EquiTrust MarketValue Index Annuity – Market Participation with Guaranteed Lifetime Income Options
At Diversified Insurance Brokers, we help individuals and families protect their future with customized annuity solutions tailored for growth, safety, and reliable income. One standout option is the EquiTrust MarketValue Index Fixed Indexed Annuity, issued by EquiTrust Life and Annuity Insurance Company , which combines market participation, downside protection, and income flexibility for a balanced retirement strategy.
Whether you’re looking to grow assets safely, create a future income stream, or add chronic illness protection, this fixed indexed annuity can help anchor the “secure” portion of your retirement plan. It often sits alongside other solutions like traditional fixed annuities or fixed indexed annuities designed for lifetime income .
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Growth Potential Without Market Losses
The MarketValue Index Annuity is a fixed indexed annuity that links its growth to several diversified market indices while guaranteeing your principal against market downturns. That means you can benefit from index performance, but you’re not directly invested in the stock market.
Available index-crediting options include:
- S&P 500 Index
- S&P 500 Dynamic Intraday TCA Index
- Barclays Focus50 Index
- S&P MARC 5% Excess Return Index
These strategies use tools such as point-to-point caps, participation rates, and performance triggers to capture upside potential. Our advisors help you compare these choices and coordinate them with your broader plan—especially if you’re also evaluating other options on how annuities earn interest or comparing today’s best annuity rates .
Liquidity and Access to Funds
While this annuity is designed for long-term growth, it also offers access to funds when you need them. After the first contract year, you can usually withdraw up to 10% of your contract value annually without penalty, subject to current contract rules. Many retirees use this as a flexible way to supplement income, cover one-time expenses, or build in “backup” cash flow.
For those who experience hardship, the annuity includes withdrawal charge waivers for:
- Nursing home confinement
- Terminal illness
This combination of growth, access, and protection is especially appealing for clients who want control over their money without giving up safety. It can also complement strategies like fixed annuity laddering or plans that integrate Social Security and annuity income together .
Income Enhancement for Chronic Illness
One of the most notable features is the Enhanced Income Withdrawal option. If the policyholder becomes chronically ill and meets the contract’s qualification rules, this benefit can double scheduled income payments for up to five years.
For retirees concerned about long-term care costs, this can act as a built-in “buffer” that increases income precisely when it’s needed most. It does not replace stand-alone long-term care insurance, but it pairs well with strategies that also consider long-term care coverage with shared benefits or non-qualified LTC annuities .
Optional Guaranteed Lifetime Income Rider
The optional Income Benefit Rider can transform this FIA into a guaranteed lifetime income stream, especially useful for retirees who want to create their own “personal pension” when they don’t have an employer pension.
Key features of the rider include:
- A 10% bonus on the benefit base for first-year premium payments.
- Lifetime withdrawal percentages based on age at the time you start income.
- Enhanced income during qualifying impairments when combined with the Enhanced Income Withdrawal feature, providing extra support during chronic illness.
Our advisors model different scenarios—such as starting income early vs. deferring income—to show how this rider compares with other fixed indexed annuities with lifetime income riders and with other options in the market.
Death Benefit and Legacy Planning
Beyond income and growth, the MarketValue Index Annuity offers a guaranteed death benefit, ensuring your beneficiaries receive the full contract accumulation value according to policy terms. This makes it a useful tool for efficient wealth transfer as well as retirement income.
If you’re comparing how various annuities handle beneficiaries, you may also want to review:
Who Should Consider the MarketValue Index Annuity?
The EquiTrust MarketValue Index Annuity is often a good fit for:
- Pre-retirees and retirees without pensions who want to grow their savings safely.
- Individuals who want market-linked growth without risking principal.
- Those planning for potential long-term care needs or chronic illness and who value enhanced income features when health changes.
- Anyone needing a customized income strategy with the option to include lifetime guarantees and protect a spouse.
It can also be funded with qualified money from IRAs or retirement plans, similar to the strategies described in how to transfer an IRA to an annuity and how to transfer a 401(k) to an annuity .
Why Work With Diversified Insurance Brokers?
As an independent firm representing over 75 top-rated insurance carriers, Diversified Insurance Brokers helps you compare the MarketValue Index Annuity against other fixed indexed annuities, MYGAs, and income products. We take the time to explain how each crediting strategy, rider, and benefit works so you can make informed decisions.
Our expertise ensures you get the right annuity, structured the right way, with a plan that matches your goals, income needs, and risk tolerance. We’ll also help you coordinate this annuity with other safe-money tools and with your overall retirement income plan, so it fits neatly into your bigger picture rather than sitting in a silo.
Next step: use the Lifetime Income Calculator above to explore sample payouts, then request a personalized quote so you can see exactly how this annuity compares with other top annuity rates available today .
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Ready to explore this annuity in more detail—or compare it with other carriers to see if even higher rates are available? With guaranteed income, principal protection, and long-term growth potential on the line, making the right choice is essential. The experienced advisors at Diversified Insurance Brokers will guide you through the options and design a strategy tailored to your retirement goals.
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FAQs: EquiTrust MarketValue Index Fixed Indexed Annuity
What type of annuity is the EquiTrust MarketValue Index?
It is a fixed indexed annuity (FIA). Your principal is protected from market losses, and interest is credited based on the performance of selected market indices rather than a fixed rate alone.
Can I lose money in this annuity if the market drops?
No, not from market performance alone. The contract is designed so that your principal is protected from index downturns. However, withdrawals above the penalty-free amount, surrender charges, or rider costs can reduce your account value.
How do the index-crediting strategies work?
You can allocate value among several index options that use caps, participation rates, and triggers to credit interest when the index performs well. You are not directly invested in the index, but your credited interest is linked to its performance within the contract’s rules.
How much can I withdraw each year without penalty?
After the first contract year, most designs allow up to 10% of contract value per year as a penalty-free withdrawal. Amounts above that during the surrender period may be subject to withdrawal charges and market value adjustment (if applicable).
What is the Enhanced Income Withdrawal feature?
If you become chronically ill and meet the annuity’s qualification guidelines, the Enhanced Income Withdrawal feature can increase your income payments—often doubling them for a limited period—to help cover higher expenses during that time.
How does the optional Income Benefit Rider work?
The optional Income Benefit Rider turns the annuity into a guaranteed lifetime income stream. It typically adds a benefit base bonus on first-year premium and sets lifetime withdrawal percentages based on your age when income begins, with potential enhancements if you become impaired.
Can I use IRA or 401(k) funds to purchase this annuity?
Yes. The MarketValue Index Annuity can often be funded with qualified assets via a direct rollover or transfer from an IRA or employer plan. This keeps the money tax-deferred while positioning it for indexed growth and future income.
What happens to my annuity when I die?
Your beneficiaries generally receive the full contract accumulation value according to the policy’s death benefit provisions. Properly completed beneficiary designations can help avoid probate and simplify wealth transfer.
Is this annuity a good fit for everyone?
No single product is right for everyone. This annuity is best for savers who want principal protection, the potential for higher returns than CDs, and the option to add income and chronic illness features. If you prioritize maximum liquidity or very short time horizons, other solutions may be more appropriate.
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades 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, 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, 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.
