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SETTING THE SPLIT ANNUITY STRATEGY INTO MOTION

Two annuities in one strategy = reliable, regular retirement income

Have clients who need income now, but also want to ensure they have the income they need for the future? The split annuity strategy¹ might be the ticket.

How does the split annuity strategy work?

• Your client determines their desired income duration and purchases an immediate and a deferred annuity.

• Based on the duration selected and current rates, the split between the annuities is determined for you.

• The immediate annuity provides regular income payments immediately for a designated time period.

• The deferred annuity grows back to the original premium amount, securing income for the future.

The power of two

This tiered approach can help your clients reap the benefits of two EquiTrust fixed annuities:

• Confidence Income, a single-premium immediate annuity with a fixed period, single life and joint payment options

• Certainty Select, a single-premium deferred annuity featuring multi-year rate guarantee periods of 3, 5, 6, 8 and 10 years

What are the advantages of a split annuity strategy?

• Immediate guaranteed² income over an income period
• Tax-deferred growth³
• Income from the SPIA (with Non-qualified money) may have an exclusion ratio that could reduce taxable income for the year vs. taking interest withdrawals from the MYGA

• Preservation of principal
• Potential to avoid 10% IRS penalty tax for early distributions

Competitive commissions

Current street-level commission (MGA) is very competitive at 3% on both Confidence Income and the five-year Certainty Select annuities. That makes the split annuity strategy a win-win for you and your clients. Get all our commission schedules on the Agent Gateway under Agent Administration.

Have a client who might benefit from a split annuity strategy? Want to run an illustration? Call us at (866) 598-3694.

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

¹ Multiple annuity contracts issued by the same insurance company to the same policyholder during the calendar year may be treated as one annuity product for tax purposes.

² Guarantees are based on the claims-paying ability of EquiTrust Life Insurance Company. Product not available in all states.  

³ Assuming no withdrawals or surrenders. A split annuity may not be appropriate for qualified assets, which are already tax deferred.

EquiTrust does not offer investment advice to any individual or agent/producer and this material should not be construed as investment advice. Products underwritten and issued by EquiTrust Life Insurance Company, West Des Moines, Iowa. 

Product features may vary by state. Rates subject to change.

Surrender of the Certainty Select contract may be subject to surrender charge and market value adjustment; withdrawals before age 59½ may result in a 10 percent IRS penalty tax. 

Neither the Company nor its producers can provide tax or legal advice. Please consult your tax advisor or attorney on such matters. 

IRAs/qualified plans are already tax-deferred; consider other annuity features.

Contract issued on Contract Form Series ET-MYG-2000(11-05) with Optional Rider ET-CTR(11-05), ET-MYG-2000(06-09) with Optional Rider ET-CTR(06-09), 430-SPA(08-03) and ET-SPIA(08-06). Group Contracts issued on Form Series ET-MYG-2000C(06-09) with Optional Rider ET-CTR(06-09) and ET-SPIAC(08-06).

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