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For Producer Use Only
Sales Week: Do renewal rates ever go up?
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DO RENEWAL RATES EVER GO UP?
AT EQUITRUST, THEY DO!
Touch base with your clients about the importance of a strong renewal rate history
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You — just like your clients — no doubt prefer to work with companies that don't just talk the talk, they walk the walk. And when it comes to renewal rates, that's what EquiTrust is committed to doing.
In that spirit, we want to show you the impact on renewal rates for EquiTrust fixed index annuity (FIA) contracts when rates on account options increase.
We make renewal rate transparency a priority, providing more than a flashy, upfront rate. When you choose EquiTrust, you and your clients can rest easy knowing you've chosen a company with renewal rate integrity.
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Let’s take a look at renewal rate history on a real MarketValue Index® contract issued on 03/01/2020.
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Crediting strategy
Initial rate1
Year 4 renewal rate (2023)
Year 5 renewal rate (2024)
1-Yr Interest
2.40%
2.35%
2.35%
S&P 500 1-Yr Pt-to-Pt Cap
4.75%
4.60%
4.60%
S&P 500 1-Yr Pt-to-Pt Participation
40%
23%
33%
S&P 500 1-Yr Mo Avg Cap
5.50%
5.50%
5.50%
S&P 500 1-Yr Mo Avg Participation
70%
60%
65%
S&P 500 1-Yr Mo Cap
1.70%
1.70%
1.70%
S&P 500 2-Yr Mo Avg Cap
16%
15%
15%
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We make it easy to view renewal rate history from the date of contract issue for any EquiTrust product.
1 With the exception of the 1-Year Interest Account, renewal rates do not reflect actual credited rates, or the amounts credited to the account. The actual credited amounts are based on the performance of the S&P 500 Index, subject to the renewal cap or participation rate.
2 Premium bonus on MarketForce Bonus Index increased by 3% in CA
EquiTrust does not offer investment advice to any individual or agent/producer and this material should not be construed as investment advice. Products underwritten, issued and distributed by EquiTrust Life Insurance Company, West Des Moines, Iowa.
