Sales Week: A premium bonus offers a retirement income head-start

BONUS ANNUITIES CAN HELP YOUR CLIENTS HIT THE GROUND RUNNING

With a premium bonus, clients earn more right away

One way to help clients jumpstart a retirement income strategy is to offer up a fixed index annuity (FIA) with a premium bonus.

What’s a bonus FIA?

EquiTrust’s bonus FIAs apply a percentage bonus to premium payments immediately. That amount becomes a permanent part of the annuity’s Accumulation Value. Interest and index credits are earned on the premium and the bonus.

EquiTrust offers three FIAs that include a bonus:

MarketPower Bonus Index^® — 10% bonus on premiums paid during the first contract year

MarketTen Bonus Index^® — 6% bonus on premiums paid during the first five contract years

MarketForce Bonus Index^® — 8% bonus on premiums paid during the first contract year; this product is also a rate buy-up annuity

A bonus FIA can help your clients get a head-start on the annuity’s Accumulation Value, boost lifetime income payments and keep the bonus if the annuity is surrendered. Plus, 100% of the premium bonus is included in the annuity’s death benefit.

When does a premium bonus make sense?

Depending on the situation, a bonus FIA may be a good fit for a particular client. In other circumstances, a non-bonus annuity is a better option. For example, while rates may be higher¹ on a non-bonus product, a premium bonus does offer strategic advantages in a variety of scenarios. Let's take a look at when each type of product typically makes sense.

A bonus product may make sense when

A non-bonus product may make sense when

The need for free withdrawals in the early contract years is high (for example, to use as a bridge to Social Security benefits)

There’s a need to offset low market performance or a low interest rate environment

Recovering from an underperforming product

Filling a retirement savings gap

The client wants longer-term accumulation

Other financial resources are available to cover unexpected liquidity needs

There’s an expectation of moderate to higher index performance

See a bonus vs. non-bonus growth comparison.

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Want to talk through a particular case to see if a bonus or non-bonus product is a good fit? Call us at (866) 598-3694.

866.598.3694 • [email protected] • Agents.EquiTrust.com.

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¹ Bonus fixed index annuities generally have lower rates than non-bonus FIAs, and therefore, lower long-term earning potential.

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.

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EquiTrust

7100 Westown Pkwy Suite 200
West Des Moines, IA 50266