Frequently Asked Questions

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EquiTrust Life Insurance Company Rating

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Yes, on non-qualified, inforce annuities only.

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Effective 4/21/2010, EquiTrust will no longer accept the following types of qualified money*:

• 401(k)
• 403(b)
• 457
• 501(c)(3)
• Defined Benefit Plan
• Pension Plans
• Profit Sharing Plan
• Keogh / HR-10
• Plan money not listed above as an accepted class

*Money coming out of one of these plans and into an IRA (rollover, transfer, etc.) will be accepted by EquiTrust if such transactions are IRS approved.

EquiTrust will continue to accept the following classes of tax-qualified money:

• Traditional IRA
• SEP IRA
• Roth IRA
• SIMPLE IRA - Transfers only; no new or ongoing contributions

Confidence Income Annuity is available for non-qualified and IRA business only.

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Grantor Trusts: An application for a trust-owned annuity will, generally, be viewed as unsuitable when the Grantor of the Trust and the Annuitant are not the same person. For all trust-owned annuity applications, the Trust Certification Form should be submitted with the application and other required new business forms. Suitability will be reviewed as with any other application.

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Yes, year end value letters are mailed each January to owners of qualified plans. Upon the anniversary of the owner's 72nd birthday, an additional reminder letter along with a RMD withdrawal form is mailed to the owner.

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Yes, letters are mailed 45 days prior to the end of the guarantee period to remind them they have a 30-day window to decide what to do with the Accumulation Value of their contract. The 30-day window begins PRIOR to their Contract anniversary date.

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Yes, to designate the death payout, the owner will need to fill out the Beneficiary Designation with Restricted Payout Form - Non-Qualified (ET-2533NQ) or the Beneficiary Designation with Restricted Payout Form - Qualified (ET-2533Q).

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The Market Value Adjustment will only apply if the withdrawal amount exceeds the free withdrawal provision or the contract is surrendered during the surrender charge period. The MVA does NOT apply upon death, settlement options, free partial withdrawals, income rider withdrawals or after the surrender charge period is over.

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Yes, if the spouse is listed as the sole primary beneficiary, they may choose to continue the policy.

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Yes, if they are spouses, they may be joint owners. It is highly recommended that the beneficiary on a jointly owned contract be listed as "surviving spouse". The distribution rules are applied upon the death of the first owner. Therefore, the entire interest in the contract would be distributed to the primary beneficiary(s) of the contract rather than the Joint Owner.

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Yes.

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Yes, our Nursing Home Waiver Rider is available at no additional cost on all deferred annuities if the owner is age 80 or younger at issue. The full Accumulation Value, with no surrender charges, is available if confinement begins in contract year 2, and exceeds 90 days. See full waiver details on the Nursing Home Waiver Rider Specimen, available on the "Forms" link (Forms 430-NHW).

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New Business -

Inforce -

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• Annuity New Business Paperwork
• 1035 Exchange or Transfers Out of EquiTrust
• Agent Replacement Questions (Section J of App)
• Amendments
• Beneficiary Changes
• Death Claims
• Delivery Receipts
• Full Surrenders
• Owner Changes
• Partial Withdrawals or RMDs
• Product Disclosures
• Reallocation/ Rebalancing Changes
• Service Request Form
• Systematic Withdrawals
• Trustee Certification Forms & Trust Documents

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A government-issued photo ID is only required for Confidence Income applications when a life contingency annuity option is selected.  It is not required for other applications except at the request of the Company.

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• Keep original app and documents for your records; do not also submit originals by mail.
• If fax is confirmed, do no resend; allow a couple days processing time.
• Other non-fax delivery processes remain in effect: E-Apps, Upload A Doc and mailed apps. (Emailed apps are not accepted)

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A government-issued photo ID is only required for Confidence Income applications when a life contingency annuity option is selected.  It is not required for other applications except at the request of the Company.

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Certainty Select

Since Certainty Select is a single premium annuity; we will wait to issue until all premiums have been received. To determine the effective date, we use a weighted average calculation. This calculation is the sum of each premium multiplied by the date received, divided by the total premium. At the end of the guarantee period, the client will have effectively been credited interest for each day that we had all payments.

Index Annuities

The client may choose 1 of these 2 options for index annuities:

• Issue the policy when the first premium arrives. When the additional premiums arrive, they will be added to the 1-Year Interest Account.
• Client submits the Authorization to Hold Issue Form (ET-2504) and the effective date will be the date the last premium is received.

Confidence Income

Since the Confidence Income is a single premium annuity, we will wait to issue until all premiums have been received. The effective date is the date the last premium is received.

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Delivery Receipts are required to be returned for the following:

• All Confidence Income Annuity policies
• All policies in these states: CA, LA, MN, NH, PA, SD, WV

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Payment amounts can be affected by:

• Annuitant's age (Life options only)
• Annuitant's gender (Life options only)
• Fixed Period election, if applicable
• State (premium taxes apply in resident states of CA, CO, ME, NV, SD, and WY)
• Qualified type (payments may vary between IRA and non-IRA qualified plans)
• Payment start date
• Payment frequency

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An Annuitant change is not allowed after issue, unless the Annuitant dies in which case a new Annuitant must be chosen.

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Name, percentage, primary or contingent, relationship, social security number/TIN, date of birth, and address will be needed for each beneficiary on the application.

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No.

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AK, AZ, CA, ID, LA, NV, NM, TX, WA, WI

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If we are aware of the existence of a spouse on the contract written in these states, we must have a spouse signature for any financial transaction, e.g., distributions and in-force financial activity. Spouse's signature is not needed for the New Business process.

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No. A notary public must never change, correct, or amend a notarial certificate at a later date. Such alterations can only be made at the time of the execution of the notarization when the principal signer is present. If a notarial certificate requires corrections, a new document with a new notarial certificate will be required for the performance of another notarial act so that the certificate can reflect the correct facts of the notarization. Please consult with an attorney for legal advice.

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Yes, an individual applicant may simultaneously purchase up to four contracts/policies without EquiTrust approval.   

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No.

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• Regular or Overnight Mail
• E-App (FireLight) – new business applications only
• Upload A Doc (available on Agent Gateway website)
• Fax 
• Email – corrections to paperwork for pending cases, completed inforce service forms, status inquiries

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EquiTrust has always been committed to providing quality products through appropriate sales. Our current needs analysis program has been an industry leader in seeking to match products sold with client needs. We continually endeavor to improve and strengthen these efforts.

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Unfortunately  the business will not be accepted if questions are not answered.

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Yes - a completed form is required with each application.

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Please refer to the Annuity Suitability Agent User Guide, page 4, Internal Suitability Review Guidelines for this information.

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A decline letter will be sent to the client via USPS mail.

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No - in many cases we will have already been in touch with the agent and the client to discuss any questions or concerns and only after careful review would a decline take place.

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EquiTrust will not accept an application if you are replacing an annuity product with an effective date of less than three years.

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No, this is an optional rider that must be elected at issue of the Contract.  It cannot be added to the Contract once it is in-force.  

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Yes.  The contract must be Non-Qualified.  Also, the joint owners must be spouses and they must be named as joint annuitants. 

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The owner of the annuity must be age 40 or over to elect the Income Benefit Rider. Eligible issue ages for all owners and annuitants by product are:

• MarketPower Bonus Index:    40-75
• MarketTen Bonus Index:        40-80
• MarketValue Index:                40-80
• MarketSeven Index:               40-85

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Income Withdrawals are guaranteed amounts that may be withdrawn from the Contract for the life of the Owner(s), even if the Accumulation Value is depleted to zero. Income Withdrawals allow for a guaranteed stream of income for life without annuitizing. While taking Income Withdrawals, the Owner continues to maintain all of the benefits of the underlying deferred annuity. Income Withdrawals are not subject to Surrender Charge or Market Value Adjustment.

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There is a charge for the Rider, applied as a percentage to the Accumulation Value on each Contract anniversary, after Interest and Index Credits are applied. The charge (as a percentage is fixed) for the life of the Rider and will not change. The charge is deducted proportionately from each crediting account. The charge is not deducted from the Benefit Base or the Minimum Guaranteed Contract value. In the event that the Rider is terminated and the Contract continues, the charge will be deducted proportionately to the amount of time elapsed between Contract anniversary and Rider termination.

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Income Withdrawals can start anytime after the first contract year, as long as the Owner (and any Joint Owner) is at least age 50.

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The initial Income Withdrawal Amount is equal to the Benefit Base, multiplied by the Income Withdrawal Percentage. Each of these terms is defined below.

Benefit Base – This is a calculated value (not available for surrender, death on annuitization) that grows separately from the Contract values and is used solely for determining the Income Withdrawal Amount. It is equal to Premiums, plus any applicable bonus, less withdrawals, increased each contract anniversary by the rollup percentage and grows for a number of years. The duration and percentage of the rollup vary by product (check Agent Guide for details).
*The MarketValue Index offers a stacked rollup design where the index credited rates are added to the rollup percentage as well.

Income Withdrawal Percentage – A preset percentage that is based on the Owner’s age at the time they elect to begin Income Withdrawals.
Single Owner: Can elect to take Income Withdrawals based on either a single life or joint life (if spouse is sole primary beneficiary)
Joint Owners: Can elect to take Income Withdrawals based on a single or joint life
1. Clients select Joint Life- calculation is based on the younger of the two Owners
2. Clients select Single Life –
a. Choose Primary if they want the income withdrawal based on the life of the Primary Owner (OWN)
b. Choose Secondary if they want the income withdrawal based on the life of the Secondary Owner (SOW)

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Income Withdrawals may be taken monthly, quarterly, semi-annually or annually. Any mode other than annual must be taken EFT. Income Withdrawals will continue for the life of the Owner(s), even if the Accumulation Value is depleted.

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Yes, once Income Withdrawals begin, the annual penalty-free withdrawal amount is the greater of 10% of the Accumulation Value, or the Income Withdrawal Amount.

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Yes, after Income Withdrawals begin, the Owner can withdraw more than the Income Withdrawal Amount. Any amount withdrawn over the Income Withdrawal Amount is considered an Excess Withdrawal. Excess Withdrawals may be subject to Surrender Charges and Market Value Adjustment, if they exceed the free partial provision of the Contract. Excess Withdrawals reduce the Benefit Base and future Income Withdrawal Amounts proportionately to the decrease in the Accumulation Value. Excess Withdrawals are not allowed if the Accumulation Value is zero. Required Minimum Distributions are not considered Excess Withdrawals.

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At the time Income Withdrawals begin, the Benefit Base is compared to the Accumulation Value. If the Accumulation Value is higher, the Benefit Base is set equal to the Accumulation value and this is the amount used to determine the initial Income Withdrawal Amount.

On each Contract anniversary after Income Withdrawals begin, the Benefit Base is compared to the Accumulation Value. If the Accumulation Value is higher, the Benefit Base is set equal to the Accumulation Value. Subsequent Income Withdrawals can increase if at any time the Benefit Base becomes higher than the original Benefit Base at the time Income Withdrawals began.

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Income Withdrawal Amounts can decrease from year to year if Excess Withdrawals are taken. Excess Withdrawals reduce the amount of future Income Withdrawals proportionately to the decrease in the Accumulation Value.

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Yes, the Owner(s) may elect to stop and restart Income Withdrawals. While Income Withdrawals are stopped, partial withdrawals in excess of the Income Withdrawal Amount will be considered Excess Withdrawals and will reduce future Income Withdrawal Amounts, in the event that the Owner(s) decides to restart Income Withdrawals. If Income Withdrawals are restarted, the Income Withdrawal Amount will be equal to the greater of the prior Income Withdrawal Amount adjusted for Excess Withdrawals, or the current Benefit Base multiplied by the original Income Withdrawal Percentage.

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The Benefit Base is increased by any additional premiums along with any applicable bonuses at the time the premium is received.  The roll-up is credited to this higher amount going forward.  Additional premium may not be added to the contract after income withdrawals begin.

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On the contract Maturity Date, if the Owner(s) elects a Life Only payout option, the annual annuitization payment will never be less than the annual Income Withdrawal Amount. If any other payout option is elected, the annuitization payment will be equal to that available under the Contract.

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Upon death of the first Owner, the Rider terminates unless the surviving spouse elects Spousal Continuation, and is the sole beneficiary or the Joint Owner.

If Income Withdrawals have not started, the surviving spouse can start Income Withdrawals as early as the second contract year, as long as they are age 50. The Income Withdrawal Amount will be based on the current Benefit Base and the Single Life Income Withdrawal Percentage using the spouse's attained age.

If Income Withdrawals have already started and the surviving spouse is less than age 50, the Rider will automatically terminate and Income Withdrawals will cease. If Income Withdrawals have already started and were based on joint owners, they will continue at the same amount until the death of the surviving spouse.

If Income Withdrawals have already started and were based on single owners, the Income Withdrawal Amount will be recalculated as the current Benefit Base multiplied by the Single Life Income Withdrawal Percentage using the spouse's attained age.

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Yes, anytime after the first contract year, the Owner may terminate the Rider. The Rider automatically terminates in the following situations:

• Death of first contract Owner, unless spousal continuation is elected
• Full Surrender
• Annuitizations
• Contract is Stretched
• Excess Withdrawals that reduce the Accumulation Value to zero
• Owner or Annuitant change, with some exceptions
• If owner is non-natural and ownership is changed to another non-natural owner
• If owner is non-natural and the owner is changed to the annuitant
• If owner is the annuitant and ownership is changed to a non-natural owner

Once the Rider is terminated it cannot be restarted.

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Yes, refer to the Types of Withdrawals below:

Partial Withdrawal/RMD taken prior to Income Period

• Reduction to the Accumulation Value is the dollar amount of the withdrawal
• Reduction to the Benefit Base is in proportion to the reduction in Accumulation Value
• Reduction to the future Income Withdrawal amounts is not applicable

Income Withdrawal

• Reduction to the Accumulation Value is the dollar amount of the withdrawal
• Reduction to the Benefit Base is the dollar amount of the withdrawal
• Reduction to the future Income Withdrawal amounts is not applicable

Excess Withdrawal

• Reduction to the Accumulation Value is the dollar amount of the withdrawal
• Reduction to the Benefit Base is in proportion to the reduction in Accumulation Value
• Reduction to the future Income Withdrawal amounts is in proportion to the reduction in Accumulation Value

RMD Withdrawal in Income Period

• Reduction to the Accumulation Value is the Dollar amount of the withdrawal
• Reduction to the Benefit Base is the Dollar amount of the withdrawal
• Reduction to the future Income Withdrawal amounts is not applicable

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In general, taxation of Income Withdrawals is similar to taxation of other partial withdrawals from the Contract. You should consult your tax advisor for specific tax advice. Income Withdrawals prior to age 59-1/2 may be subject to early withdrawal penalty. In states that recognize Civil Unions, the intention is to provide the same benefits as provided to spouses, however there may be adverse tax consequences as civil unions are not recognized on a federal level.

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Yes, EquiTrust allows a joint payout election for IRA money if the spouse is the primary beneficiary.

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The rollup is the annual percentage increase on the Benefit Base. The percentage and duration of the rollup varies by product.

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MarketValue Index and MarketSeven Index offer a Benefit Base Bonus, which is applied to the Benefit Base ONLY. The MarketTen Bonus Index and MarketPower Index offer a Premium Bonus that would be applied to BOTH the Accumulation Value and the Benefit Base.

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Yes, EquiTrust accepts both Inherited and Stretch IRA business. The SECURE Act, passed by Congress and effective 1/1/20 revised Inherited/Stretch IRA requirements when the beneficiary is not an “Eligible Designated Beneficiary.” As a result, EquiTrust has rules/procedures in place to accept this money.

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An inherited/stretch IRA is an estate planning strategy for a beneficiary to take advantage of the tax deferred status of an IRA.  The beneficiary is required to take distributions from the IRA either through RMDs or at the end of a 10 year period of time. 

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No, the terms “Inherited” and “Stretch” are used by EquiTrust to differentiate between Eligible Designated Beneficiaries (Stretch) and Ineligible Designated Beneficiaries (Inherited).

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Yes, after the passing of the SECURE Act, there are now two types of beneficiaries.  Eligible Designated Beneficiaries and Ineligible Designated Beneficiaries.  See EquiTrust Inherited/Stretch IRA Rules piece for all the details.  ET-INHRSTRCHIRARULES

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No, pre-SECURE Act rules apply to IRA beneficiaries

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EquiTrust deems a contract to be a Stretch IRA if the death of the original IRA owner or beneficiary occurred BEFORE the 1/1/2020 effective date of the SECURE Act.  AFTER implementation of the SECURE Act, EquiTrust deems a contract to be a “Stretch IRA” for an Eligible Designated Beneficiary – and an “Inherited IRA” for an Ineligible Designated Beneficiary.

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1. Spouse

2. Disabled Persons

3. Chronically Ill

4. Beneficiary not more than 10 years younger than IRA owner (including a beneficiary older than IRA owner)

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Anyone who does not meet one of the four categories of an Eligible Designated Beneficiary.

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Yes, RMDs are required based on the single life expectancy of the beneficiary.

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Eligible Beneficiary (Stretch IRA) – All EquiTrust Deferred Annuities can be sold. Confidence Income Annuity (SPIA) is the only EquiTrust product not available.

     Ineligible Beneficiaries (Inherited IRAs) – All EquiTrust products except Confidence Income Annuity are available.

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RMDs are required to continue if the Original IRA owner had reached the age that distributions are required.

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Yes.

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The Owner field must provide three elements: the applicant’s name, the original Owner’s name and the date of death.  Example:  Jimmy Doe, Bene of John Doe, deceased 5/7/17.

The Annuitant field must be the current beneficiary’s name. 

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If the deceased individual was of RMD age, then the RMD must be taken in the year of death, based on the life expectancy of the deceased.  If the deceased was not of RMD age then no RMD is taken in the year of the death.  The beneficiary’s first RMD must be taken in the year following the IRA owner’s death.

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No.

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A spouse may choose a Stretch IRA instead of a Spousal IRA/continuation because all distributions from a Stretch IRA will be considered death claim distributions for tax purposes. 

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Yes. The current carrier must send the funds to EquiTrust titled as a Stretch or Inherited IRA. For example, the existing contract must be titled as, “John Doe, Deceased FBO Jimmy Doe, Beneficiary.”

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Yes.

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No, EquiTrust will not accept Inherited/Stretch IRA money where the beneficiary is a Trust.

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EquiTrust does not consider an Inherited/Stretch IRA transfer involving a non-spouse to be a replacement if the money is being transferred to EquiTrust at the time the death claim is being settled at the other company. However, if a spouse is setting up a Stretch IRA, it would be considered a replacement. Or if the Inherited/Stretch IRA owner, spouse or non-spouse previously submitted the death claim and after a period of time choose to move this money, EquiTrust will consider this a replacement.

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No.

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Multiple Inherited IRA contracts can be combined as long as the decedent is the same person on each inherited IRA contract. Inherited IRAs with different IRA owners cannot be combined.

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Download a sample form.

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Yes as long as all deaths occurred prior to the passing of the SECURE Act.

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No.

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No.

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Not at this time.

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EquiTrust will send notification to the client and agent 6 months before the end of the 10 year period.

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No.

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Yes, a beneficiary who is older than the deceased owner is considered an Eligible Designated Beneficiary because the beneficiary is not more than 10 years younger than the deceased. In such cases, EquiTrust guidelines require the contracts be issued as Stretch IRAs. 

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No, EquiTrust does not accept Inherited/Stretch IRA business for minors. 

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EquiTrust does not accept this business because – per the SECURE Act – minor beneficiaries begin as eligible designated beneficiaries and at the age of majority become ineligible designated beneficiaries.  This would require EquiTrust to track each minor beneficiary’s age-transition details and change the distribution requirements accordingly. 

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ImagiSoft is a company that develops life insurance and annuity illustration software for carriers. They have been in business since 1982.

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Time prepared will always be in Mountain Time, which is the time zone in which our illustration servers reside.

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You can navigate non-destructively through the client and illustration information. The dividing line is the "Storage" tab. Once you move back to it (or further back to the "Agent" tab), you cannot step forward without the system reading the database and re-loading all defaults accordingly, i.e. it will ask for information on a new client and new illustration information. It is important for users to click the Store button on the Preview tab to have their work written to the database.

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These accounts cannot be illustrated in Iowa and Rhode Island, however the strategy is available in these states.

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There are 3 options:

1. Click Next from Storage tab to start a brand new illustration (add new client, all inputs).
2. Click New Illustration from Stored Illustration tab. If no client exists in storage, you will be starting from scratch. If a client exists in storage and you have them highlighted, the client tab will be populated with their information, but the remainder of the illustration inputs will be blank.
3. Client New Client from Stored Illustration tab. This will function like #1. All input screens will be blank.

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For the S&P accounts, the best and worst 10-year periods are based on absolute S&P performance, not the particular crediting method performance. All carriers with an index based on the S&P 500 will be using the same 10-year periods, regardless of crediting methods. This can result in periods where the "worst" years will outperform the "best" years, once crediting methods such as averaging, caps or participation rates are applied. The most recent 10-year period might outperform the best period, or be the worst when looking at a particular crediting method. The 10-year periods will be recalculated each calendar year on January 1st.

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RMDs cannot start before 72, but you can choose any age on the withdrawal tab. The calculations are correct and $0's will appear until age 72.

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At this time, the illustration software only allows additional premiums to be illustrated on an annual basis.

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At this time, the illustration software only allows withdrawals to be illustrated annually.

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The age shown in the tabular detail is the end-of-year age. For example, the year 1 age for a 60-year old owner will show 61. Withdrawals that start at age 70 will show up in the illustration on the row with age 71.

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You may need to disable your pop-up blockers.

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Yes. You can store illustrations. They will be saved by client on the Storage tab and tied to your agent number.

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Yes, the software is mobile friendly and can be run on your phone, your iPad, or any other smart device. You must have access to the internet from your device and enter through the EquiTrust Agent Website.

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On the Client tab, make sure to enter the issue state of the contract.

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Yes, any state variations are included with the illustration based on the issue state entered on the Client tab.

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Yes, on Qualified contracts, you can illustrate RMDs prior to starting income withdrawals.

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At this time, you cannot illustrate interest withdrawals. You can illustrate income withdrawals, RMDs, penalty free withdrawals, or a specified dollar amount.

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Google's Chrome browser is preferred for the following reasons:

• It has one, multiple-use input bar for both searches and entering websites
• It takes less memory
• It has a built-in PDF viewer - no need to download Adobe Acrobat
• Less likely to crash because each page is in its own memory space
• It is faster than most other browsers because of its efficient use of memory
• It uses most of its space for the web page, not extra buttons and menus
• It has dozens of useful, optional plug-ins, such as Ad Blocker
• It has multiple tabs for multiple websites in one browser
• It remembers the pages you use most often and builds a customized home page
• Make sure pop-up blocker is disabled. Follow the steps below to disable:
  • If the user has a pop-up blocker icon in their Address Bar, then a Pop-up Block happened
  • To Resolve, click on the icon and choose ‘Always allow pop-ups and redirects from https://imagisoft.com’

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Yes. Under Settings, make sure to turn off "Block Pop Ups" in Safari.

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It’s the ability for an annuity Owner to convert:

• Traditional, SEP or SIMPLE IRA to Roth IRA: The Owner can systematically convert a fully taxable IRA contact into a non-taxable Roth IRA over time. That means they have more control over when they pay taxes — they can pay lesser taxes on the partial conversion amounts vs. paying income taxes when they use the money for retirement income.
• • Inherited IRA to Non-Qualified contract: The Owner can convert a fully taxable Inherited IRA contract into a tax-deferred Non-Qualified contract over time. Only the future gain will be taxed upon distribution.

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PTC is available on any Qualified, inforce EquiTrust deferred annuity.

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Yes, an Inherited IRA contract can be converted to a Non-Qualified contract.

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No. For more information or to see how Stretch IRAs differ from Inherited IRAs, visit Agents.EquiTrust.com to refer to the Inherited/Stretch IRA Rules flier (ET-INHRSTRCHRULES) under Forms/Forms & Supplies.

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Flexibility is an important component of the PTC program. The annuity Owner can determine when and how much money they want to convert, subject to no more than one partial conversion per contract year. They can also set up the conversion on an annual systematic schedule, with the ability to stop and start as desired. The date can be selected by the Owner. To summarize, conversions can be structured as:

• One-time partial conversion
• Systematic partial conversion of a specified dollar amount
• Systematic conversion over a number of years as determined by the client

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The new contract mirrors the original contract, except for the tax qualification, with the same:

• Effective date
• Client roles
• Agent
• Account allocations
• Credited rates
• Riders

After conversion, all contractual provisions are available independently on the two contracts. That includes beneficiaries, transfers, withdrawals, additional premiums, etc. The mirrored contract is not considered a replacement.

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If they want to continue the systematic withdrawals on both contracts, the client will need to submit a new systematic withdrawal form for their mirrored contract.

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Yes, conversions may continue after a client begins IBR payments. The IBR payments are taken pro rata or proportionately from each contract. Payments will remain the same unless the client has elected for withholding to be done on the conversion amount. This will reduce the Benefit Base and the IBR payments each year of the conversion that withholding is processed.

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No. There will be a maximum of two contracts active at any time — the original contract (Qualified) and the mirrored contract (Roth/Non-Qualified). The converted money moves from one contract to the other.

Values are removed proportionately from the original contract to the mirrored contract based on the gross amount of the conversion. This includes minimum guaranteed contract value, free remaining/free used and benefit base, if applicable. When the value of the original contract is depleted, the original contract will be closed.

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The partial tax withdrawal will generate tax reporting:

• 1099 — IRA distribution
  
  • PTC transaction captured
  • Shows the amount of taxes withheld, if applicable

• 5498 — For Roth portion
  • Shows the actual amount moving into the Roth contract after taxes are withheld

Once the entire amount of the original contract is converted to the Roth IRA, the Owner is required to wait five years and until age 59½ before distributions are tax-free. Distributions are reportable, but not taxable, assuming all IRS rules have been met.

EquiTrust will do the tax withholding at the time of conversion, generating the Form 1099R for your client – including any withholding they request.

Note: If tax withholding is requested on a conversion in the first 5 contract years, the conversion must be done over 3 years or more.

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No. The Owner will receive a letter confirming the conversion. The new contract number will be included in the letter.

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There will be two statements; one for the original contract and one for the Roth/Non-Qualified contract.

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For many types of retirement accounts, Owners are required to start taking Required Minimum Distributions (RMDs) in retirement. Living Owners of Roth IRAs, however, are not subject to RMDs (though rules are different for heirs). Money can be left in a Roth IRA without the Owner incurring an IRS penalty. That’s why converting some or all of a traditional IRA into a Roth IRA before their RMD Required Beginning Date can be a good option for suitable clients.

Tax bracket is also a consideration. Paying taxes now on partial conversion amounts — while the Owner may be in a lower tax bracket — may offer tax advantages. There is a possibility that income tax rates could increase in the future, making a PTC over time a good option for many clients.

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No, there are no commissions or bonuses paid on the converted amount that is moved to the mirrored contract.

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Trails will be paid from both the original contract and the mirrored contract based on the account values of each.

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Visit Agents.EquiTrust.com to find the Annuity Tax Conversion Form (ET-CONVERSION) under Forms & Supplies/Forms.

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Low-volatility US stocks and US Treasury indices

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The index was launched on May 31, 2019. However the underlying components of the index have been in existence for many years, allowing back tested historical results to 2003.

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Historical information and current index allocations are available at the index-sponsored website: Indices.Barclays/Focus50, ticker: BXIIF50E

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The index is available currently on all index annuities.

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Yes, contact EquiTrust Sales Support for current index weightings. Weekly updates are available. Call 866-598-3694, or email [email protected]

A:

The Focus50 Index seeks growth opportunities while limiting volatility through exposure to a dynamic combination of U.S. stocks and U.S. Treasury Indices. Low Volatility U.S. stocks are used because, historically, they have tended to outperform other, higher volatility stocks, on a risk-adjusted basis. The addition of Treasuries adds a diversification benefit and a potential reduction in risk. To further control risk, the index aims to limit its annual volatility to a 5% target using a process called volatility control.

A:

Each month the Index follows a systemic process to select up to 50 stocks as its new constituents. The broad universe consist of all stocks listed on the New York Stock Exchange and NASDAQ issued by companies headquartered in the United States. The Index then filters out stocks that do not meet defined size and liquidity thresholds.

The remaining eligible stocks are then ranked based on 1-year historical volatility, and the process selects the 50 stocks with the lowest volatility, subject to the requirement of including no more than 10 stocks from any single industry sector. This limitation is designed to prevent over-concentration in any given industry sector.

Upon the completion of the next Index rebalancing, the 50 newly selected stocks, weighted equally, will represent the Index constituents for the following month. The entire process is repeated each month to construct a dynamic stock portfolio that is reconstituted and rebalanced on a monthly basis.

A:

Exposure to bonds is represented by an equally weighted basket of four indices which track US Treasury 2, 5, 10, and 30-year futures. The allocation between the 50 stocks and bond indices is determined by recent risk and return components of each, as well as their correlation to each other, to formulate a percentage allocation that will provide the greatest return potential for the specified risk level.

The portion allocated to bonds may be further refined to minimize the impact of rising interest rates. If trends indicate rising rates, half of the bond allocation is directed to the two best-performing of the four Treasury indices, while the other half is allocated to cash.

A:

As an additional level of risk management, the Focus50 Index manages the exposure weightings of the index portfolio with the objective of a constant annualized volatility of 5%.

A:

5%. If the index portfolio volatility exceeds 5%, the Index will allocate less than 100% to the index portfolio, leaving the residual portion in cash. Conversely, if the index portfolio volatility is below 5%, the exposure to the index portfolio may exceed 100%, up to a maximum exposure of 150%. Volatility control is accomplished by shifting to an allocation with lower volatility.

A:

Premium may be allocated among any of the indices offered within the contract.

A:

Barclays Bank PLC ("BBPLC") is the administrator of the quantitative investment strategy ("QIS") indices. The Barclays Quantitative Investment Strategies are a diverse family of systematic non-discretionary trading strategy indices available across multiple asset classes including equities, fixed income, FX, commodities, derivatives and alternative investments.

No single index or crediting strategy can consistently achieve above average performance in all market conditions. During periods of market declines, index credits may be zero - but will never result in a loss of credits already added to your contract.

A:

S&P500 stocks, gold futures and US Treasury futures

A:

The index was launched on March 27, 2017. However the underlying components of the index have been in existence for many years, allowing longer back tested historical results.

A:

Historical information and current index allocations are available at the index-sponsored website: SPIndices.com, ticker: SPMARC5P

A:

The index is available currently on all six index annuities. 

A:

No

A:

The Index is a diversified and dynamic multi-asset strategy to manage market volatility. It seeks to maximize potential returns while keeping risk in check. It uses a simple risk-weighting framework to provide exposure to more than just equities, with potential allocations to equities, gold and fixed income. Large-cap stocks, historically, have provided strong potential upside; gold offers a hedge against inflation; and bonds provide opportunities when interest rates fluctuate. In low-volatility environments, the Index increases exposure to riskier assets - up to a leveraged position of 150%. In high volatility environments, it moves allocations to more conservative assets, and may also use cash. It can alter its allocations daily. It is designed to deliver Asset-Class diversification, Dynamic Asset Rebalancing and Volatility Control.

A:

By adding a volatility control component to the index, returns should be more stable and less volatile. Volatility control is accomplished by shifting to an allocation with lower volatility in this case cash.

A:

The Volatility Target of 5% is used on a daily basis to narrow down the possible portfolio combinations.

A:

Premium may be allocated among any of the indices offered within the contract.

A:

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI).

No single index or crediting strategy can consistently achieve above average performance in all market conditions. During periods of market declines, index credits may be zero - but will never result in a loss of credits already added to your contract.

A:

E-Delivery is a means to deliver annuity contract documents to your clients electronically through the E-Delivery application. E-Delivery is elected by the client at the time of application with the Electronic Transactions and Disclosure form (ET-ELEDISC), included in E-App and AppBuilder.  You can elect E-Delivery with paper applications – not just E-App.

A:

E-Delivery is available for both E-App and paper applications. 

A:

E-Delivery is the quickest way to deliver annuity contracts to your clients. Mailing paperwork through the U.S. Postal Service is still an option, but mail delivery may take 7 to 10 business days for a contract to arrive by mail.

A:

E-Delivery provides your clients fast delivery of contracts that they can easily review and sign. E-Delivery provides you the assurance that your client has reviewed and signed all required documents in a timely manner.  In addition, E-Delivery:

Provides a secure, modernized and digital delivery experience

Eliminates the need to “chase” delivery requirements

Reduces time and costs associated with manual printing and mailing

Monitors delivery and receipt progress for a complete auditable trail

Decreases delivery process time from weeks to hours

A:

E-Delivery is currently not available in these states: Alabama, Arizona, California, Colorado, Florida, Iowa, Maine, Missouri, New Hampshire, Ohio, Rhode Island, Utah and West Virginia.  EquiTrust will alert you if and when E-Delivery is made available in these states.

A:

The Electronic Transactions and Disclosures Agreement form can be submitted to EquiTrust via mail, email, fax or Upload A Doc.

A:

There are two ways to revert to printed-contract delivery methods after initially electing E-Delivery. The first option is by phone with verbal consent from owner of the contract.  The second option is with a confirmation email from the owner of the contract.

A:

The form is a required form in E-App, requiring a yes or no answer. For AppBuilder, E-Delivery requires a positive affirmation to opt in prior to electronic delivery of any documents; if no box is checked, the contract will be issued in print.

A:

Contact EquiTrust to request a reissue and provide details to correct the contract. 

A:

EquiTrust includes a beneficiary form in your client’s E-Delivery contract if some of the needed beneficiary information is missing on the original application.  Your client should complete and resubmit through the signing process. The form may also be printed, completed and submitted through Upload A Doc. 

A:

Either can complete the beneficiary form, but only the client can sign it. 

A:

If E-Delivery is elected but the client’s signature is not on file, EquiTrust requires your client to have the notarized form completed and submitted before any future transactions will be processed.

A:

Depending on the actual contract details, your client must sign the Delivery Receipt and, if necessary, the Amendment or Beneficiary forms.

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The E-Delivery expires after 15 days. EquiTrust will email reminders to you every 5 days starting from the date of the initial signing.

A:

The documents will be available for client download for 15 days after completion of signing.

A:

Contact EquiTrust at 1-888-400-5759 for alternate arrangements.

A:

Either the agent or client can initiate this process. 

A:

The free-look window begins when the client receives the “Print or Download Fill and Sign” email notification that the contract has been E-Delivered.  The free-look process is no different for E-Delivered contracts. EquiTrust requires a letter of instruction signed by your client to process a free-look.    

A:

No, you will receive emails directed to you separately as agent and as client.

A:

Contact EquiTrust at 1-888-400-5759 to discuss the options for a printed contract.

A:

E-Delivery is available for all annuity products.

A:

The App is designed for mobile phone use. It can be downloaded on a tablet, but may not optimize correctly. For best results, please use the Agent App on a mobile phone device.

A:

Apple - 9.2 and above.

Android - Jelly Bean, Android 4.1, API level 16

A:

The App is for agent use only at this time. It is not supported for use by marketing organizations, clients or the general public.

A:

The phone's storage will need to be accessed to download the Agent App. Also, some EquiTrust information that is not secured (such as rates and product information) will be stored on the phone for future access without needing a Wi-Fi connection.

A:

New Business>View All: You will see last 7 days of activity

Sales Tools>Marketing Alerts: None will show prior to the date the Agent App was registered

A:

Yes, there will be future releases with additional features such as ordering supplies.

A:

No, the PIN must be the same on all devices. All devices will recognize the most recently set PIN.

A:

Check your phone settings to see if the "Zoom" feature or increased font size is selected.

A:

You will only see information on products for which you are contracted, e.g. life, annuity or both.

A:

If you have been connected to the internet, Wi-Fi or cellular service in the last 30 days you will be able to see all unsecured information (everything except commissions, new business, and active business).

A:

Only pending transfers or anticipated transfer amounts show in the dollar field. Cash with app checks do no show in the deposit screen as "anticipated amount". The agent must click on the policy notes to see checks received. (This is also how it shows on our agent website.)

A:

They remain under New Business for 7 days.

A:

A completion date will only show once you have completed each respective training.

A:

An alert is a pop-up window that stops your mobile device activity and displays the detail of the notification.

A notification is a slim pane that slides into view for a few seconds at the top of the screen, then disappears.

A badge is a little dot with a number signifying the number of waiting alerts.

A:

New alerts are sent daily at 10:00a.m. and 3:00p.m. Central Time.

A:

At this time all alerts must either be on or off.

A:

Go to: More Options>Settings. Then click, "Go to System Settings".

A:

The contract/policy is no longer pending. To view notes for an active contract, please go to Active Business.

A:

If you have 'read' the alert and do not completely close the Agent App, it will remain in your alerts until midnight Central Time.

If you close the Agent App after looking at an alert, it will be gone the next time you reopen the app.

If you do not look at an alert, it will remain posted as long as the contract is still pending or 6 months have passed - whichever comes first.

A:

If a contract was "Not Taken" or "Free Looked", it is no longer in a "Pending" status so it will not show in "New Business". If the agent is not aware of the free look, we call to inform the agent and allow the agent 5 days to conserve the contract.

Last Paid: Shows last paid commission. Does not necessarily have to be this year.

YTD: Shows what has actually been deposited into their bank account.

A:

iOS/iPhone: Make sure your Safari browser allows for pop-ups. Go to "Settings" then "Safari". Scroll down to "Block Pop-ups" and make sure the slide button is in the left/off position.

Android: The device must have a PDF viewer installed. The Android operating system does not come with a PDF viewer (i.e. Adobe Acrobat) preinstalled on the phone.

A:

Generally this has to do with your connections. Here are some troubleshooting solutions.

1. Restart the Wi-Fi connection
1. Turn Wi-Fi off and back on, try to connect
2. Try to connect to our app (register, login, etc.)
3. If that doesn't work, try solution #2.
2. Try using just cellular
1. Turn Wi-Fi off, make sure there are plenty of cellular service bars
2. Try to connect to our app (register, login, etc.)
3. If that doesn't work, try solution #3
3. Try using just Wi-Fi to connect
1. Turn cellular service off, make sure there is a good connection to Wi-Fi
2. Try to connect to our app (register, login, etc.)
3. If this still does not work, please call EquiTrust Sales Support at 866-598-3694.

A:

Annual statements, address changes, withdrawals/loans processed, and death reported.

A:

In addition to upfront commissions, Option A, EquiTrust offers two trail commission options for annuities. Option B: Upfront plus Trail and Option C: Trail Only, which will be available on the following products:

• MarketPower Bonus Index
• MarketTen Bonus Index
• MarketValue Index
• MarketSeven Index
• MarketForce Bonus Index
• MarketMax Index

A:

For annuities, the three commission options are structured as follows:

Option A is full commission paid upfront. For flexible products, half the first-year commission will be paid on any premium received years 2-5.

Option B is half of full commission paid on premium received paid upfront and trail commissions of .50% based on the contract Accumulation Value on the anniversary date paid for as long as the contract has an accumulation value and remains inforce. For flexible premium products, half the first-year commission will be paid on any premium received years 2-5.

Option C is 1% of premium received before any bonus is applied paid upfront and trail commissions of 1% of the contract Accumulation Value of the anniversary date paid for as long as the contract has an accumulation value and remains inforce. For flexible premium products, .50% will be paid of any premium received years 2-5.

Commission percentage may vary by state and agent-contract level.

A:

For life insurance, the three commission options are structured as follows:

Option A is full commission paid upfront.

Option B is half of full commission paid on premium received paid upfront and trail commissions of .50% based on the policy Accumulation Value on the anniversary date paid for as long as the policy has an accumulation value and remains inforce.

Option C is 1.25% of premium received before any bonus is applied paid upfront and trail commissions of 1.25% of the policy Accumulation Value on the anniversary date paid for as long as the policy has an accumulation value and remains inforce.

Commission percentage may vary by state and agent-contract level.

A:

The Index Annuity Commission Election form (ET-COMMELECT) or Life Insurance Commission Election Form (ETL-COMMELECT) must be completed to elect Option B or C. If no form is received or no election made, commission payment method will default to Option A. The Commission Election form is available under Forms on the agent portal and is also included in the app packet on AppBuilder and in the E-App.

A:

Yes, however all agents must elect the same commission option on a split case.

A:

Yes. The Index Annuity Commission Election form (ET-COMMELECT) or the Life Insurance Commission Election form (ETL-COMMELECT) must be completed for each sale to elect a trail option. If the form is not received, commission payout method will default to Option A-Upfront commission.

A:

The commission option can be changed if the contract/policy is still pending. Once a contract/policy is issued, the commission option cannot be changed.

A:

Yes. Trail commissions will continue to be paid to the writing agent when the servicing agent is changed.

A:

Trail commissions will be charged back in the same manner as the normal commission chargeback based on when it is taking place and what the chargeback provision is for the product sold.

A:

At this time, assignment of commission is not allowed.

A:

Your trail commission options will remain the same.

A:

Your 1099 should reflect commissions paid to you in that year.

A:

In most cases, EquiTrust will pay trail commissions to terminated agents as long as they have not been terminated for cause.

A:

Upon the death of the agent, the remaining commission will be paid to the designated beneficiary. If there is no designated beneficiary, the remaining commission will be paid to the agent's estate. The remaining amount will be equal to the difference between the Option A commission amount and amount of trail commissions paid to date. If the commission paid to date is greater than the Option A commission, the amount paid to the beneficiary is zero.

To designate a beneficiary for trail commissions, complete the Agent Beneficiary Designation form (ET-AGTBENE). Only one form should be completed and will be applicable to the agent's entire block of business.

A:

A Licensed Only (LO) agent may only select trail commission Option B or C when they are licensed only to their own corporation.

A:

Upon the death of the LO agent, the remaining commission will be paid to the Corporation in a lump sum. The remaining amount will be equal to the difference between the Option A commission amount and amount of trail commissions paid to date. If the commission paid to date is greater than the Option A commission, there will be no additional amount paid to the Corporation.

A:

This step helps EquiTrust verify that you have completed required training for the product being purchased. For security purposes, this information is not retained after the application is submitted.

A:

While many of the forms are added automatically based on various application-input variables, some forms need to be selected manually to cover certain circumstances.

Forms can be selected at the beginning of the application process. If additional forms need to be added before the application is signed, you can click "Other Actions" from the top-right tool bar, then select "Manage Optional Forms."

A:

Yes. The e-signature process requires the Owner's email address to validate the client's identity. Use of an agent's email for the client's signing ceremony is not allowed.

A:

When completing an E-App where the owner is a Trust, the signature section will display "Authorized Signer" and if applicable "Authorized Signer 2".

• Authorized Signer is Trustee 1
• Authorized Signer 2, if applicable, is Trustee 2
• There may be more Signers listed, depending on the number of Trustees

A:

If owned by a minor, the custodian needs to sign on behalf of the minor. Either the Transfer Under Uniform Gift to Minors Act form (ET-2505) or Custodian paperwork is required. The signature section will display "Other Signer," this is the Donor in the UGMA/UTMA scenario.

A:

Yes. If a Power of Attorney has already been established and a Power of Attorney document is in effect, the Power of Attorney Certification form (ET-POACERT-2500) is required. 

If a Power of Attorney has not been established, one can be established for EquiTrust by completing the Power of Attorney Appointment and Indemnification Agreement form (ET-POAAPPT-2501).

A:

If a guardianship has been established, the Guardian needs sign as Guardian. Guardianship paperwork is required.

A:

The Complete Name fields (first-middle-last) need to be completed as follows:

• Example: JoAnn Jean Doe, Deceased

• Example: FBO John Mark Doe, Beneficiary

A:

From the home page, select My Preferences button.

• Default Jurisdiction allows you to set the state in which you most often do business.
• Default Product Type allows you to set your most frequently used product type.
• Default Time Zone allows you to set the timezone in which you are located.
• Page Size for My App. List allows you to set the maximum number of applications to display on the home page.
• My Full Name as it will appear on paperwork.
• My Email Address allows correspondence to be sent to the email address listed.

A:

• Open the application
• Select "Other Actions" from the top-right toolbar
• Select "Unlock Application"

A:

Any additional required documentation can be uploaded by choosing "Other Actions" in the top-right toolbar, and then choosing "Documents." A pop-up will appear for you to upload the scanned document. Be sure to change the Document Type to "Illustration".

A:

When submitting additional, hard-copy forms such as the Trustee Certification, Power of Attorney form, checks or original-signed transfer paperwork - please include the following information:

• Indication that the check/forms correspond to a submitted E-App
• Full client name
• Agent name, agent number and contact information

A:

There are two ways to review the fields which are incomplete on the application.

1. Click the "%" sign on the Form Entry tab in the upper left corner of the application. A list with Form Number, Page Number, and Specific Field will be displayed. The red items are required to move forward with the application. The orange items should be entered, if available, but are not required to move forward with the application. Click Show All to see all items. When you click on one red or orange item, you will be taken directly to that location within the application to make corrections. When ready to proceed to the next incomplete field, click the % to select other items to be completed or corrected.

Or,

1. Click on the red conversation bubble in the upper right corner of the application to show all error messages. Once clicked, red error messages will be displayed next to all required fields with incomplete or missing information. Orange messages will be displayed next to fields with missing information that should be entered, if available, but are not required to move forward with the application.

A:

Once an application is finished and submitted, it is locked for any additional editing. Therefore, no NIGO requirements or additional documents may be added to that file. NIGO requirements and additional documents should be faxed or mailed to EquiTrust. Be sure to reference the existing contract number.

A:

Yes. Whether an application is in an Unlocked or Locked status, it can be copied. This is helpful when a new application is nearly identical to an existing one. To copy an application, click on All Applications in the upper right corner of the screen, select the application you would like to copy by clicking on Copy task button. This will open a Copy Application dialog box. Click the Copy As Is button to copy the application without changes to the Jurisdiction, Product, or optional forms. Enter the Application Name and proceed with editing the application as necessary. Click the Copy with Changes button to change the Jurisdiction, Product, or optional forms on the application copy. Select the Jurisdiction, Product Type, and Product Name on the Create a New Application page. Proceed with editing the application as necessary.

A:

Yes. If you are in the middle of completing an application, save the information and then click on Home in the upper right corner. Under All Applications, will be a list of your applications. Select the one you were working on and click on the Copy task button. Click the Copy with Changes button to change the Jurisdiction, Product, or optional forms on the application copy. Select the Jurisdiction, Product Type, and Product Name on the Create a New Application page. Proceed with editing the application as necessary.

A:

When completing an electronic application there are forms that may require original signatures to be mailed into the home office to complete the application process. One or more of these forms may be included in your application packet. Please see below:

• ET-TRN/1035-4902
• Whether or not an electronic signature will be accepted on the Transfer/1035 Exchange form is up to the transfer company. Please check with the transfer company to verify if electronic signatures are accepted.

• Form number varies by state requirement
• Whether or not an electronic signature will be accepted on the Replacement form is up to the replacement company. Please check with the replacement company to verify if electronic signatures are accepted.

• ET-2513
• If the bank account being used is jointly owned by an individual not listed on the application, an original signature is required.

• ET-POAAPPT-2501
• This form requires a notarized signature and therefore an original signature is required.

• ET-POACERT-2500
• This form requires a notarized signature and therefore an original signature is required.

• ET-TRUST-2502
• This form requires a notarized signature and therefore an original signature is required.

• ET-2507
• This form requires signature from the Charitable Remainder Trust Donor and Trustee/Administrator and therefore an original signature is required.

Any form that requires an original signature can be completed electronically with the exception of the signature portion. The completed form should then be printed, signed, and notarized (if required) and mailed to our home office:

A:

No. The system allows for a signature pad to be used, but a signature pad or a touch screen device are not required to obtain electronic signatures. On the Capture Electronic Signature screen, enter the Signer Full Name and it will appear in a signature font.

A:

If Owner is not married, the Owner's Spouse verification page will need to be completed with Owner info in order to proceed to the signature section. Type "Not applicable" in the Owner's spouse signature field.

A:

At this time, E-App only allows for up to two agents to be listed on the application. If you have more than two agents to list on the application, you must print the E-App by selecting Other Actions and Display/Print PDF in the upper right corner of the screen to write in the agent names and commission percentages. Application will need to be mailed. The option to add more than two agents on an E-App is an enhancement planned for the future.

A:

The application sign state is where the client is physically located when the application is signed. Therefore, the state in which it will be physically signed must be selected. The agent must be licensed in the state where the application is signed.

Example: If a CA resident comes to IA to complete an e-application and chooses to have the application emailed to them to complete their signature but will not be signing until they are back in CA, CA paperwork must be completed and the agent must have a CA insurance license.

A:

E-applications are saved under All Activities and can be accessed for 60 days. After 60 days, they will be removed from the system for security reasons. Please save and print the application for your records.

A:

Checkmark “Owner,” fill out the needed information for that individual and then submit the request for signatures.  Then go through the same process for the “Joint Owner.”

A:

No, they cannot use the same email for both owners.  Each owner must enter a unique email address.

A:

Additional premiums received in the first contract year increase the LTC Benefit Base by the amount of premium multiplied by the Coverage Ratio. Additional premiums received after the first year increase the LTC Benefit Base dollar-for-dollar.

A:

No, we will allow the issue of one Bridge contract per contract year for a client.

A:

No, the Bridge contract is only issued to single owners.

A:

Yes, spousal continuation is available for the base annuity contract. However, the Long-Term Care Rider and Wellness Rider terminate upon the death of the original owner

A:

Bridge is a flexible premium annuity. The minimum initial premium is $50,000. There are no ongoing premium payments required, but also no limits on the number of years the client can add premium. The minimum additional premium is $2,000. The maximum annual premium in years 2 and beyond is $250,000. If the Accumulation Value is reduced to zero due to charges and the LTC Benefit Base is still in force, additional premiums will not be accepted. Additional premiums will also not be accepted if the client goes on claim. The maximum LTC coverage in the first year cannot exceed $1,000,000 (this is lowered to $250,000 if the Inflation Protection is elected). This maximum is per client and applies if a client owns multiple Bridge contracts.

A:

Commissions are paid at the year 1 commission rate for the initial premium and any additional premiums received during the first contract year. Premiums received in contract years 2 through 5 are paid at a reduced commission rate. See your commission schedule for details.

A:

There will be a dedicated microsite for Bridge that you can access prior to being contracted, after submitting contracting paperwork in good order. If you are already contracted with EquiTrust, you will not need a different contract to sell Bridge. However, you will need to do the specific EquiTrust product training for Bridge, have the appropriate licensing and complete any continuing education required by the solicitation state.

A:

No, the LTC benefits are paid on an indemnity basis and are not impacted by the actual cost of LTC services. The LTC benefits are not guaranteed to cover actual LTC costs. The LTC benefits/charges are priced into the product and are set at the time of issue. EquiTrust will maintain the same renewal rate practice on Bridge as we do on our other FIAs. Costs of options on the index accounts and the interest rate environment are factors that impact renewal rates on Bridge.

A:

Yes.

A:

A client who is not receiving assistance with activities of daily living should answer “no” to the health question that asks whether they live in a nursing home, assisted living facility, any other residential care facility, home health care or adult day care.

A:

When LTC claim payments are made, the monthly benefit amount reduces the Accumulation Value, the LTC Benefit Base and the contract’s Cost Basis dollar-for-dollar.

A:

Progress toward wellness goals is determined every two contract years, and will be evaluated by the Wellness Ally approximately 3-6 months prior to anniversary. Wellness Credits are earned every second contract anniversary. Cumulative Wellness Credits are added to the LTC Benefit Base at the time of claim. Once Wellness Credits are earned, they cannot be taken away, even if the Wellness Rider is terminated.

A:

At a minimum, every two years, but the client may contact their Wellness Ally as often as they wish.

A:

Yes, neither Assured Allies nor EquiTrust will pay costs for claims denied by the client’s health insurance company.

A:

No, a claim can occur any time after contract issue, as long as the client has been diagnosed as being chronically ill, which is defined as being unable to perform two of six Activities of Daily Living (ADLs) for at least 90 days, or severe cognitive impairment.

A:

For any questions regarding Medicaid, please advise the client to speak with their legal advisor.

A:

NAR is defined as the LTC Benefit Base less the Accumulation Value. If the Accumulation Value is higher than the LTC Benefit Base, the NAR is zero.

A:

It is applied to the entire LTC Benefit Base, and it is compounded daily.

A:

Yes, LTC benefits can be stopped and restarted. The monthly benefit amount is set at the time of initial claim. Annual recertification is required for continuation of payments. If the client no longer qualifies, benefit payments stop. In order to restart payments, a new claim must be filed.

A:

Care may be provided anywhere, but a U.S. bank account is required to receive benefit payments. A U.S. health care practitioner must provide the Plan of Care required at time of claim and for annual recertification.

A:

Yes, the 4-year vesting schedule is 20%, 40%, 60%, 80%, 100%. After four years, benefits are fully vested. The monthly benefit amount is equal to (Net Amount at Risk [NAR] x vesting % + Accumulation Value) / 60 months. Benefits are vested because the product offers “guaranteed issue” underwriting and there is no waiting period to start long-term care benefits, meaning it’s possible a client could turn on benefits immediately after purchasing Bridge.

A:

• 1% premium load – first-year premium
• $100 wellness – annually
• LTC cost of insurance – based on Net Amount at Risk (NAR) and determined by age and rate class

A:

The $100 Wellness Rider fee is deducted from the client’s Accumulation Value annually. It covers all of the benefits provided by the rider, including access to a personal Wellness Ally, member website, customized Aging Map and resources; and special offers and discounts on wellness/aging programs and services. The Wellness Rider also offers Wellness Credits that can increase the LTC benefit amount at the time of claim.

A:

The monthly LTC Rider charge is equal to the Monthly Rider Charge Percentage multiplied by the NAR and then multiplied by the Vesting Percentage. The Monthly Rider Charge Percentage varies by underwriting class and attained age. Rider charges are deducted at the beginning of each policy month, reduce Cost Basis, and reduce both the Minimum Guaranteed Contract Value and the Account Value dollar for dollar. Rider charges do not reduce the LTC Benefit Base. Charges are not discontinued at time of claim; they continue as long as the LTC Rider is active and the Accumulation Value is greater than zero.

A:

1. Do you currently live and receive care in or use, have applied to, or have been advised to reside in a nursing home, assisted living facility, any other residential care facility, home health care, or adult day care?
2. Do you currently need any assistance or supervision in performing any of the following activities of daily living: bathing, dressing, eating, walking, moving in or out of a bed or chair, toileting, and/or bowel/bladder control?
3. Do you currently use a wheelchair, motorized scooter, stair lift, Hoyer lift, or respirator?
4. Have you been diagnosed or advised by a member of the medical profession as having or been treated for any of the following conditions in the past 5 years: heart attack, bypass angioplasty, stent surgery of the heart or legs, COPD, chronic kidney failure, cancer of the bone/esophagus/liver/lung/ovary/pancreas/stomach/uterus, lymphoma, leukemia, or any metastatic cancer?
5. In the past 5 years have you received Social Security Disability Insurance benefits?

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Yes, clients who opt out of underwriting will automatically be placed in the Secure underwriting class

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Yes, the agent will receive an email with notification that the underwriting session has been completed and the underwriting class has been entered in the client’s underwriting record in the Bridge New Business application system. A link is provided for the agent to go to the system to view the underwriting class assigned.

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The underwriting decision is valid for 90 days. If an application is not submitted and funded within that time frame, the client will need to have a new underwriting assessment for a new underwriting decision.

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Currently, underwriting is offered only in English. Secure class is available for any client and does not require underwriting.

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LTC Rider Charges for this rider are excluded from gross income under section 72(e) (11) of the Internal Revenue Code. We also consider the benefits paid under this rider to be benefits payable from tax-qualified LTC insurance that generally should be excludable from gross income. TAX TREATMENT OF LONG-TERM CARE COVERAGE MAY CHANGE, AND CLIENTS SHOULD ALWAYS CONSULT AND RELY ON THE ADVICE OF A QUALIFIED TAX ADVISOR.

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Yes, insurance companies that pay long-term care insurance benefits are required by the IRS to file a Form 1099-LTC to report LTC benefits paid out each calendar year.

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No, if none of the amount reported on Form 1099-LTC is determined to be taxable income by the client’s tax advisor, it does not need to be reported on a return. However, the client should retain the Form 1099-LTC for their records. Clients should consult a tax advisor to confirm whether any or all of their LTC benefit payments need to be reported.

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LTC Rider charges and LTC benefit payments reduce the Cost Basis of the annuity. Any non-LTC benefit withdrawals are made from the gain in the annuity first on a LIFO (last-in-first-out) basis, and the gain is reported as taxable income on IRS Form 1099-R. Once the Cost Basis in the contract is fully paid out (whether due to LTC benefit payments or partial withdrawals), any subsequent withdrawals will be fully taxable.

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Yes, we accept trust-owned business for Bridge contracts.

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• Products > Annuities > Index with LTC tab >Bridge
• Forms & Supplies > E-App/E-Platform
• Forms & Supplies > AppBuilder > Bridge microsite (all Bridge applications must be completed on the Bridge microsite)

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Click or scroll to Marketing Materials, then open the drop-down menu next to Client Materials and choose your solicitation state. There will be functionality for you to share materials via email with your clients from the Bridge microsite. If you’re logged in, your own name and email address will populate in the Share Documents form. You’ll be able to include a message to the client.

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From the microsite, you’ll be linked over to Bridge New Business & Illustration System. Get there by following one of these paths:

• Top navigation > New Business & Illustrations
• Get Started Now button within the microsite banner image
• Scroll to “Ready to add Bridge to your client’s long-term care strategy” and click Get Started Now

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The calculation assumes 100% in the fixed account earning the minimum guaranteed fixed rate of 1% being credited in all years, with LTC charges. Does not include the $100/year wellness program fee deduction.

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No, not if you’re already logged in to the agent website. That single sign-on follows you through to the Bridge microsite and then to the Bridge New Business & Illustration System.

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To enter the Bridge New Business & Illustration System for their initial visit as a delegate, the master account user must first access this area using their login credentials. This step is necessary only one time, after which the delegate will have access.

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There’s no right or wrong way to get started, and it’s relatively intuitive to get to any of the processes you need. In the top right, you’ll see several choices:

• Create client
• Create illustration
• Start underwriting
• Create application

For example, you may want to start by clicking “Start Underwriting” to determine what underwriting class your client will be placed in before beginning the application process. Or, you could start with an illustration. The way you begin is up to you and may vary by client.

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Yes, from your dashboard/homepage in the Bridge New Business & Illustration System, you’ll have different areas to view, including Recent Clients, Recent Underwriting and Recent Applications, and you can set up how far back you’d like to see that information (30 days, etc.). Applications in the system are available for 90 days.

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No, you can start by clicking on Applications, Create Application and then either create a new client or choose an existing client.

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The Bridge New Business & Illustration System is only available for the Bridge product. If you enter a birth date for a client who is not yet age 55, or over age 80 there will be no product available in the Select Product section.

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No, if you select a state where Bridge is not approved, there will be no product available in the Select Product section.

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To the left of the application form, you’ll see an Application Management navigation menu, as well as a bar showing the percentage of the app completed. The side tabs link to each section that still needs to be completed on the app. You can access each section from these tabs or from clicking “Next” on the bottom right of each page of the app.

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In the Owner/Annuitant section of the app, there is a Yes/No question about military status. If clicked yes, the military leave-behind form will automatically be included in the application packet. This is an informational form only and no “sign off” is required.

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If your client is sure they want to choose the Inflation Protection, there is a checkbox in Product Selection by choosing the Optional Inflation Protection and then selecting “Yes, I would like to elect the Optional Inflation Protection.”

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Yes, but if the response is above the limit, an addendum will be created and will be included with the completed application packet.

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If your client resides in a state that is not approved for Bridge, they will not be able to go to a different state to purchase it. The application system will allow you to proceed, but the case will be declined upon “purchase across state lines” review.

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Yes, when you click Complete Application, you’ll be directed to a page listing all the information still needed. Click on the blue headers, and you’ll be sent to each page with incomplete information. The incomplete fields will be highlighted so you can easily find them.

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Yes, once you’ve completed the application with all the client’s information, you’ll see a page that shows that all required information has been gathered. Click “Next.” At this point, you will not be able to move forward until you click “Review Forms” and the client reviews the completed application. All information will have been mapped over from the wizard into a PDF file. After you’ve reviewed the completed app, leave the PDF and go back to the Bridge New Business & Illustration System. Click “Next” to begin the signing portion of the process. You can also click Home to exit the current page and review the submission status of the app.

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Clients have the option to sign by mouse/finger/stylus or with an eSignature. If they elect eSignature, they will receive an email and can sign through DocuSign. Whichever way the client signs, you will receive an email notification when it is your turn to sign. You will sign after you review the signed app.

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No, all signatures — each trustee or POA — are required. The system will automatically add POA or Trustee after these signatures on the application.

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Once the client has signed the application, it’s your turn to review the completed document. At the Complete Application Agent page, click “Review Forms – Agent.” Carefully review the entire application on your own as the Commission Election is included within the document at this stage of the process. This form is not included in the client’s application.

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After you complete the agent review of the app, you will sign the app by mouse/finger/stylus or with an eSignature. If there are multiple agents, they will all be able to sign at this point in the process. (All agent names will appear on the signature page.)

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You will receive an email notification once the application has been signed by all parties. To submit, go to the Applications section and click Edit for the client’s packet. You’ll have one more opportunity to review the signed application, and then you’ll click “Submit” on the Signature Status page to submit the business.

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The system will allow two agents to be listed on the app, after which it will automatically create an addendum to include additional agents.

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Submitted applications are stored for 90 days. After an app is submitted, you can go back in and view the completed app document via the Applications page.

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Do not start a new application in the Bridge New Business & Illustration System as this will create a new contract number. Go back to the submitted app via your dashboard. Print off and mark any corrections, then submit to:

Fax:      515-226-5105
Email:  [email protected]
Mailing address: EquiTrust Life Insurance Company, P.O. Box 14500, Des Moines, IA 50306-3500
Upload a Doc on the agent portal agents.EquiTrust.com

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No, you can start by clicking on “Create illustration,” and then either create a new client there or choose an existing client.

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As with any illustration system, you’ll need the client’s name, birth date, age (must be age 55-80 to apply for Bridge), gender and state.

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The Bridge New Business & Illustration System is only available for the Bridge product. If you enter a birth date for a client who is not yet age 55, there will be no product available in the Select Plan Type section.

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No, if you select a state where Bridge is not approved, there will be no product available in the Select Plan Type section.

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You will need to input information for Contract Details, Illustration Details and Account Allocations. Fields that are invariable will be pre-populated and static. These include Product and Tax Qualification (Bridge only accepts Non-Qualified money). Other fields are populated, but can be changed. These include Initial Premium, Underwriting Class, Coverage Ratio, the allocation of funds/index accounts (which must add up to 100%) and Inflation Protection (which defaults to “no”).

NOTE: If you’re a delegate, you can change the agent name under Contract Details to ensure the right person is listed on the output.

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In the upper right corner of the form, click on the Action drop-down and select View Illustration. You’ll have the ability to download an EquiTrust Bridge-branded illustration that includes the client’s name, agent’s name and the date prepared.

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In the Underwriting Information section of the application, you will be required to answer the question, “Do you want to answer the underwriting questions?” Your response determines next steps.

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Allies are available for the underwriting session Monday through Friday, 9:00 a.m. to 5:00 p.m. CST.

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Yes, the agent will receive an email with notification that the underwriting session has been completed and the underwriting class has been entered in the client’s underwriting record in the Bridge New Business application system. A link is provided for the agent to go to the system to view the underwriting class assigned.

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EquiTrust Life Insurance Company Rating

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A MEC is a life insurance policy with a specific tax structure due to its premium amount exceeding IRS limits. Single-premium policies, like WealthMax Bonus Life, are considered MECs because they are fully funded with one premium payment, causing the cash value to surpass IRS guidelines for tax favorable treatment. Combining money from a MEC with money from a non-MEC will make the new policy a MEC. It cannot revert back to a non-MEC policy.

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This policy is funded as a MEC, unless the policy is a 1035 exchange from a non-MEC policy. Loans and surrenders are distributed and taxed as income on the value above the premium amount paid first, and may be subject to an additional 10% federal tax penalty if made prior to age 59½. A policy lapse may be a taxable event.

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Benefits for terminal illness are income-tax-free to the policy owner. Benefits for nursing care confinement and chronic care may be taxable. The owner should seek advice from a qualified tax advisor before electing to accelerate the death benefit.

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This benefit is available automatically and at no charge. The policy owner may elect to access their death benefit in the form of monthly payments if the policy has met all three of the following conditions:

•  It has been inforce for a minimum of 15 years.
• The insured has attained age of 85.
• There have been no withdrawals, loans or ADBR payments taken.

Payments will be equal to the death benefit at the time of election, divided by 60, and will continue monthly for five years. For each payment, the death benefit is reduced dollar for dollar. All other policy values are proportionally reduced.

Once the Longevity Benefit is elected and payments begin, the Account Value continues to earn interest/index credits. Expenses will continue to be deducted.

Payments are taxable and may be stopped at any time. If the client elects to stop taking longevity payments, the rider will terminate, and the policy will continue at the adjusted values.

If the insured dies before the 60 payments have been made, the remaining death benefit is paid to the beneficiary.

This benefit may not be available in all states.

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The policy is underwritten through RightNow Underwriting, a digital underwriting process with a series of health questions. An immediate decision is provided on 100% of cases. No exams, fluids or medical records are required. The resulting underwriting decision is valid for 90 days. Click to view the Underwriting Guidelines. 

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An underwriting decision is valid for 90 days from the date of the decision. A Statement of Good Health may be submitted up to 15 days after the expiration date (105 days after underwriting). After 105 days, a new application and new underwriting will be required.

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If an underwriting decision of “declined” is received during the FireLight application & underwriting process, you and your client may complete, sign and submit the application. It will be reviewed for consideration by an underwriter upon receipt at EquiTrust. (note: Applications are not required to be submitted to EquiTrust.) For more questions on the process, contact Sales Support at 866-598-3694.

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Click to view the Underwriting Guidelines.

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No, there will be no MIB report for applicants declined in underwriting.

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Marijuana is not considered tobacco for WealthMax Bonus Life underwriting.  Non-tobacco rates apply for marijuana use.

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The Alternative values are determined using the Non-Guaranteed charges (policy expense charge, policy fee and COI rates) and the Fixed Account credited rate. Note that if the allocation of the premium is 100% in the 1-Year Fixed Interest Account, the Alternative and Non-Guaranteed values will be the same.

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The lookback for the S&P 500 is prescribed by Actuarial Guideline 49. The lookback is based on all of the 25-year periods from the past 60 years. The average of all of these values is used to determine the maximum illustrated rate. The lookback is based on a point-to-point crediting method with the current cap and a 0% floor.

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The Minimum, Maximum and Mean values are the lowest, highest and average of all the 25-year lookback values from the past 60 years.

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No, only the insured must meet the issue age requirements at the time premium is received.

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Joint ownership is allowed only if the policy is being funded by a 1035 exchange and the replacing policy has joint ownership.

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	Ownership Requirements	Beneficiary requirements
Single owner	Owner can be different than insured if owner has insurable interest	Beneficiary must match owner if different than insured
Joint owner	Allowed only if 1035 exchange (or previous policy was jointly owned)	None
Non-natural owner	Trusts only	Beneficiary must match owner

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When a trust is named as the policy owner, EquiTrust requires:

1. All owner signatures must include “Trustee” after the name
2. Trust Information and Indemnification form signed by the Trustee(s)
3. Grantor of trust must be named as the insured

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No, POAs are not allowed for a WealthMax Bonus Life proposed insured.

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The executor of the deceased owner’s estate will name a new owner to the policy.

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For each beneficiary on the application, name, percentage, primary or contingent, relationship, Social Security Number/Tax Identification Number, date of birth and address will be needed.

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Yes. Annuities outside of their surrender period may be internally transferred into WealthMax Bonus Life. However, a WealthMax Bonus Life policy may not be internally transferred into another product.

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Yes, full 1035 exchanges and Non-Qualified transfers are allowed. Partial 1035 exchanges are not accepted because the IRS requires the entire policy to be transferred and the insured to remain the same in order to qualify as 1035 exchange.

Note: If funds are not received within 90 days of underwriting approval, a Statement of Good Health will be required. Loan balances may not be transferred into the new policy.

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No. Outgoing partial 1035 exchanges are allowed only on Non-Qualified inforce annuities.

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For more information, see the Policy on Selling Across State Lines under Compliance and Suitability, Best Practices.

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AZ, CA, ID, LA, NV, NM, TX, WA, WI

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No, EquiTrust does not offer a Temporary Insurance Agreement.

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Yes, EquiTrust requires delivery receipts to be returned for all life insurance policies.

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No, age is based on the age as of the effective date of the policy. The effective date is based on the date EquiTrust receives the full single premium at the home office. Because of this, maximum age could be a factor if, for example, the client is 80 years of age. Premium must be received before the client’s 81st birthday for the policy to be issued.

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If more than one source of premium is used, the effective date of the policy will be the date the last premium is received.

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Yes, to designate the death payout, the owner will need to complete the Beneficiary Designation with Restricted Payout Form - Non-Qualified (ET-2533NQ).

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The COI, policy expense charge and policy fee are deducted monthly.

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The current declared rate is 4.75%. The loan value account credited rate is 2%, for a net loan rate of 2.75%.

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In most cases, the policy will be issued within 48 hours of receipt of funds.

Inforce Administration:

Distribution: Will be completed within 5-7 business days of receipt of all requirements.
Non-financial: Will be completed within 5-7 business days of receipt of all requirements.