At EquiTrust Life Insurance Company, we design and administer financial products oriented toward individuals approaching or in retirement. Managers play favorites, have created a hostile environment where bullying their employees is acceptable. But, prior to going out and signing up for this product right now, it is recommended that you first get a more in-depth understanding of how the annuity works – and how it may or may not work with your specific financial goals (both short and long-term) in mind. Nothing on this website is a recommendation to buy or sell an annuity. Here, however, in return for having access to most or all of your money in a shorter time period, you will “trade off” with a lower interest rate. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. This interactive map shows the best counties for small business owners in the U.S. and in each state. But, knowing how an annuity works, as well as knowing about any of the fees that can be charged, is essential as it can greatly affect your return, as well as the amount of income you’ll receive in the future. EquiTrust … TrustedChoice.com's Final Review. A relative newcomer to the insurance industry, EquiTrust was established in 1996. EquiTrust Life Insurance Company’s financial strength was rated at a B++ by A.M. Best and a BBB+ by Standard & Poor’s (S&P). October 5, 2020. That being said, there could be some better alternatives out there for you – particularly as you will likely be plunking down a sizeable chunk of your savings to purchase an annuity. Because of this, income taxes can play a major role in determining the financial success of a given small business. You may be on our website right now as a result of an annuity seminar that you attended where, in return for a lunch or dinner, the presenter provided you with a lot of information about the EquiTrust Choice Four fixed annuity, or some other similar product. Should you surpass the allotted withdrawal, look out for a surrender charge. EquiTrust does not offer investment advice to any individual or agent and this material should not be construed as investment advice. And, if you opt to go with the lifetime income option, this can alleviate, at least somewhat, the concern about outliving all of your retirement income down the road. Market Value Index Annuity from EquiTrust Life Insurance Company gives you the benefits when markets are rising and protection when they’re fluctuating.. Two multi-asset, risk-controlled index options provide an extra level of diversification. To determine how attractive a region is for small business owners, we compared the number of tax returns that report small business income compared to the total tax-filing population of the region. For example, if you go with the base contract (which is option number 1 above), you could be looking at nine full years of surrender penalties, that start at a whopping 12%. Current Rates. Thank you for setting up a time to chat with one of our specialists. Because of this, investors who are in the market for specific financial tools, such as single premium life insurance and fixed / fixed indexed annuities, may find what they’re looking for here. Our clients seek tax-efficient means for: … Market Twelve Bonus Index is a single premium fixed indexed deferred annuity with 14 year surrender period, available to single persons and couples age 0 to 75. Regards, Brian. SmartAsset analyzed data to find the best places for small business owners in the country. Equitrust Review Bottom Line. (Going with this option, though, the surrender period is going to be longer – meaning that you’ll be hit with a surrender fee over the first nine years). With that in mind, if you happened to run across any details in this annuity review that needs to be corrected or updated, please let us know and we will be happy to get them corrected immediately. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. No product companies have endorsed the reviews on this site, nor is AnnuityGator.com compensated for reviews. That is to basically combine the benefits of both. The money in the fixed account will grow based on a specific rate, whereas the indexed one earns interest based on the performance of one of five indexes. We also realize that the available information with regard to annuity products can – and often does – change over time. Like most annuity companies, EquiTrust does not publicly release its fixed interest rates. Cindy A. Honolulu, HI. 4. And, even though it is a single premium product, the company does allow for additional premiums to be made during the first year. In this annuity review, we will be covering the following details on the EquiTrust Choice Four fixed annuity product: Product Type. How it is most poorly used. EquiTrust Life Insurance Company is regarded as financially stable and has therefore been awarded a “B++” by A.M. Best, and a “BBB+” by Standard & Poor’s. West Des Moines, IA 50266-2521 (515) 226-5169 ... reviews and/or responses on this website to affirm that the … Unfortunately, because of the extremely low-interest rate environment that we’ve also been subject to, securing safety can come at the price of very low returns, which in turn, can have an impact on what you are ultimately able to save, and turn into an income stream in the future. EquiTrust provides life insurance, annuities … Likewise, a named beneficiary may receive the funds in the contract if death occurs prior to receiving the contract value. EquiTrust's annuities often have surrender penalty periods of up to 14 years. Product issue is subject to underwriting guidelines, review, and approval. By contacting us you may speak with an insurance licensed agent in your state, and you may be offered insurance products for sale. As a fixed indexed annuity, you’ll receive both a fixed and an indexed account. If you’ve been considering the purchase of an annuity – or any financial vehicle, for that matter – it is always important that you consider several factors prior to moving ahead. 9/7/2018. Market Ten Bonus Index Annuity from EquiTrust Life Insurance Company gives you the benefits when markets are rising and protection when they’re fluctuating.. Plus, there are tax advantages to owning a fixed annuity.. And the bonus isn’t just in the name. Therefore, despite its positive surplus and solvency, it’s been rated just “B++” by A.M. B… However, this particular product could also fall a bit short – and quite frankly, there may be a better alternative for you, especially if you are in search of a higher return. If a fixed annuity seems to be the best alternative for you, however, you can be assured that it will provide you with the protection of your principal, as well as a guaranteed lifetime income in the future – which is something that other financial vehicles just cannot do. Is laddering recommend for entry? So, if you’re ready to begin, let’s go ahead and dive in! The fee schedule for the MarketTen Bonus Index annuity is fairly light, as you won’t pay any annual contract fees. If you have questions about which annuity best fits your retirement plan, consider speaking with a financial advisor. You may also have noticed that there are some annuity sites out there that make some pretty bold claims about the annuities that they offer, such as: But, while these promises might sound enticing, it is still necessary for you to determine whether or not they are actually true, because once you have committed to purchasing an annuity, it can be extremely difficult to get out of it – even if you later determine that it doesn’t do what it was promised to do. But in 2015, Magic Johnson Enterprises, which is owned by basketball hall-of … With all the EquiTrust products, they are not for everyone and are not ideal if you want basic coverage. Based on capital standards closely watched by insurance-industry regulators, EquiTrust … Your email address will not be published. Fees are largely held to a minimum with the Certainty Select annuity, and you won’t have to pay any annual fees to hold onto your contract. Independent Review of EquiTrust Life Insurance Company . EquiTrust … These reviews break down annuity offerings from … Managers play favorites, have created a hostile environment where bullying their employees is acceptable. To determine income tax burdens across counties, we used the national median household income. EquiTrust life insurance company is based in West Des Moines, Iowa. One that warrants a hard look is EquiTrust … EquiTrust Life Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. EquiTrust Life Insurance Company is considered to be stable financially, and because of that, the company has earned the following ratings from the insurer rating agencies: B++ from A.M. Best Company. Annuity riders may be available for an additional annual premium that can provide additional benefits and income guarantees. *Note that with this option, the interest that is earned in the previous 12 months may be withdrawn at any time without a surrender charge or MVA. Save my name, email, and website in this browser for the next time I comment. We also use content and scripts from third parties that may use tracking technologies. As the fine print is built into plaintiff's contracts with EquiTrust… ... EquiTrust Life Insurance Company is an Illinois domiciled life insurance company with offices located in West Des Moines, Iowa and Chicago, IL, and is a Magic Johnson Enterprises company. This is because the positive points about annuities can easily be found in brochures and other marketing materials, while the drawbacks are oftentimes hidden in a myriad of “fine print.” This is where we can help. Equitrust was a great company at one time. No flexibility and no interest in … Sources: Internal Revenue Service (IRS), US Census Bureau 2018 American Community Survey, Government Sources, SmartAsset, Bank of America® Travel Rewards Visa® Credit Card Review, Capital One® Quicksilver® Cash Rewards Credit Card Review, If you’re considering incorporating an annuity into your retirement income plan, a, Don't forget that any investments held outside retirement accounts are subject to capital gains taxes, which can take a bite out of your nest egg. If, however, you go with the liquidity option, your surrender charge drops down to “only” six years, also starting with a pretty high 12% in the first year – and remaining fairly high throughout the entire time period. Required fields are marked *. But once the second year begins, withdrawals are fee-free for up to 10% of your account’s overall value. For a fee, this rider will compound the contract’s benefit base by 6.5% for as many as 10 years. EquiTrust Life is committed to meeting the financial obligations of our customers. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. In your quest for more information about annuities online, you may have run across some highly conflicting information about these products. Equitrust Life Insurance Company Review. In other cases, you may have noticed that the information about annuities can be somewhat dry and boring, and about as much fun to read as getting a root canal. Also, because there aren’t really any other features on the Choice Four annuity that make it stand out from most other fixed annuities you’ll find in the market place, it may or may not give you a leg up on return. Although EquiTrust is considered to be on the smaller side in terms of the overall insurance industry, the company focuses on a specific niche with its life insurance and annuity products. 7100 Westown Pkwy Suite 200. Rather, we will give you the good, the bad, and even the ugly. When you’re in the process of researching the pros and cons about annuities, it can be a bit of a challenge to find all of the pertinent details that you need. Be mindful that this in addition to standard income taxes. Due to the amount of volatility that we’ve seen in the market (and the economy) over the past decade or so, the demand for fixed annuities has grown significantly, particularly as a way for retirees and pre-retirees who are saving for retirement to keep their principal safe. But, even though it can be highly reassuring to have these types of guarantees, annuities should always be considered as a long term financial endeavor. EquiTrust Life Insurance Company has been around since 1996. EquiTrust affords annuitants the right to add on an optional income rider to this contract. This allows you to customize your contract to your personal financial situation. All content is for educational purposes only. So, if you felt that this annuity review was helpful, then please feel free to forward it and share it with others who you think may also find it beneficial. A: You can expect any request received by EquiTrust … We have been doing this for quite a while now – far longer than our competitors – and because of that, we’ve come to be known as a highly trusted source of annuity information. Given that, we would like to thank you for sticking with us to the end. If you fall into the small niche EquiTrust … If you’ve never been to our website before, we would like to thank you for stopping by and visiting AnnuityGator.com. So, you could have the option to use the funds if confined to a nursing home. However, you can check with the company to see what they are currently offering. No flexibility and no interest in … EquiTrust Life Insurance Company describes the Choice Four fixed annuity as a traditional fixed-rate annuity product that offers a choice of durations, with annual reset interest. You can selectively provide your consent below to allow such third party embeds. All Rights Reserved | Privacy Policy, Independent Review of the Penn Mutual Premier Foundation Plus Indexed Annuity, Independent Review of the Midland National Life Paragon Plus 14 Fixed Index Annuity, We use cookies to enhance your experience while using our website. We realize that this annuity review was a tad bit longer than usual. However, for those who fit the bill, EquiTrust Life Insurance Company could be an excellent financial resource and tool. In this case, you would be allowed to have a shorter surrender charge schedule and yearly access to up to 10% of your money without a surrender charge or a Market Value Adjustment. The carrier does have a couple of decades’ worth of experience under its belt in the … With so few reviews, your opinion of Equitrust Life Insurance Company could be huge. This is an independent annuity product review. To illustrate what you can expect to earn on a $100,000 premium, EquiTrust offers the following projections: All information is accurate as of the writing of this article. Not only will you have to pay standard income taxes, but a 10% tax penalty will be levied against you. Realistic long-term return expectations. Provided you have owned your contract for at least one year and are at least 50 years old, EquiTrust will allow you to withdraw up to 10% of your contract value per year. Here, though, you would also receive a lower interest rate. As its name might indicate, the ChoiceFour® fixed annuity has a choice of four versions that each come with different benefits. In this annuity review, we will be covering the following details on the EquiTrust Choice Four fixed annuity product: Annuities can be complex. EquiTrust does not publish its fixed interest rates for this annuity. The Choice Four annuity is aptly named, as it is actually, according to EquiTrust, “four products in one,” So, investors can essentially choose the product that is best for them from the following options: The Base Contract features a one-year fixed rate that is reset on an annual basis. For the fourth consecutive year, EquiTrust is recognized among the “Wards 50” of top life and health insurance companies. Over the past several years, fixed annuities have become much more popular as a way to grow principal on a steady basis, and to ensure that no money is lost, even in light of an extremely volatile market environment. So, depending on the version of the Choice Four that you opt for, you could qualify for a premium bonus, as well as a shorter surrender (6 years versus 9 years), which means that you could have access to most or all of your principal if you should need it. By Steve Kaufman, ... about another stock market selloff, the question then becomes which FIA to buy. The problem is, though, that even if you’re not technically “losing” money, you are likely diminishing the ability to beat – or even to meet – future inflation. Equitrust was a great company at one time. Jonathan Fritz B.A. In addition to the withdrawal fees charged by EquiTrust, don't forget that the IRS will hit you with a 10% income tax penalty if you withdraw funds from your annuity before you turn 59.5. The company was actually purchased by Guggenheim Partners – a global investment and advisory firm – that has been providing portfolio management for many of the EquiTrust products throughout the years. Small businesses are typically incorporated as pass-through entities, meaning that the business owners pay income taxes on the company profits rather than the company itself paying income tax. For both the Base and MVA ChoiceFour contracts, you can withdraw as much as the equivalent of your interest earned over the last year. This company offers a wide array of life insurance and annuity … How it is used. Be wary of the fact that an annuity withdrawal made before age 59.5 likely means you’ll be charged a 10% income surtax beyond your standard tax rate. Please advise on the Equitrust market value index based on the S+P 500. Glassdoor has 5 EquiTrust Financial Services reviews submitted anonymously by EquiTrust Financial Services employees. In the case of the Choice Four fixed annuity from EquiTrust, there is no additional fee charged for either the nursing home waiter, the terminal illness rider, or the death benefit. To figure out how much you might owe, stop by our. With the Certainty Select annuity, the longer the guarantee period term, the better your interest rate will be. We need to warn you, though, that we aren’t going to paint a rosy picture that focuses only on the positives – which is what many commissioned sales people will do.