MINIMUM Caps and Participation Rates Lowered on Several Index Products
Effective March 1, 2008, the contractual minimum cap rates and minimum participation rates will be reduced for several EquiTrust Life index products. Only new business issued on or after 3/1/08 is impacted by this change; in-force contracts issued prior to this date are not affected.
Revised Disclosure Statements and marketing materials are available now.
The minimum rates will be the same for all products that feature these accounts:
1-Year Point-to-Point Cap Index Account: 4% minimum cap
1-Year Avg Cap Index Account: 5% minimum cap
1-Year Avg Participation Index Account: 40% minimum part rate
Products Affected
MarketPower Bonus Index
- 1-year PTP Min Cap from 5% to 4%
- 1-year Avg Min Cap from 6% to 5%
- 1-year Avg Min Participation from 50% to 40%
MarketValue Index
- 1-year PTP Min Cap from 5% to 4%
- 1-year Avg Min Cap from 6% to 5%
- 1-year Avg Min Participation from 50% to 40%
MarketSeven Index
- 1-year PTP Min Cap from 5% to 4%
- 1-year Avg Min Cap from 6% to 5%
- 1-year Avg Min Participation from 50% to 40%
MarketBooster Index
- 1-year Avg Min Participation from 50% to 40%
MarketTen Bonus Index
- 1-year Avg Min Participation from 50% to 40%
MarketTen Index
- 1-year Avg Min Participation from 50% to 40%
More Information About Disclosure Statements
The revised Disclosures currently on AppBuilder (dated 12-07) explain that contracts in which funds are received prior to 3/1/08 will be issued with the current/higher minimum rates. Contracts in which funds are received on or after 3/1/08 will be issued with the revised/lower minimums. Please begin use of the revised Disclosures immediately. On or after 12/20/07, disclosures dated prior to 12-07 will not be accepted.
More Information About Marketing Materials
Current marketing materials will show a revision date of "12-07" on the backside, next to the form number. These 12-07 Client Brochures can be shared with clients now, despite the higher minimum rates for contracts issued on or before 2/29/08. After 2/29/08, only materials dated 12-07 or later should be used for sales of these six products. We suggest you replace your inventories with revised materials for these products by ordering new supplies. Revised PDFs are available now at the Sales Tools link.
Pending Business
Any business submitted prior to 3/1/08 but not issued until on or after this date will be issued with the lower minimum rates.
Transition Rules
Click here for Transition Rules pertaining to Disclosure Statements and Pending Business.