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Sales Tip: Why a Risk-Controlled Index?


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Sales Tip

Why a Risk-Controlled Index?


Add diversification, reduce volatility, and increase potential for more consistent index credits



The S&P 500 Index® is well understood; consumers know what it is and how it works, and the performance of the S&P 500 Index is widely reported in the financial press. 


But, should index-annuity buyers go all-in on a single, stock-market index?


EquiTrust index annuities and life-insurance products offer index alternatives: risk-controlled indices.  Instead of consisting entirely of stocks, a risk-controlled index is only partially made up of stocks. A portion of the index typically consists of cash, which has zero volatility. During times that stock volatility is high, a risk-controlled index adjusts its mix of assets to use more cash and less stock. This lowers volatility back to the desired range and serves to keep option costs within a desired range.


Also, a risk-controlled index may bundle a more diversified collection of assets than just stocks, and do it in a way that makes the index unique in the marketplace.


Learn how index accounts linked to a risk-controlled index adds diversification, reduces volatility, and may achieve more consistent index credits.


Barclays Focus50 Index client flyer


S&P MARC 5% Excess Return Index client flyer


Historical Look at Diversification – MarketPower Bonus Index


Historical Look at Diversification – MarketTen Bonus Index


Historical Look at Diversification – MarketValue Index


Historical Look at Diversification – MarketSeven Index


Questions? Call Sales Support
866-598-3694 or visit
the Agent Website at


*Partial withdrawals may have a surrender charge or market value adjustment, which could result in receiving less than the full premium.

EquiTrust does not offer investment advice to any individual or agent 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.

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7100 Westown Pkwy Suite 200
West Des Moines, IA 50266

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