WealthMax Bonus Life
®Provide a Financial Legacy – Single Premium Index Life Insurance
Are tax-deferral and building a fi nancial legacy important to you?
Are you concerned about liquidity to cover expenses in your later years?
WealthMax Bonus Life Can Help You Prepare
You’ve worked hard to build a solid fi nancial foundation. As you look to the future, income tax deferral of policy growth and family protection may be of greater
importance. Today, you can take a step to increase and protect the money you pass along, with a simplifi ed issue life insurance policy.
WealthMax Bonus Life Enables You to:
• Share in S&P 500®1 gains
• Avoid the lack of security created by a fl uctuating stock market
When the Market is Up...You’re Up!
When it’s Down...You’re Not!
Funds in a WealthMax Bonus Life insurance policy are not invested directly in the stock market and are not directly
exposed to market risk. Only increases in the S&P 500 index® impact the funds in your policy. And you benefi t from tax-deferred earnings, withdrawal privileges, built-in guarantees and a 12% premium bonus.
You may choose among several accounts – including the 1-Year Interest Account which earns a fi xed interest rate, and a variety of Index Accounts that earn credits based on changes in the S&P 500 index.®
On appropriate policy anniversaries, “index credits” are determined on the Index Accounts and applied to your policy’s current accumulation value. Index credits are based on S&P 500® performance. If the index declines, your accumulation value is not impacted.
At the end of 10 years, surrender charges no longer apply. You continue to earn interest and index credits on an income tax-deferred basis.
Leave a Legacy with WealthMax Bonus Life
The concept is simple. Any increase in the accumulation value of your WealthMax Bonus Life insurance policy grows income tax-deferred during your lifetime. The policy pays a death benefi t to your benefi ciaries when you die.2 You can purchase a policy quickly; policies are usually issued within a week of premium payment. Life insurance death benefi ts generally pass to your benefi ciaries free of federal income taxes.3 Our government has created tax advantages for life insurance that you may not fi nd in other vehicles. And because the death proceeds generally bypass probate, money can pass to benefi ciaries more quickly.
What Does “Income-Tax Free” Mean to Your
Benefi ciaries?
If you use a taxable savings vehicle for your money, upon your death, a substantial portion may be paid in taxes. With a WealthMax Bonus Life insurance policy, the death benefi t received by your benefi ciaries is generally
income-tax free and does not pass through probate.3
Comparison of a Life Insurance Policy Death Benefi t with a Taxable Investment
This example is hypothetical and for illustrative purposes only. Assumptions: Female, age 60, standard non-tobacco rating class with a $50,000 single premium. Taxable investment assumes a 3.0% interest rate and a 28% income tax bracket. Taxes are paid from the taxable investment. All other interest is reinvested. This hypothetical chart compares a potential death benefi t that may be payable to a benefi ciary of a life insurance contract with a taxable investment.
Dollars (in thousands)
3.0% fi xed investment taxed annually at 28% Death benefi t of life insurance contract2,4
Years 1 5 10
$120 100 80 60 40 20 0
$103,500
$51,080 $55,734
$62,381
$103,500 $103,500
$50,000 Premium $103,500 WealthMax Bonus Life Death Benefi t2
Build Your Legacy
Take a look at the impact WealthMax Bonus Life could have on your estate. For a 60-year-old female non- tobacco user with a $50,000 single premium, the death benefi t will be $103,500 the day the policy is issued.4
What If You Need Access to Your Money?
Only money not needed to meet current and foreseeable living expenses should be placed in a WealthMax Bonus Life policy. However, if you need cash, you may take either a loan on your policy, or a withdrawal that may be penalty-free in certain instances.5,6 Most WealthMax Bonus Life policies will be classifi ed as Modifi ed Endowment Contracts (MECs). Distributions, including loans, from MECs are generally treated fi rst as taxable distributions to the extent of gain in the policy and then as tax-free recovery of cost basis. In the event of a full surrender, the owner will not receive less than the single premium payment, less any outstanding loans or partial withdrawals.
What If You Encounter an Illness?
Your WealthMax Bonus Life policy gives you access to cash if the insured is diagnosed with a chronic or terminal illness through a benefi t called the “Accelerated Death Benefi t,” because death benefi ts are “accelerated” to help meet health-related expenses during the insured’s lifetime. Accelerated Death Benefi ts may be received federal income-tax free.7
Is WealthMax Bonus Life Right For You?
• Would you like income-tax deferred growth potential during your lifetime?
• Do you have fi nancial reserves earmarked for your loved ones or favorite charity?
• Are you concerned about access in the event of a chronic or terminal illness?
• Would you like to avoid income tax on amounts payable to your benefi ciaries upon your death?
Simple, Fast and Convenient
Starting your policy requires only two easy steps. • No Medical Exam or Blood Test. Just a few questions about your medical history. However, issuance of the policy may depend on the answers to the health questions set forth in the application.
• Simple Application. Most policies are issued within days of our receipt of your premium payment.
Benefi ts For You and Your Family
WealthMax Bonus Life makes leaving a legacy for your family as easy as possible.
• Immediate death benefi t2
• Death benefi t received generally income-tax free • Avoids probate
• Cash accessible through Accelerated Death Benefi ts7, loans or withdrawals6
Talk to your insurance agent today about how WealthMax Bonus Life insurance can help you build wealth and leave a legacy for your family or charity.
EquiTrust Life is a Name You Can Trust
When you choose EquiTrust as a fi nancial partner,
you can rest assured your life policy is backed by
conservative investment strategies, anchored by a
disciplined and diversifi ed management style.
EquiTrust is supported by a history of success,
experience and strength; we’re a Guggenheim
Partners company – a global fi nancial services fi rm
with more than $190 billion under management.
The Value of Accelerated Death Benefi ts*
For the 60-year-old woman in the previous example with $50,000 premium, Accelerated Death Benefi ts would be available for these amounts in the event of one of the following health-related conditions.7
$50,000 Premium
$98,075
Terminal Illness Benefi t
$87,725
Nursing Care Confi nement
Benefi t or
$2,868 per month for 36 months
$77,375
Chronic Care Benefi t
or
$1,721 per month for 60 months
OR OR
*Conditions that will accelerate the Death Benefi ts vary by state.
Product Details
Account Options (Index Based)
Account Options (Fixed Rate)
Death Benefi t
Access to Your Death Benefi t
1-Year-Point to-Point Cap Index Account – If the index value at the end of the policy year is greater than the index value at the beginning of the policy year, you receive index credits based on that increase up to a specifi ed cap.8 The cap is reset annually. 1-Year Monthly Cap Index Account – Index crediting for this account is based on the cumulative sum of capped monthly S&P 500® changes over a one-year period. Each of the monthly gains is subject to a cap, but there is no fl oor on monthly declines. Index credits are calculated on an annual basis and will never be less than zero.8 The monthly cap is reset annually.
2-Year Average Cap Index Account – If the average of the monthly index values over two policy years is greater than the index value at the beginning of the index period, you receive index credits based on that increase up to a specifi ed cap.8 The cap is reset every two years.
1-Year Interest Account – A one-year fi xed interest rate is set when your policy is issued. The rate is reset annually, and provides a fi xed rate that you may prefer for a portion of your assets.
Upon the insured’s death, the benefi ciaries will receive the policy death benefi t provided the policy is in force.2 The death benefi t is the greater of the face amount less any loan balance or the greater of the Accumulation Value or the minimum
Guaranteed Cash Value multiplied by the minimum death benefi t percentage applicable to the age, gender and tobacco usage of the insured less any loan balance. Your agent will provide an illustration that shows the death benefi t. Death Benefi ts are reduced by withdrawals, loans and payment of any Accelerated Death Benefi ts.
If the insured’s health condition declines during the insured’s lifetime, a portion of the policy’s death benefi t is available to help with health-related and other expenses.7 A waiting period may apply in some states. The Accelerated Death Benefi t Rider is not available in all states. The Death Benefi t may be accelerated upon certifi cation for one of the following events.
Terminal Illness – If the insured person becomes terminally ill, with a life expectancy of less than 12 months, the owner may request a one-time acceleration of the death benefi t. The accelerated amount will be adjusted by a discount factor. In GA, accelerated amount may be up to the lesser of 50% of death benefi t or $250,000. Nursing Care Confi nement – If the insured person is diagnosed as chronically ill, is confi ned to a nursing facility, and the confi nement is expected to be permanent, the owner may accelerate up to 100% of the death benefi t to be paid out either monthly or in a lump sum. Lump sum payment amounts will be adjusted by a discount factor. Not available in CA, CT and FL.
Chronic Care – If the insured person is diagnosed as chronically ill, the owner may accelerate up to 100% of the death benefi t to be paid out either monthly or in a lump sum. Lump sum payment amounts will be adjusted by a discount factor. The insured must be unable to perform two of six Activities of Daily Living for at least 90 con- secutive days, or require substantial supervision due to severe cognitive impairment to be considered chronically ill. Not available in CA, CT and FL.
Product Details
Access to Contract Cash Value5
Accumulation Value
Surrender Charges9
Withdrawals – After the fi rst policy year, you may withdraw up to 5% of your Accumulation Value each policy year without a surrender charge. Withdrawals of more than 5% are subject to a surrender charge. A $25 fee will be assessed on any partial withdrawal.6
Loans – Loans are available from your policy. A waiting period may apply in some states. Loans will be charged interest annually.5
Your policy value will be credited interest based on the accounts chosen. Cost of insurance charges will be deducted monthly in all years. The annual policy fee is $75, all years. There is also a per $1,000 policy expense charge in years 1-10.
The policy can be surrendered (fully or partially) at any time. Surrenders in excess of a penalty-free withdrawal may be subject to a surrender charge, which is a percentage of the Accumulation Value.
Year Charge
In the event of a full surrender, the owner will not receive less than the single premium, less any outstanding loans or partial withdrawals.
1 10%
2 9%
3 8%
4 7%
5 6%
6 5%
7 4%
8 3%
9 2%
10 1%
© EquiTrust 2014
1”S&P 500®” is a trademark of The McGraw-Hill Companies, Inc., and has been licensed for use by EquiTrust Life Insurance Company. This product is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s makes no representation regarding the advisability of purchasing this product. The S&P 500® Index does not refl ect dividends paid on underlying stocks.
2The policy must be in force at the time of death to pay a death benefi t. The death benefi t will be reduced by any outstanding loan balance at the time of death. The death benefi t is also reduced by any payment of Accelerated Death Benefi ts or partial withdrawals.
3Neither the Company nor its agents give tax, accounting or legal advice. Please consult your professional advisors in these areas.
4Example assumes a 60-year-old female, non-tobacco user.
$50,000 single premium x 2.07 face-amount factor = $103,500 death benefi t at issue.
5The policy will lapse if the loan balance exceeds a certain amount. A policy lapse may be a taxable event.
6This policy may be a “Modifi ed Endowment Contract” (MEC) as defi ned by IRS section 7702A. Distributions including policy loans from a MEC may be treated as taxable income and subject to federal income penalty.
7Accelerated Death Benefi ts may vary by state, including waiting periods after issue date, exclusion of Nursing Care Confi nement or Chronic Care benefi ts, Administrative fees, defi nitions of illness, or discount factors. Refer to the Accelerated Death Benefi t Rider Disclosure included with the Application for
Rider provisions in your state. Accelerated Death Benefi ts may be payable in the event of either terminal illness or chronic illness, but not both. Accelerated Death Benefi ts may be income-tax free. You should consult a qualifi ed tax professional for information on how benefi ts received may impact your personal situation. The Accelerated Death Benefi t shown is based on the initial face amount. Rider provisions, availability and defi nitions may vary by state.
8If the policy is surrendered or lapses, it will not participate in any index returns for the index period in which the policy is surrendered or laspes.
9For Florida residents, a surrender charge will not be deducted if the insured qualifi es under the Waiver of Surrender Charge Rider. Surrender or partial withdrawal is available without Surrender Charge if the insured is confi ned to a nursing home after the fi rst policy year. Nursing care stay must be at least 90 consecutive days, and confi nement expected to be permanent. Benefi ts are available after the policy has been inforce for a year.
This brochure briefl y highlights EquiTrust Life Insurance Company’s WealthMax Bonus Life insurance policy and its benefi ts. For costs and complete details of coverage, including any exclusions, reductions or limitations, and the terms under which the policy may be continued in force, contact your agent. Policy issued on Contract Form Series ICC11-ETL-IUL-2000(04-11) with riders ICC11-ETL-ADBR(03-11), and interest/index accounts ICC11-ETL-1YRINT(04-11), ICC11-ETL-1YRP2PCAP(04-11), ICC11-ETL-1YRMC(04-11), ICC11-ETL-2YAVG- CAP(04-11). May not be available in all states.
EquiTrust Life Insurance Company
7100 Westown Pkwy Suite 200, West Des Moines, Iowa 50266-2521 877-249-3694
• Not a bank or credit union deposit or obligation
• Not FDIC or NCUA/NCUSIF insured
• Not insured by any federal government agency
• Not guaranteed by any bank or credit union
• May lose value
ETL-WML-1100 (1-14)
