SALES WEEK: The Case for Index Strategy Diversification
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The Key to Consistent
Index Annuity Performance –
Client-Use Flyers Explain the
Importance of Index-Strategy
Diversification…in Full Color
Index annuities offer a variety of index strategies for good reason — not all perform consistently through varying market cycles.
- A point-to-point cap strategy tends to perform well in a stable growth environment, while an averaging strategy tends to stand out more in a volatile environment.
- Strategies utilizing volatility-control indices offer more stable returns when stock-market indices are fluctuating.
Relying on a single index strategy adds risk to achieving long term objectives.
The graph below shows the annual performance rankings among the (1-year) index accounts offered with MarketValue Index Annuity during the 3 years ending 12/31/2020.
Index strategy annual performance rankings 1/1/2018 – 12/31/2020; Assumes cap and participation rates in effect 4/14/2021, and income rider not elected.
By diversifying premium among a variety of strategies, your clients may realize more consistent overall performance than going “all in” on a single strategy — and reduces the temptation to chase past results by reallocating.
Index-Account Rankings for All Index Annuities – 12 Years
Important Considerations When Evaluating an Index Annuity
When seeking an accumulation-focused index annuity, consider the cap and participation rates available among all strategies offered. Index strategy performance is subject to market conditions throughout the year, not just the index change at the end of the contract year. Also consider the issuer’s commitment to strong renewal rates.
Learn More About Index Annuities from EquiTrust Life
Questions? Call Sales Support
at 866-598-3694 or visit
the Agent Website at
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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