeps the amount within their state’s guaranty limit given the B++ rating.
Look elsewhere if:
- You might need a lump sum within 14 years (10 in the listed states).
- You want a shorter EquiTrust bonus contract: see the EquiTrust bonus FIA lineup (MarketTen Bonus Index and MarketEdge Bonus Index run 10 years).
- You want an insurer rated A- or better by AM Best.
- You mainly want a known rate. A MYGA locks a declared rate for the term, backed by the claims-paying ability of the issuing insurer. For comparison, A-rated-or-better insurers were paying about 5.50% to 6.05% on 5-year MYGAs and the best nationally available 5-year CDs about 4.70% to 5.00% APY (MYGAs: public carrier rate sheets, October 14, 2026; CDs: Bankrate and Popular Direct, October 18, 2026). Current rates: MYGA rates.
Run the numbers: annuity surrender charge calculator and annuity calculator. Related reviews: EquiTrust MarketPower, MarketTen and MarketEdge compared, EquiTrust Bridge and is an annuity bonus good or bad?
Questions to ask your agent
- Show me the current MarketPower Bonus Index rate sheet with its effective date for my state, and confirm the bonus percentage on the application in writing.
- Which surrender schedule applies in my state (14-year from 20% or 10-year from 19%), what is my cash surrender value in years 1, 3, 5 and 10 on the illustration’s guaranteed column, and how is the MVA calculated?
- What Minimum Guaranteed Contract Rate will my contract carry (between 1% and 3%), and what are the minimum caps and participation rates in writing?
- Which accounts carry the 1.00% buy-up fee, and what happens to those accounts in a down year?
- How are you paid on MarketPower Bonus Index? Commission comes from the insurer and is built into pricing, not deducted from premium. What percentage is it, and does this 14-year contract pay you more than a 10-year one? (Background: how annuity commissions work.)
Get a second opinion before you sign
Talk to a licensed annuity expert. Hans.
A premium bonus comes with a longer surrender schedule and lower crediting rates than a no-bonus contract. Check the full trade before you sign. You wouldn't have major surgery without a second opinion. Don't sign an annuity contract without one either.
Send your details. Within one business day, written independent review of your EquiTrust quote + side-by-side against 2 alternatives.
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Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
From my desk
On a MarketPower Bonus Index illustration, I go to the guaranteed column and the surrender row first. A 12% bonus followed by a 20% surrender charge in years 1 and 2 means the cash surrender value early on is below what you put in, bonus included, unless the minimum contract value is higher.
The number buyers most often misread on bonus FIAs is the bonus itself. It is real money in the Accumulation Value, but the surrender schedule, the low contract floors and whatever caps the insurer sets each year are what determine what you can walk away with.
Against a MYGA, I compare the guaranteed surrender value in year 10 or 14 with a MYGA compounding at its declared rate for the same years, and I keep the amount per insurer within the guaranty limit.
Frequently asked questions
What is EquiTrust MarketPower Bonus Index?
An accumulation-focused fixed index annuity from EquiTrust Life Insurance Company that adds a 12% premium bonus to premiums paid in the first contract year. It has a 14-year surrender charge period in most states (10 years in 17 states) and is available for issue ages up to 75, per EquiTrust.
Is the MarketPower bonus 12% or 15%?
EquiTrust’s consumer brochure (06-26) and website state a 12% bonus on premiums paid in the first contract year. An earlier version of this page said 15%. If an agent quotes a different percentage, ask for it in writing on EquiTrust’s own form.
What are the MarketPower Bonus Index surrender charges?
20%, 20%, 19%, 19%, 18%, 17%, 16%, 14%, 12%, 10%, 8%, 6%, 4% and 2% over 14 years in most states. In AK, CT, DE, ID, IL, MN, MT, NJ, NV, OH, OK, OR, PA, TX, UT, VT and WA it is 10 years: 19%, 17%, 15%, 13%, 11%, 10%, 8%, 6%, 4% and 2%. An MVA may also apply.
Do I lose the bonus if I surrender?
No, per EquiTrust: the bonus is a permanent part of the Accumulation Value. But surrender charges and the MVA are applied to the full Accumulation Value, including the bonus, during the surrender period.
What are the guaranteed minimums?
Per EquiTrust’s disclosure (03-25): 1.0% minimum interest on the fixed account, 1.0% minimum cap on the S&P 500 point-to-point cap accounts, 0.5% on the monthly cap, 1.0% minimum performance trigger, 10% minimum participation rates, and a minimum guaranteed contract value of 87.5% of premiums less withdrawals at a rate between 1% and 3%.
What are the current MarketPower Bonus Index rates?
EquiTrust’s current rate summary is for financial professionals only and not for public use, so current caps and participation rates are not published here. Ask for the dated rate sheet for your state and premium.
How is EquiTrust rated?
AM Best affirmed B++ (Good) with a stable outlook on August 20, 2026. S&P (April 15, 2026) and Fitch (May 15, 2026) affirmed A- and revised their outlooks to negative. Guarantees are backed by the claims-paying ability of EquiTrust Life Insurance Company.
Sources (checked October 4, 2026)
- EquiTrust, MarketPower Bonus Index brochure, ET-MPB-BR-1100 (06-26): 12% bonus, surrender schedules, MVA, waivers, index descriptions, buy-up fee
- EquiTrust, MarketPower Bonus Index disclosure statement, ET-MPP-1101ND (03-25): contract minimums, MGCV, surrender schedules
- EquiTrust, accumulation-focused FIAs with a premium bonus (issue ages, bonuses vested day 1): checked October 4, 2026
- AM Best, Revises Outlooks to Stable for EquiTrust Life Insurance Company: August 20, 2026
- S&P Global Ratings, EquiTrust outlook revised to negative, A- affirmed: April 15, 2026
- Fitch Ratings, Fitch Revises EquiTrust’s Outlook to Negative; Affirms IFS at A-: May 15, 2026
- EquiTrust, About and company history (ownership): checked October 4, 2026
MYGA and CD benchmark: public carrier rate sheets (MYGAs, October 14, 2026) and DepositAccounts (CDs, September 24, 2026).
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398). Not affiliated with EquiTrust. No carrier paid for this review. Figures are copied from the carrier documents named, with their dates; they change and vary by state. Confirm current terms in the latest disclosure and the contract before buying.
Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.