EquiTrust MarketPower Bonus Index Annuity Review (2026): Rates, Pros & Cons

Is the EquiTrust MarketPower Bonus Index a Good Annuity?

1. Product Snapshot

2. What Is the EquiTrust MarketPower Bonus Annuity?

The EquiTrust MarketPower Bonus Index is a fixed index annuity built for safe, long-horizon accumulation – not lifetime income. There is no GLWB rider, no benefit base, and no income rollup. If guaranteed income is your goal, look elsewhere – compare Athene Performance Elite, F&G Power Accumulator, or North American Income Pay Pro.

The entire pitch is built around one number: 15%. That is the current premium bonus credited on first-year deposits, added immediately to your Accumulation Value before any index crediting begins. Note the printed brochure still shows 12% – EquiTrust raised it to 15% on the May 2026 illustration we worked from. Confirm with your licensed producer that the bonus is still 15% on the day you apply.

Within EquiTrust’s FIA lineup, MarketPower sits at the most aggressive end – bigger bonus, longer surrender, more upside potential than their shorter MarketFive Index. For broader context, see our Top 10 Best FIA Companies ranking.

3. Crediting Strategies and Realistic Returns

MarketPower offers 10 crediting strategies across four indices, plus a fixed account. Here’s the current rate sheet, sorted by historical return:

Rates current as of May 2026. Subject to change. Historical returns reflect the most recent 10-year period using actual or backtested index performance – not a prediction of future returns.

The two strategies worth using

The 2-Year S&P 500 Dynamic Intraday TCA at 80% participation is the standout – the highest historical credited rate in the lineup (10.29%) and the only strategy that captures most of true S&P 500 upside (the TCA index targets the same 15% vol as the S&P itself). The tradeoff is a 2-year reset window. Most producers will not lead with this one because clients dislike the word “two-year.”

The 1-Year S&P MARC 5% ER at 160% participation is what the carrier illustration headlines, and 160% sounds spectacular. It is not. The MARC 5% targets just 5% volatility, so the index barely moves, and the 160% participation is the carrier compensating for that dampened motion. Expect 4%-8% forward returns – solid, but no miracle. View the official S&P MARC 5% ER methodology.

Strategies to skip

• 5.75% S&P 500 PTP Cap – below market. Athene Performance Elite and F&G Power Accumulator offer 7%-8.5% caps with no fee. EquiTrust charges 1% to get to 8%.
• 5.25% Performance Trigger – competitors offer 6%-8%.
• Monthly Sum Cap at 2.25% – a single -8% month wipes out a whole year of capped gains. Almost never the right call.
• Barclays Focus50 and Monthly Avg Participation – mid-single-digit returns at best. Use as diversifiers, not primary growth.
• Fixed Account at 3.25% – well below MYGA market rates of 5-5.5%. Parking spot only.

What returns can you realistically expect?

The carrier illustration projects an 8.75% annual effective rate of return over 36 years, growing 0,000 (plus the 15% bonus) into roughly .6 million. That number is not honest forecasting – it is the 2016-2025 historical sequence (an exceptionally strong equity decade) looped four times. Every FIA illustration in the industry uses some version of this trick.

A more realistic forward-looking expectation, given current participation rates and how risk-control indices actually behave, is 5%-7% annualized over a 10-year hold. Tilt the allocation toward the 2-Year TCA and you can probably nudge that 50-100 basis points higher. That is still excellent for a product with zero downside market risk and a 15% bonus baked in – it just is not 8.75%.

The guaranteed scenario is the floor: if every index credits 0% for the full surrender period, your Accumulation Value stays at 5,000 (the 87.5% Minimum Guaranteed Contract Value). You would not lose principal in nominal terms, but you’d lose 14 years of inflation. Vanishingly unlikely, but understand that “guaranteed” means exactly that, a floor.

4. The 15% Premium Bonus – Worth It or Marketing Gimmick?

Let’s be direct: 15% is one of the largest premium bonuses available in the FIA market today. Most 10-year FIAs offer 5%-10% bonuses. To find higher bonuses (20%+), you typically have to accept much longer surrender schedules, vested bonuses (where you have to wait years to “own” the bonus), or significantly worse caps and participation rates on the index side. See our full Top 20 Best Bonus Annuity Rates roundup for context.

Here’s what makes MarketPower’s bonus structure unusually consumer-friendly:

• The bonus is added immediately and is a permanent part of Accumulation Value – not a deferred or vesting bonus.
• The bonus earns index credits and interest from Day 1.
• 100% of the bonus is included in the death benefit – your heirs get the full Accumulation Value with no clawback.
• On a full surrender, the surrender charge applies to the full Accumulation Value (including bonus), but EquiTrust states “you won’t lose your bonus” – meaning the bonus is not separately clawed back.

Running the math: On a $100,000 deposit, you start with $115,000 working for you on Day 1. Even if every index credits 0% for the full 14-year surrender period, you would still be ahead of where you started in nominal terms. Compare that to a 5-year MYGA at 5.5% – over the same 14 years, $100,000 compounds to roughly $211,000. The MarketPower starting bonus essentially gives you a 4-year head start on a comparable MYGA, before any index credits are added.

The honest tradeoff: the bonus is paid for through lower ongoing caps and participation rates, plus the 14-year surrender commitment. EquiTrust is not giving away free money – they are capitalizing it across the contract’s life through reduced crediting parameters. A no-bonus, 7-year FIA with the same underlying carrier reserves might offer 200%+ participation on the MARC 5% versus MarketPower’s 160%.

For a buyer who genuinely plans to hold the contract for 10+ years, the math on the 15% bonus works in your favor. For someone who might need liquidity in 5-8 years, it does not.

5. Surrender Schedule and Liquidity Analysis

This is where MarketPower Bonus Index demands the most scrutiny. The surrender schedule is one of the longest in the FIA market, and the early-year charges are unusually punitive.

Standard 14-Year Schedule (most states)

10-Year Schedule (AK, CT, DE, ID, IL, MN, MT, NJ, NV, OH, OK, OR, PA, TX, UT, VT, WA)

The reduced-state schedule is much more reasonable. If you are in one of those 17 states, MarketPower becomes meaningfully more attractive – a 10-year commitment with a 17% Year 1 charge is in line with competitive bonus FIAs. If you are in a 14-year state, the math gets harder to defend.

Two things to know about the surrender mechanics:

1. Market Value Adjustment (MVA) applies to withdrawals over 10% and to full surrenders. If interest rates have risen since you bought the contract, the MVA reduces your cash surrender value; if rates have fallen, it could increase it. We do not have the exact MVA formula in the brochure, but EquiTrust’s MVAs are generally moderate – not as aggressive as some competitors.
2. 87.5% floor: No matter what, the Cash Surrender Value can never go below 87.5% of premiums paid (excluding bonus), accumulated at 1-3%. This is a state-mandated minimum guarantee and provides a true floor.

For comparison: Athene Performance Elite has a 7- or 10-year surrender with charges starting in the 8-9% range. F&G Power Accumulator starts at 8.3%. North American Charter Plus 10 starts in a similar range. MarketPower’s 20% Year 1 charge in 14-year states is dramatically more punitive than peers – that is the price of the 15% bonus and the long crediting horizon.

6. Death Benefit, Waivers, and Free Withdrawals

This is where MarketPower quietly shines. The non-headline features are genuinely consumer-friendly:

• Death benefit: Full Accumulation Value, including 100% of the bonus, paid to the beneficiary with no surrender charge and no MVA. This is the standard for modern FIAs but worth confirming – some carriers haircut the bonus on early death.
• Free withdrawals: Up to 10% of Accumulation Value annually after Year 1, with no surrender charge or MVA. Year 1 you can take fixed-account interest via EFT without charges. (See our overview of free withdrawals in annuities.)
• Nursing Home Waiver: If confined to a nursing home or hospital for 90 consecutive days starting in Year 2 or later, you can access the full Accumulation Value with no surrender charge or MVA. No additional cost, included automatically. Not available in CA, GU, NY, PR, VI.
• Terminal Illness Rider: If diagnosed with a terminal illness after the 1-year waiting period, you can withdraw up to 75% of Accumulation Value without surrender charges. Also no additional cost.
• Free-look period: Standard state-mandated free-look review window with 100% premium refund (minus prior withdrawals).

The waivers are real protection. A 14-year surrender feels much less scary when you know that nursing home confinement or terminal diagnosis unlocks the contract.

7. EquiTrust Financial Strength – The Honest Picture

EquiTrust holds the following ratings:

• AM Best: B++ (Good) – the 5th-highest rating on a 13-level scale. Verify current AM Best rating.
• Standard & Poor’s: A- (Strong)
• Fitch: A- (Strong)

For full transparency: AM Best downgraded EquiTrust’s Long-Term Issuer Credit Rating to “bbb” from “bbb+” in their most recent action, citing a weakened Best’s Capital Adequacy Ratio (BCAR) score, high asset concentrations, and a high dividend payout ratio to the holding company. The Financial Strength Rating of B++ was affirmed with a stable outlook, and the balance sheet was categorized as “adequate.”

What does this mean for buyers? AM Best’s B++ is one notch below the A- threshold many producers use as a minimum, but EquiTrust is well above the regulatory minimum and is rated A- by both S&P and Fitch – agencies that focus more on capital strength than AM Best’s heavier weighting of business profile. EquiTrust manages over $33 billion in assets, holds a 109% solvency ratio, and Magic Johnson Enterprises holds a controlling interest. The company is solvent, well-capitalized, and has been earning Ward’s 50 recognition for top financial performance for ten consecutive years.

Our honest take: EquiTrust is not your weakest carrier, but it is not your strongest either. For a conservative client placing a large portion of their retirement assets, we’d suggest splitting between EquiTrust and a higher-rated carrier (Athene A+, MassMutual A++, Nationwide A+). For a more typical allocation, EquiTrust’s ratings are well within the acceptable range – and the product features compensate for the rating gap. See our full EquiTrust company review for a deeper dive on financials and product line.

8. What We Like and What Gives Us Pause

9. Who This Product Is Best For (and Who Should Skip It)

Strong fit:

• A 55-65-year-old holding $100K-$500K in qualified or non-qualified money, with a 10+ year accumulation horizon and no need for liquidity beyond the 10% annual free withdrawal.
• Someone who wants downside market protection plus meaningful equity-linked upside and is not fixated on getting the absolute highest participation rates.
• Buyers in one of the 17 reduced-charge states (TX, IL, OH, PA, etc.) – the 10-year schedule changes the value equation significantly.
• Anyone particularly drawn to a large premium bonus and willing to trade some ongoing crediting performance to lock it in.
• IRA rollovers from someone who wants to keep their tax-deferral while adding principal protection.

Poor fit:

• Anyone needing guaranteed lifetime income – no income rider exists on this product. Compare our best FIAs with income riders instead.
• Buyers under age 55 or with a horizon under 10 years – the 14-year surrender (or even 10-year) commitment is too long.
• Anyone in a 14-year-schedule state who is not 100% sure they can hold the contract – the 20% early surrender charge is brutal.
• Buyers focused purely on maximum accumulation who do not value the bonus – they would get better long-term performance from a shorter-surrender FIA. See our best FIAs for the accumulation phase.
• Clients wanting top-tier carrier ratings (A or A+) – pair them with MassMutual, Nationwide, or Athene instead.
• Anyone who might need significant liquidity within 7 years.

10. Bottom Line Verdict

MarketPower Bonus Index is exactly what it advertises: a high-bonus, accumulation-focused FIA built for clients with long horizons and patience. The 15% premium bonus is among the best you’ll find anywhere, the death benefit is clean, and the included waivers give you real escape hatches if life takes a turn. EquiTrust is not a top-rated carrier, but it is solvent, well-capitalized, and has been performing consistently for over a decade.

The product loses points on the 14-year surrender period in most states, the below-market 5.75% S&P 500 cap, the 5.25% Performance Trigger, the absence of an income rider, and the gap between the illustration’s projected returns and what we think is realistically achievable. If you are in a 10-year state, can commit to the full term, and allocate primarily to the 2-Year Dynamic Intraday TCA strategy, this product becomes meaningfully more attractive – closer to 4 stars.

Would we recommend it? Yes, for the right client – someone with a long horizon, real conviction about not needing liquidity, a strong preference for a large upfront bonus over higher ongoing crediting rates, and willingness to allocate to the 2-year strategy. For most other clients, we would compare it head-to-head against Athene Performance Elite, F&G Power Accumulator, and North American Charter Plus 10 before pulling the trigger.