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For Producer Use Only
NEWSWIRE: Update to Minimum Guaranteed Interest Rate for ChoiceFour
Minimum Guaranteed Interest Rate raised for ChoiceFour SPDA
Change also affects Minimum Guaranteed Contract Value Rate for EquiTrust FIAs and Certainty Select
Effective 1/1/2023, the Minimum Guaranteed Interest Rate for the EquiTrust ChoiceFour single premium deferred annuity (SPDA) with one-year annual reset interest rate will increase to 2.80%. The Minimum Guaranteed Contract Rate on all EquiTrust fixed and fixed index annuities (FIAS) will also change to 2.80%.
The Minimum Guaranteed Contract Rate is used to calculate the Minimum Guaranteed Contract Value.
Minimum Guaranteed Contract Value (MGCV) Premium Percentage
Certainty Select
1.00%
2.80%
87.50%
ChoiceFour
2.80%
2.80%
100.00%
MarketPower Bonus
1.00%
2.80%
87.50%
MarketTen Bonus
1.00%
2.80%
100.00%
MarketValue
1.00%
2.80%
87.50%
MarketSeven
1.00%
2.80%
87.50%
MarketForce Bonus
1.00%
2.80%
87.50%
MarketMax
1.00%
2.80%
87.50%
Bridge
1.00%
2.80%
87.50%
Contracts carry minimum guaranteed rates at two levels:
The Minimum Guaranteed Interest Rate (MGIR) represents the minimum annual credited rate that can be declared on Certainty Select, ChoiceFour and the Fixed Account on the FIAs. The renewal rate on each of these products/accounts can never be less than the MGIR.
The Minimum Guaranteed Contract Rate (MGCR) is the rate associated with the minimum cash value floor, which is often referred to as the Minimum Guaranteed Contract Value (MGCV) or the Standard Nonforfeiture Law (SNFL) floor. If a client surrenders their contract, the surrender value can never be less than this amount.
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Questions about the Minimum Guaranteed Rate? Give us a call at (866) 598-3694.
EquiTrust does not offer investment advice to any individual and this material should not be construed as investment advice. Products underwritten and issued by EquiTrust Life Insurance Company, West Des Moines, Iowa. Products distributed by EquiTrust Insurance Marketing Services; in California doing business as EQT Insurance Marketing Services.