EquiTrust MarketPower Bonus Index Review (2026): 15% Bonus

What is the EquiTrust MarketPower Bonus Index?

The MarketPower Bonus Index is a fixed index annuity from EquiTrust Life Insurance Company, built to do one job well: grow a lump sum of money over a long period while protecting the principal from market losses. It carries no income rider and no rollup benefit, so it is not the contract to reach for if turning on a guaranteed paycheck is your main goal. If lifetime income is what you need, our guides to income riders and income annuities point you toward products built for that purpose.

Everything about this contract is built around a single number: a 15% bonus credited to your accumulation value the moment your premium is received, before any index gains are even calculated. That places it among the largest upfront bonuses offered on a fixed index annuity today. EquiTrust prices this contract more aggressively on the bonus side than some of its own shorter products, and in exchange asks buyers to accept a longer surrender period and somewhat lower ongoing crediting parameters. For the carrier's full history, ownership and balance sheet, see our EquiTrust company review.

Because bonus percentages and crediting terms on any FIA can shift between illustration cycles, always confirm the exact bonus and current terms with a licensed strategist on the day you apply rather than relying on a figure you read months earlier.

Like any single premium deferred annuity, your money grows tax-deferred until you take it out, meaning you owe nothing to the IRS on the gains each year the way you would on a taxable brokerage account. Withdrawals of gains are taxed as ordinary income when you take them, and the usual IRS rule applies: a distribution before age 59 and a half generally carries a 10% early withdrawal penalty on top of ordinary income tax, unless an exception applies. A tax professional can walk through how that interacts with your specific situation, since the answer depends on whether the money is qualified or non-qualified and on your broader tax picture for the year you withdraw.

How the crediting strategies work

MarketPower gives you 10 different ways to earn interest, spread across four underlying indexes plus a fixed account option. That is a wide menu compared with many single-index bonus annuities, and it lets you split a single premium across several return profiles inside one contract.

The available indexes include the S&P 500 itself, a volatility-managed version of the S&P 500 built around intraday index readings, a proprietary multi-asset index engineered to target a steady, low level of volatility, and an index tied to a curated basket of large European and U.S. companies. Each index can be credited using one or more of the standard methods used across the FIA industry:

• Point-to-point participation, where you receive a set percentage of the index's gain over the crediting period, with no ceiling on how high that gain can run before the percentage is applied
• Point-to-point cap, where your credited interest is the lesser of the index's gain or a stated maximum
• Monthly sum cap, where each month's percentage change is capped individually and the twelve results are added together
• Monthly average participation, where the index's value is averaged across each month of the year and a participation percentage applies to the average's gain
• Performance trigger, where a single interest amount is credited if the index is flat or positive at the end of the period, regardless of how large the gain was

Nine of the ten strategies reset every year; one resets every two years. A two-year reset generally trades some flexibility for a chance at a higher long-run credit, since the strategy has more time for an index to recover from a rough stretch before the reset locks in a result.

A hypothetical example of how the math works

Cap rates and participation rates are two different tools that both limit how much of an index's gain you actually keep, and it helps to see the arithmetic side by side. Say, purely for illustration, an index gains a hypothetical 8% during a one-year crediting period.

• Under a hypothetical 6% cap, you would keep the smaller of the two numbers, so you would be credited 6%, regardless of how much higher than 6% the index actually rose.
• Under a hypothetical 70% participation rate with no cap, you would keep 70% of the 8% gain, or 5.6%, calculated as 8% multiplied by 0.70.
• If that same index instead fell by 8% during the period, both strategies would credit zero. Neither a cap nor a participation rate ever turns a losing index year into a loss for you; the floor on every crediting strategy in this contract is 0%.

Real caps and participation rates on MarketPower move constantly and differ by strategy, so treat the numbers above only as a way to understand the mechanics, not as anything you should expect from this specific contract today.

One more mechanic worth understanding before you allocate a premium: once a crediting period ends and interest is added to your accumulation value, that credit is locked in permanently. A later market decline cannot take it back. This is true across every fixed index annuity, not just MarketPower, but it is worth restating here because it is the entire reason the category exists: you get to keep the gains from good years without giving them back in bad ones, in exchange for capping how much of a great year you actually capture.

The volatility-controlled indexes, explained

Two of the four indexes on this contract, the intraday-managed version of the S&P 500 and the proprietary multi-asset index, use volatility control. That means the index itself automatically dials equity exposure up or down to hold its swings near a steady target, rather than simply tracking the raw market. Because a steadier index costs an insurer less to hedge, carriers can typically offer a much higher participation rate on a volatility-controlled index than on the raw S&P 500, even though the underlying index moves less dramatically in either direction. Neither approach is inherently better. A raw S&P 500 strategy captures more of a genuine bull run; a volatility-controlled strategy tends to hold up better through choppier years, since it is designed to reduce its own swings automatically.

Because every one of these crediting rates, caps and participation levels changes on EquiTrust's own schedule and varies by state and premium size, we do not print current numbers on this page. Use the rate box above, or ask your strategist directly, for what each of the ten strategies is paying right now.

What a hypothetical illustration actually shows you

Every FIA illustration, from any carrier, works the same way: it takes a real historical stretch of index performance and replays it against the contract's current crediting terms to show what would have happened had you owned the contract during that period. That is a useful way to see the mechanics in action, but it is not a forecast, and industry regulators require it to be labeled as hypothetical for exactly that reason.

Two things are always true no matter which historical period an illustration uses. First, the guaranteed floor never lets your accumulation value fall below its starting point from index performance alone; a year where the chosen index finishes flat or negative simply credits zero, and your balance holds steady rather than declining. Second, a bonus like MarketPower's 15% is added before any of that index math begins, so every year of the illustration starts from a higher base than the bare premium.

Rather than reprint a specific illustrated path here, since the exact numbers depend on which historical stretch, which strategies and which allocation you choose, run your own scenario using our fixed annuity calculator. Ask your strategist to walk through more than one historical period, not just the strongest one, so you see a realistic range of outcomes rather than a single flattering example.

The 15% premium bonus, explained

A premium bonus sounds simple, but the details determine whether it is genuinely valuable or mostly a marketing hook. MarketPower's version checks several boxes that matter:

• The bonus is added the moment your premium is received. It is not deferred, and it does not vest gradually over a period of years the way some competing bonus products structure theirs.
• Once added, the bonus becomes an ordinary part of your accumulation value. It earns index credits and interest exactly the way the rest of your money does, starting immediately.
• One hundred percent of the bonus passes to your beneficiaries as part of the death benefit. Some bonus annuities claw back part or all of an unvested bonus if the owner dies early; this one does not.
• If you fully surrender the contract during the surrender period, the surrender charge and any market value adjustment apply to your whole accumulation value, bonus included. EquiTrust does not separately strip the bonus back out first, but you will still owe the ordinary surrender charge on the full balance.

The arithmetic on a $100,000 deposit: a 15% bonus adds $15,000 immediately, so your accumulation value starts at $115,000 before a single index credit is applied. Even in the unlikely event that every index credits exactly zero for the entire surrender period, you would still hold more than your original deposit in nominal terms, since the bonus itself is not tied to index performance.

To put the size of that head start in context, consider a hypothetical multi-year guaranteed annuity, a different type of contract entirely, paying a flat 5.5% every year with no bonus. Compounded annually, $100,000 at a hypothetical 5.5% grows to roughly $212,000 after 14 years. Working backward, it would take a contract like that a little over two and a half years just to compound its way up to the 15% head start MarketPower credits you on day one, before either contract has done anything else. That does not make MarketPower better or worse than a MYGA; the two serve different purposes and MarketPower asks for a much longer commitment. It simply shows how much ground the bonus alone covers before index performance enters the picture. Our MYGA guide and MYGA calculator let you model that side of the comparison with your own numbers.

The honest trade-off is that EquiTrust funds a bonus this large partly by trimming the ongoing crediting parameters elsewhere in the contract and by locking your money up for a longer surrender period than a comparable no-bonus FIA would require. For someone who genuinely intends to hold the contract for the full term, that trade tends to work out in the buyer's favor. For someone who might need the money back within seven or eight years, a shorter-surrender FIA without the bonus, and without the long commitment, may leave you further ahead.

Surrender schedule and liquidity

This is the section that deserves the closest read, because MarketPower's surrender terms are unusually long even within a category known for long terms.

The standard 14-year schedule

Most states use this schedule, with the surrender charge stepping down a little each year until it disappears entirely in year 15:

The reduced 10-year schedule

Seventeen states, including Alaska, Connecticut, Delaware, Idaho, Illinois, Minnesota, Montana, New Jersey, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Utah, Vermont and Washington, use a shorter, less punishing schedule instead:

If you live in one of those 17 states, the math on this product changes meaningfully in your favor. A 10-year commitment with a first-year charge in the high teens is a fairly normal ask for a bonus FIA. A 14-year commitment with a 20% first-year charge, which is what buyers in every other state face, is a much bigger ask, and it should weigh heavily in your decision.

Two mechanics apply on top of the schedule itself:

• A market value adjustment applies to any withdrawal above your 10% free amount, and to a full surrender, during the surrender period. If interest rates have risen since you funded the contract, the MVA reduces what you receive; if rates have fallen, it can increase it.
• A minimum guaranteed contract value acts as an absolute floor: your cash surrender value can never fall below 87.5% of the premiums you paid, not counting the bonus, accumulated at a guaranteed 1% to 3% each year. On a $100,000 deposit, that floor starts at $87,500 before any guaranteed interest is added, a state-mandated backstop rather than a goal to aim for.

Death benefit, waivers and free withdrawals

The features that do not make headlines are, in several ways, the strongest part of this contract.

The death benefit pays your beneficiaries the full accumulation value, bonus included, with no surrender charge and no market value adjustment subtracted, regardless of how early in the contract you pass away.

Free withdrawals let you take up to 10% of your accumulation value every year starting in year 2, with no surrender charge or MVA. In year 1, you can access interest earned in the fixed account by electronic transfer without a charge. See our overview of free withdrawals for how this compares across other annuity types.

The nursing home waiver unlocks your full accumulation value, with no surrender charge and no MVA, once you have spent 90 straight days in a nursing facility or hospital, provided that stay begins in your second contract year or any year after. It comes at no extra cost and applies automatically, though residents of California, Guam, New York, Puerto Rico and the Virgin Islands are excluded.

The terminal illness rider lets you withdraw up to 75% of your accumulation value, free of surrender charges, if you are diagnosed with a terminal illness after a one-year waiting period. This also comes at no extra cost.

Combined, these two waivers turn a 14-year commitment into something less absolute than it first appears. A serious illness or a long-term care need does not leave you stuck; it opens the door to your money without penalty. As with any annuity purchase, you also get a state-mandated free look period after your contract is issued, during which you can cancel for a full refund of premium, minus any withdrawals already taken.

Taken together, the free withdrawal, the nursing home waiver and the terminal illness rider give you three separate paths to your money that do not touch the surrender charge or the MVA at all. That matters more on a 14-year contract than it would on a shorter one, since more can happen in your life over 14 years than over 5 or 7. None of these features are unusual for a modern FIA; what stands out here is that EquiTrust includes all three at no additional cost on a contract that is already generous with its bonus.

EquiTrust's financial strength ratings

A B++ from AM Best sits in the Good tier, the fifth-highest of AM Best's 13 rating levels, two full notches below an A rating and three below A+. In its most recent review, AM Best also lowered EquiTrust's long-term issuer credit rating by a notch, pointing to a thinner capital adequacy cushion, some concentration in the company's asset holdings, and a dividend payout to its parent company that AM Best considered high. At the same time, AM Best affirmed the B++ financial strength rating itself with a stable outlook and described the balance sheet as adequate. S&P and Fitch, by contrast, both currently rate the company A- (Strong), a full grade above AM Best's assessment; the agencies weigh somewhat different factors, which is part of why their conclusions can diverge.

A rating measures the company's ability to pay claims, not whether a particular product or bonus is a good deal for you.

None of this makes EquiTrust an unsafe place for your money; B++ remains a solid rating well above the point regulators consider concerning. It does mean EquiTrust sits a step or two below carriers like North American, Midland National or the top-tier insurers many conservative buyers prefer. Your state's guaranty association adds a further backstop up to a state-set limit, which our guide to state guaranty associations breaks down by state; treat it as a safety net behind the carrier's own strength, not a reason to overlook the rating.

If a top-tier rating is a hard requirement for you, whether because of your own comfort level or because a spouse or co-owner wants the reassurance of an A or A+ grade, that alone may be reason enough to look at a different carrier before you consider the bonus. If a B++ carrier is acceptable to you and the bonus and waivers genuinely move the needle, EquiTrust's rating history shows a company that has remained solvent and has continued paying claims through more than one interest rate cycle, which is ultimately what a rating is meant to predict.

For a large deposit, splitting the premium between EquiTrust and a higher-rated carrier is a common way to capture some of the bonus while keeping most of the money with a top-tier insurer. Ask your strategist to model both a single-carrier and a split-carrier approach before you commit the full amount to any one company.

Who the MarketPower Bonus Index fits best

A strong fit if you are:

• Roughly 55 to 65 years old with $100,000 to $500,000 of qualified or non-qualified money and a genuine 10-plus year horizon
• Comfortable trading some ongoing crediting performance for a large, immediately vested premium bonus
• Living in one of the 17 states with the shorter 10-year surrender schedule, which meaningfully improves the trade-off
• Looking for downside protection with real upside potential, without needing the absolute highest participation rate available on the market
• Rolling over an IRA or 401(k) balance where continued tax deferral matters and immediate liquidity does not

A weaker fit if you:

• Need guaranteed lifetime income; there is no rider available to add one to this contract
• Are under roughly 55, or have a time horizon under 10 years
• Live in a 14-year-schedule state and are not confident you can commit to the full term, given how steep the early charges are
• Prioritize a top-tier carrier rating of A or A+ above other features
• May need more liquidity than the 10% annual free withdrawal provides within the first several years

For context, MarketPower sits at the far end of the bonus and surrender-length spectrum compared with other accumulation-focused FIAs. A contract like the Athene Performance Elite 7 trades a shorter 7-year commitment and a higher carrier rating for the absence of any upfront bonus. A contract like the F&G Power Accumulator 7 takes a similar middle path: no bonus, a shorter surrender period, and a broader menu of indexes and ETFs. Neither of those is automatically the better choice; they simply optimize for different priorities than MarketPower does. If you are drawn to MarketPower mainly for the size of the bonus, run the numbers on at least one shorter-surrender alternative before you decide the extra years are worth it.

A useful way to frame the decision is to ask what you are actually optimizing for. If the answer is "the largest guaranteed head start on day one," MarketPower is difficult to beat. If the answer is "the highest ongoing crediting rate I can get with the least amount of time locked up," a shorter-surrender, no-bonus FIA is usually the better fit, since carriers generally fund a bonus by trimming what they offer everywhere else in the contract. Neither answer is wrong; they just point toward different products, and it is worth being honest with yourself, or with your strategist, about which one actually describes your priorities before you sign anything.

Should you buy it in 2026?

EquiTrust is owned by an investor group that includes Magic Johnson Enterprises, and the company's obligations are further backed by reinsurance from Reinsurance Group of America, a large, well-established reinsurer. Neither fact changes what AM Best's rating tells you, since that rating already accounts for the company's ownership and reinsurance arrangements, but it is useful context for understanding who stands behind the contract.

If the size of the bonus, the breadth of the crediting menu and the built-in waivers outweigh the rating gap and the long surrender period for your situation, MarketPower is worth a serious look. If a top-tier rating matters more to you than a large bonus, or if your state's guaranty association limit is a concern at the premium size you are considering, it is worth cross-shopping this contract against our Athene Performance Elite 7 review and our North American Charter Plus 10 review before deciding. Our head-to-head comparison of Athene Performance Elite 7 and MarketPower Bonus Index walks through the two side by side in detail.

It is also worth asking what your state's guaranty association would cover if EquiTrust were ever unable to meet its obligations. Most states protect annuity values up to a set dollar limit per owner per company, commonly $250,000, though the exact figure and the details of what counts toward it vary by state. If your MarketPower deposit, combined with any other contracts you already hold at EquiTrust, would exceed your state's limit, splitting the money across two carriers is usually the simpler fix rather than accepting the extra exposure.

How to buy a MarketPower Bonus Index annuity

EquiTrust sells this contract only through licensed, independent insurance professionals, not directly to the public. The process itself is straightforward once you have decided the trade-offs work for you:

1. Confirm your state's surrender schedule (14 years or the reduced 10-year version) and get a current bonus and rate quote for your age and premium amount.
2. Decide how to allocate your premium across the available indexes and crediting methods, keeping the two-year strategy's longer reset in mind if you choose it.
3. Review the contract in full during your free look period, paying particular attention to the surrender schedule, the MVA language and the waiver requirements.
4. Fund the contract by check, account transfer, or a 1035 exchange if you are moving money from an existing annuity without triggering a taxable event.

Tax Free Wealth Plan is a licensed independent insurance agency, appointed with 25 companies. We can compare the MarketPower Bonus Index with other top-rated carriers side by side so you see exactly what today's bonus, caps and participation rates look like before you commit any money.