EquiTrust MarketPower Bonus – Upfront Bonus, Income Multipliers, and Long-Term Growth
EquiTrust MarketPower Bonus – Upfront Bonus, Income Multipliers, and Long-Term Growth
At Diversified Insurance Brokers, we help clients navigate the complex world of annuities with clarity, strategy, and confidence. One solution that consistently stands out for individuals approaching retirement is the EquiTrust MarketPower Bonus Fixed Indexed Annuity, issued by EquiTrust Life Insurance Company. This product is designed for individuals who want market-linked growth potential, meaningful premium incentives, strong income guarantees, and protection against market losses — all within a tax-deferred structure. For pre-retirees who are five to ten years from income, or for retirees repositioning existing retirement assets, MarketPower Bonus can serve as a strategic bridge between growth and lifetime income security.
Financial Strength Notice: EquiTrust Life Insurance Company holds an AM Best Financial Strength Rating of B++ (Good) — below the A- threshold most financial advisors recommend for long-term FIA commitments. However, EquiTrust holds A- ratings from both S&P and Fitch, and its NAIC Complaint Index of 0.21 reflects strong operational quality. For a 10- to 14-year surrender commitment, buyers should weigh all three rating agency assessments alongside the state guaranty association coverage. Full carrier context is available at Is EquiTrust a Good Company?
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EquiTrust MarketPower Bonus: Key Product Specifications
| Feature | Details |
|---|---|
| Carrier and Financial Strength | EquiTrust Life Insurance Company. Founded 1996; independent insurance operations 2003. Controlling shareholder: Magic Johnson Enterprises (2015). AM Best: B++ (Good). S&P: A-. Fitch: A-. NAIC Complaint Index: 0.21 (well below 1.00 national average). $23B+ in assets. $7B+ in annual annuity premiums sold in 2024. Not in J.D. Power study. Ward’s 50 best life and health insurance companies — multiple consecutive years. Issue ages: 0–75 without IBR; 40–75 with IBR elected. |
| Premium Bonus and Surrender Period | 10% premium bonus credited on first-year premiums — applied immediately and permanently to the Accumulation Value. One recent independent review cites 12% for the current version — confirm at application. Bonus is not subject to a separate vesting schedule for accumulation purposes. Flexible premium first year only: additional premiums accepted in year 1 (minimum $2,000 per addition, maximum $1,000,000 without prior EquiTrust approval); all premiums receive the 10% bonus. Surrender period: 10 to 14 years depending on version — confirm which version applies in your state. IBR restriction: any withdrawals taken before income withdrawals begin will reduce the Benefit Base proportionately. Rate hold: 60 days from application date. |
| Income Benefit Rider (IBR) — Key Terms | Optional — must be elected at time of application; cannot be added later. Owner must be age 40+. IBR cost: approximately 1.25% of Accumulation Value annually. Benefit Base: all premiums plus premium bonuses, less proportional withdrawal adjustments, growing at a roll-up rate for up to 10 years or until income starts. Roll-up rate discrepancy: source page states 6%; official brochure states 8% — confirm the current declared roll-up rate at application. Income withdrawals may begin after year 1 when owner is at least age 50 (both owners for joint). Income continues even if Accumulation Value depletes. Annual income recalculated as the greater of the prior year’s amount or current Benefit Base × original withdrawal percentage. IBR terminates on death (unless spousal continuation), full surrender, annuitization, ownership change, or Excess Withdrawals depleting Accumulation Value. See our guide on how income riders work. |
| Enhanced Income Withdrawal (Chronic Illness) | If the annuitant qualifies as chronically ill — unable to perform 2 of 6 activities of daily living, as defined in the contract — income payments may be doubled for up to 5 years (2X single life). For joint contracts, the increase is 1.5X. The Accumulation Value must remain above zero. Same qualification structure as North American PrimePath Pro 10 and Midland National IndexBuilder 10. Must have the IBR in force. Subject to state availability. Not a long-term care insurance policy. For a full comparison of how this feature compares across income FIAs, see our resource on how GLWBs work across different carriers. |
| Liquidity and Waivers | Free withdrawal: 10% of Accumulation Value annually after year 1. MVA may apply to excess withdrawals depending on state. Nursing home/hospital confinement waiver: after year 1, up to 100% of Accumulation Value, 90+ days confinement, all ages, no charge. Terminal illness waiver: up to 75% of Accumulation Value, all ages, no charge. Death benefit: full Accumulation Value to beneficiaries. Rate Buy-Up option: 1% annual fee for enhanced cap/participation rates on select crediting strategies. For full context on withdrawal structures across carriers, see our guide on how income riders and withdrawal provisions interact. |
| Index Crediting Strategies | Fixed account (1-Year Interest Account) plus multiple indexed strategies: 1-Year Point-to-Point with Cap (S&P 500), Barclays Focus50 Index options, S&P MARC 5% Excess Return Index, and monthly point-to-point. 0% floor on all indexed strategies. Gains locked in annually at each reset. Subsequent premiums received in year 1 go to 1-Year Interest Account, then reallocated at next anniversary. Understanding how caps, participation rates, and spreads determine credited interest is covered in our guide on how annuities earn interest. |
Unlike traditional brokerage investments that fluctuate with every market downturn, a fixed indexed annuity provides structured growth tied to external market indices while protecting principal from negative performance. That means when markets decline, your contract does not lose value due to index performance. For conservative investors concerned about volatility, sequence-of-returns risk, and retirement timing, that floor protection can be invaluable.
The 10% Bonus: Permanent, Immediate, and Compounding
One of the most attractive features of MarketPower Bonus is its upfront premium incentive. The 10% bonus is credited immediately upon premium receipt and becomes a permanent part of the Accumulation Value — it is not subject to a separate vesting schedule. For someone rolling over $300,000, a 10% bonus adds $30,000 to the starting Accumulation Value on day one. That $30,000 then earns indexed credits alongside the original premium through the full surrender period. The compounding effect of a 10% head start over a 10- to 14-year surrender period is meaningful, particularly when the IBR benefit base further enhances the income calculation. Our resource on whether bonus annuities are right for you frames the net benefit analysis — comparing the bonus against the typically lower cap rates and participation rates that bonus products offer relative to no-bonus alternatives from the same carrier at the same ratings tier. The central question: does the 10% head start, compounded with the IBR roll-up and the income multiplier potential, produce a better 10- to 14-year income outcome than a no-bonus A-rated FIA with higher indexed crediting parameters and a lower or no-cost income rider? Formal illustrations comparing both scenarios at your age and premium are the definitive tool. Our resource on when a bonus annuity makes sense covers the break-even analysis framework.
The IBR Roll-Up Rate: Confirming 6% vs. 8% Before Application
The Income Benefit Rider’s roll-up rate is the most consequential number in any MarketPower Bonus income illustration — and it has been cited at two different figures in official EquiTrust materials. The source page states “currently 6% for up to 10 years, subject to contract terms.” An official EquiTrust consumer brochure states “8% accumulation for up to 10 years.” These two rates, applied to the same Benefit Base over 10 years, produce materially different income projections. A $300,000 premium + 10% bonus = $330,000 starting Benefit Base. At 6% simple roll-up for 10 years: $330,000 + ($19,800 × 10) = $528,000 income base at year 10. At 8% simple: $330,000 + ($26,400 × 10) = $594,000. The difference of $66,000 in income base would translate to meaningfully different lifetime withdrawal amounts depending on the payout percentage at the buyer’s age. Request a current EquiTrust illustration that explicitly states the declared roll-up rate — not a generic brochure — before making any income projection decisions. The rate in effect at application is what applies to your contract. For a full explanation of how roll-up rates translate to income amounts, our resource on top income FIAs by rider structure provides a comparative framework across carriers.
For those prioritizing lifetime income, the IBR also provides the Enhanced Income Withdrawal feature — the ability to double income payments for up to 5 years if qualifying chronic illness criteria are met. The 1.5X version applies to joint contracts. This is the same ADL-based income multiplier structure used by North American’s PrimePath Pro 10 and Midland National’s IndexBuilder 10, with the same fundamental qualification requirements: unable to perform 2 of 6 ADLs, licensed caregiver, account value above zero. EquiTrust’s version applies to the income withdrawal amount under the IBR, not independently of the rider. Comparing which carrier’s income multiplier structure produces better outcomes at your specific situation requires side-by-side illustrations. Our resource on annuity laddering strategy shows how MarketPower Bonus might serve as an income-generation anchor alongside shorter-duration MYGA tranches in a retirement portfolio.
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Because annuity comparisons can be complex, we often guide clients through side-by-side illustrations. Some may ultimately prefer guaranteed-rate contracts highlighted on our Best Fixed Annuities for Retirement page, while others prioritize enhanced bonuses and indexed upside potential. For individuals rolling over employer plans, understanding the mechanics of a 401(k) rollover to an annuity or a Roth IRA to an annuity ensures tax deferral continues seamlessly. MarketPower Bonus is often a strong fit for individuals five to ten years from retirement who want to lock in a premium incentive now while preserving income flexibility later. Whether you are comparing bonus annuities, evaluating lifetime income riders, or exploring rates overall, reviewing today’s best annuity rates helps ensure you understand the full landscape before finalizing any decision. The sibling EquiTrust MarketFive and MarketSeven serve buyers who want the EquiTrust carrier at shorter surrender periods without the bonus structure.
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The IBR roll-up is listed as 6% on the source page but 8% in official brochures — which do I rely on?
Neither — rely only on a current EquiTrust illustration generated for your specific application. Both figures appear in official materials, indicating the rate has changed over time or differs by product version. The difference between a 6% and 8% simple roll-up on a $330,000 starting Benefit Base over 10 years is approximately $66,000 in income base — a material amount that should not be assumed without current confirmation. Request a current EquiTrust illustration that explicitly states the declared roll-up rate before making any income projection decisions. The rate in effect at application is what applies to your contract.
The IBR must be elected at application and cannot be added later — why does that matter?
If you purchase MarketPower Bonus without the Income Benefit Rider, you permanently forfeit the lifetime income guarantee, the roll-up accumulation on the Benefit Base, and the Enhanced Income Withdrawal (chronic illness multiplier). These cannot be added after issue. For buyers who may want income flexibility later, electing the IBR at application (approximately 1.25% annual cost) preserves all future optionality — income can be started or deferred as circumstances evolve, and the income multiplier remains available throughout the contract if qualifying events occur. The ongoing cost of preserving that optionality is the 1.25% annual fee on the Accumulation Value, applied regardless of whether income withdrawals have begun.
EquiTrust is B++ (AM Best) but A- from S&P and Fitch — for a 10- to 14-year commitment, how do I evaluate that?
For a 5-year commitment, the A- from S&P and Fitch alongside B++ from AM Best is a reasonable risk profile. For a 10- to 14-year commitment, the calculus shifts — AM Best’s B++ reflects more conservatively on that longer horizon. AM Best’s framework specifically weights the adequacy of reserves and capital relative to the carrier’s risk profile over extended periods, which is arguably the most relevant evaluation for a 14-year FIA commitment. Buyers who hold their personal standard at AM Best A- or higher for any commitment above 7–10 years should evaluate whether an A-rated income FIA from Midland National, North American, or F&G produces a comparable outcome for their age and premium. State guaranty association coverage (typically $250,000 per covered contract) provides a secondary backstop, but does not replace the importance of carrier financial strength evaluation for long commitments.
What is the difference between the MarketPower Bonus and the MarketTwelve Bonus?
Both are EquiTrust bonus FIAs, but they differ in surrender period length and bonus structure. The MarketTwelve Bonus Index has a 12-year surrender schedule and a 6% bonus on premiums paid in the first five years of the contract — a multiple-year bonus window rather than a first-year-only bonus. The MarketPower Bonus has the 10% (or potentially 12% current) first-year-only premium bonus with its longer 10- to 14-year surrender schedule depending on version. The choice between them involves evaluating the surrender period commitment, the bonus structure (upfront lump sum vs. multi-year accumulation), and how each interacts with the optional income rider if elected. Both products are from the same B++/A- carrier. Buyers who want to maximize upfront bonus leverage on a single lump sum favor the MarketPower Bonus; buyers who expect to make additional premium contributions over 5 years may find the MarketTwelve Bonus’s multi-year bonus window more advantageous. Our resource on EquiTrust’s Certainty Select MYGA covers the no-bonus guaranteed growth alternative from the same carrier for buyers who want simplicity alongside the EquiTrust relationship.
Magic Johnson Enterprises owns EquiTrust — is that relevant for annuity buyers?
From a financial strength perspective, the controlling shareholder identity is secondary to the AM Best, S&P, and Fitch ratings, which reflect the insurance company’s capital adequacy and risk management practices rather than its corporate ownership structure. Magic Johnson Enterprises became the controlling shareholder of EquiTrust in 2015. The company has continued operating under the same management and product structure since the ownership change, and the B++ from AM Best alongside A- from S&P and Fitch reflects the carrier’s post-acquisition financial position. The NAIC complaint index of 0.21 and the Ward’s 50 recognition for operational quality suggest the ownership transition has not impaired the carrier’s financial management or customer service profile. Buyers who are concerned about the unconventional controlling shareholder should verify the current AM Best rating and review EquiTrust’s annual financial statements before committing to a long-term surrender schedule.
About the Author:
Jason Stolz, CLTC, CRPC, DIA, CAA and Chief Underwriter at Diversified Insurance Brokers (NPN 20471358), is a senior insurance and retirement professional with more than 25 years of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, Group Health, Travel Medical and Evacuation Insurance, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, and contributions from his agency featured in Kiplinger and GoBankingRates— highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient. Visitors who want to explore current annuity rates and compare options across multiple insurers can also use this annuity quote and comparison tool.
Explore More: Browse our complete Lifetime Income Planning guide — covering retirement income strategies, account transfers & annuity income solutions from 100+ carriers.
Last Reviewed: June 24, 2026 |
Reviewed by: Jason Stolz, CLTC, CRPC, DIA, CAA
Chief Underwriter, Diversified Insurance Brokers, Inc. | NPN: 20471358 | Licensed in all 50 states
Editorial Standards: Diversified Insurance Brokers maintains rigorous editorial standards to ensure accuracy, clarity, and independence in all content. Learn more about our editorial standards and commitment to transparency.
