Fixed Annuity

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A fixed annuity offering choices to balance your accumulation and liquidity needs


Does your financial time horizon rule out most annuities?

Is access to a portion of your money important to you?

Do you seek opportunities with future interest rate movements?


The choice is clear . . . for peace of mind and tax-deferred growth.



CHOICEFOUR from EquiTrust Life Insurance Company® is a tax-deferred annuity featuring competitive

one-year renewable interest rates, access to your money and protection of your principal. It is built on the understanding that competitive returns and minimal taxation are critical to reaching your retirement goals. You choose the time horizon that best fits your liquidity needs and a strategy that suits your interest rate outlook.


CHOICEFOUR is a single premium deferred annuity with a twist – you can make additional premium payments anytime during the first contract year. Plus, you have a variety of choices to customize your contract to suit your objectives.

CHOICEFOUR is really four products in one. You choose the product for you:


The “Base Contract” features a one-year fixed rate that is reset annually. All premiums paid in the first contract year will receive the same interest rate as the initial premium. The interest rate in subsequent years may change on each contract anniversary – subject to the Minimum Guaranteed1 Interest Rate.


Upon partial withdrawal or surrender2, you are subject to a surrender charge on the accumulation value, in effect for nine years and declining annually: 12, 11, 10, 9, 8, 7, 6, 4 and 2 percent.3


If you need access to money from your contract, you may withdraw interest earned in the prior 12 months, and do so without surrender charges.



If you’re confident that you will not need access to your money early, you may choose the Market Value Adjustment (MVA) Option. This option gives you an immediate 1.50 percent premium bonus, applied to all premiums received in the first contract year.

The Market Value Adjustment Option affects early surrenders of the contract in excess of the free withdrawal provision. The MVA may increase or decrease the accumulation value surrendered when interest rates move up or down relative to rates at the time of your annuity purchase. At the end of the surrender charge period, your cash surrender value will equal the full accumulation value. Ask your agent for more details on the MVA, or refer to your contract.



If you have a financial time horizon shorter than nine years, you may choose the shortened surrender charge schedule available with the Liquidity Option. This will reduce your surrender charge schedule to six years, declining annually: 12, 11, 10, 9, 8 and 7 percent.3 The cost of the Liquidity Option is reflected in an interest rate slightly lower than the rate available with the Base Contract.


In addition, the Liquidity Option allows you greater access to your money. You may withdraw up to 10 percent of the accumulation value annually without surrender charge, beginning in the second contract year. Although withdrawals of greater than 10 percent can be made, a surrender charge will be applied to amounts exceeding the 10 percent maximum.


Keep in mind that any withdrawals may be subject to federal income tax, and you may incur a 10 percent IRS penalty tax on withdrawals taken prior to age 591/2.



This option combines the benefits of both. If you prefer a shorter surrender charge schedule, yearly access to 10 percent of your accumulation value without surrender charge or MVA, as well as a 1.50 percent premium bonus in exchange for the Market Value Adjustment and a slightly lower interest rate, then both Options may be right for you.


Getting Started

CHOICEFOUR is available for issue ages 0-85. You pay no initial front-end sales charges or annual maintenance fees; 100 percent of your premium goes to work for you right away.


Other Features


Several annuitization payment options are available, including payment for life, payment of a designated amount or payment for a certain period of time. You determine the schedule that best fits your financial circumstances – a period as short as 5 years, or for as long as the annuitant is alive. Your agent can help you determine the most appropriate payment option, or discuss a specific payment schedule you may have in mind.


Currently, all interest income earned on an annuity accumulates on a tax-deferred basis. No income taxes are payable until you receive a payment from your contract. If you are under age 59 1/2 at the time of withdrawal, an additional 10 percent IRS penalty may be imposed. Tax deferral is currently available only to individuals and joint owners, not to corporations or other non-individuals.4



You are guaranteed, upon surrender, to receive no less than 100 percent of your premiums, excluding any premium bonus if applicable, less any partial withdrawals, plus interest earned at a rate of no lower than 1% and no higher than 3%, less surrender charges.



For additional peace of mind, your contract includes a Nursing Home Waiver Rider5 at no extra cost.

Available at issue up to age 80. If you are confined to a nursing home or hospital for 90 days or more, your contract accumulation value will be available without surrender charges or MVA beginning in the second contract year and during your confinement.


If the owner of the annuity dies, the full accumula- tion value is paid to the beneficiary, without surren- der charges or MVA. Upon death of an owner, the beneficiary may choose to have the death benefit paid immediately or applied to a payment option.



After your CHOICEFOUR contract is issued, you have a specified number of days to review it; see your contract for complete details. If you are not com- pletely satisfied with the terms, you may return the contract and receive 100 percent of your premiums paid, less any prior withdrawals.


Ask Your Agent

Ask about the variety of options that CHOICEFOUR offers for the stages of your life, or refer to your contract.


This is a summary only. CHOICEFOUR may not be available in all states. In those states where it is available, certain provisions may vary or may not be available. Prior to purchasing this contract, contact your agent or the company for complete contract provisions and details.

Benefits and Riders

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How do these riders work?

The Accelerated Benefit Riders (ABRs) are offered for no additional premium. However, the accelerated benefit payment will be less than the amount of death benefit requested because it is reduced by an amount calculated based on evaluation of the insured’s future expected mortality at the time the benefit is exercised as well as an administrative fee of up to $500 assessed when the benefits are elected. See acceleration amount limitations below.


Three separate riders may provide for the payment of an accelerated benefit which cover the following conditions:

  • Accelerated Benefit Rider for Terminal Illness (Policy Form Series: ABR14-TM): For use if an eligible insured has an illness or chronic condition that is expected to result in death within 12 to 24 months, depending on state
  • Accelerated Benefit Rider for Chronic Illness (Policy Form Series: ABR14-CH): For use if an eligible insured is unable to perform two out of six activities of daily living (bathing, continence, dressing, eating, toileting, or transferring) or is cognitively
  • Accelerated Benefit Rider for Critical Illness (Policy Form Series: ABR14-CT): For use if an eligible insured experiences a critical illness described in the rider after the issue date. Covered critical illnesses may be found in the Rider

California Residents:

  • A supplemental application is required to determine
  • The chronic and critical illness versions are not available for applicants age 65 and
  • Chronic illness is not available in conjunction with term coverage whether it is the base policy or a
  • The accelerated death benefit is an unrestricted cash


Minimum Policy Death Benefit to Obtain Riders:

  • Terminal Illness: $25,000
  • Chronic & Critical Illness: $50,000


Maximum Death Benefit Eligible for Acceleration

  • $2,000,000 (issue ages 0 through 65)
  • $1,000,000 (issue ages 66 or older)

Policies exceeding the maximum acceleration amount will still contain the Accelerated Benefit Riders; however, the owner will only be able to accelerate up to the maximum death benefit eligible for acceleration. For example, on a $4,000,000 policy (where eligible), the owner will only be able to accelerate $2,000,000 if issue age 65 or under at time of issue.


There is no minimum partial acceleration request; however, the partial acceleration will not be allowed if the policy’s face amount would be reduced below the minimum required for the product.

The accelerated benefit may be paid in a lump sum or applied to any settlement option under the contract that does not involve life contingent payments.

Not everyone that applies for acceleration will be eligible to receive accelerated benefits.

Eligible Accelerations:

If the primary Insured suffers a qualifying medical condition, the base policy and any additional riders on the primary Insured are eligible for acceleration. Likewise, if a spouse or other Insured party suffers a qualifying condition, their specific rider benefits will also be eligible for acceleration. The Children’s Term Rider is not eligible for acceleration.

Upon payment of the accelerated benefit to the owner, the policy or rider(s) providing the eligible death benefit will be treated as if the Insured has died if full acceleration is elected. In the event of a partial accelerated benefit, the policy or rider will be treated as if there has been a decrease to the face amount.

This Rider is automatically included in specified life insurance products in New York. There is no additional premium for the Accelerated Benefit Rider but an administrative fee not to exceed $300 will be deducted from the initial Accelerated Benefit.

In the unfortunate event, you are diagnosed with an illness that is expected to result in death within 12 months, you will be eligible to accelerate a portion of your death benefit in advance.

The maximum Initial Accelerated Benefit you may request is the lesser of 50% of the Eligible Death Benefit or $250,000. However, should you wish to initiate subsequent accelerations, the maximum eligibility of acceleration is limited to 80% of the Eligible Death Benefit or $400,000.

Upon death, any funds paid under the Accelerated Benefit Rider will be held as a lien against the death benefit in addition to any outstanding loan balances and interest charged to the policy.

How does this benefit work?

This Rider is automatically included on qualifying Signature Guaranteed Universal Life Insurance Policies. On each available option period, the rider allows you to surrender your policy in full and receive a return of your premiums paid subject to policy details.


The rider requires payment of the policy’s annual minimum premium to remain in-force. In any given year, if the policy’s annual premium payment is not satisfied you will be notified and have 60 days to make the payment. If the required payment is not paid, the rider will terminate and will not be eligible for reinstatement.


Rider Restrictions

  • The Cash-Out Benefit will be reduced by any loans or withdrawals.


Rider Details

  • You may only choose to Cash-Out during the 60 day period following each available option The Cash-Out Benefit will be reduced by any loans, withdrawals, or decreases.
  • Cannot be added after
  • The amount of the Cash-Out Benefit will depend on the option period the rider is exercised and the death benefit of the

At each option period, the Guaranteed Cash-Out Value will be the LESSER OF:

  1. A specified percentage of premiums paid OR
  2. The benefit maximum, which is a percentage of the death


The Rider Will Terminate When Any Of The Following Occur:

  • The policy’s minimum premium requirements are not met
  • The date the policy terminates or is surrendered in full
  • The 61st day after the last available option period

Note: Once the rider terminates, it cannot be reinstated.





Source: American National