Episode 84: EquiTrust SmartBoost Index Annuity Review

The annuity industry doesn’t change often. But when something new comes along, it’s worth paying attention. The EquiTrust SmartBoost Index Annuity is one of those innovations. Built in partnership with Genesys—the same company that launched the first indexed annuity back in 1995—it’s designed to give retirees both growth potential and strong guarantees.

In this post, I’ll break down what makes this annuity different, how it works, and some examples of how it can fit into real retirement plans.

Who Is EquiTrust?

EquiTrust is a company I’ve worked with for years. They’ve earned strong ratings from the major agencies:

• • A- from two of the three largest rating companies

• • B++ from AM Best (likely to be upgraded in the future)

Beyond letter grades, EquiTrust also shows strength in two other key areas:

• • Risk-Based Capital (RBC): Higher than many top-rated carriers

• • Solvency Ratio: Stronger than several A-rated insurers

This means the company has the financial strength to support policyholders for the long run.

Core Features of the EquiTrust SmartBoost Index Annuity

Here are the basics of this new annuity:

• • Single Premium Only: One deposit, no add-ons later

• • Minimum Investment: $10,000

• • Term Length: 10 years

• • Issue Ages: From birth up to age 80

• • No Fees
    

• • Free Withdrawals: 7% of the original premium each year (after year 1)

• • RMD Friendly: No issues with required minimum distributions

• • Health Waivers: Nursing home and terminal illness access with no penalty

These features make it flexible for retirement income planning and also provide safety nets in case of health challenges.

The SmartBoost: Not a Bonus, But a Different Kind of Guarantee

One of the most unique features is the “Boost.” It’s not the same as a bonus, and that’s an important difference.

Bonus Annuity:

• • Gives you extra money up front

• • Lowers your growth potential (caps and participation rates are reduced)

Boost Annuity:

• • Keeps your crediting strategies competitive

• • Adds a 40% guaranteed growth by the end of the term

• • That 40% also applies to the death benefit on day one
    

Here’s a simple table to show the difference:

Feature	Bonus Annuity	SmartBoost Annuity
Extra Funds	Upfront “bonus”	4% simple interest added yearly
Growth Potential	Lowered (caps reduced)	Higher (competitive caps)
Death Benefit	Standard	Immediate 40% boost (5-year payout option)

This is why the SmartBoost is so innovative—it lets you keep strong growth potential without sacrificing guarantees.

Growth Options Inside the Contract

The annuity offers a range of crediting strategies, most tied to the S&P 500:

• • Fixed interest rate (guaranteed growth if you don’t want to take index risk)

• • 1-year point-to-point with cap rate
    

• • 1-year point-to-point with participation rate
    

• • Performance Trigger: If the S&P 500 is even one point higher at the end of the year, you earn the full cap rate

• • S&P 500 Dynamic Intraday (newer, less proven index)
    

I like that this product sticks closely to the S&P 500. In my experience, it’s more reliable than many of the “proprietary” indexes that companies create.

Real-World Examples

Let’s look at a few scenarios, all assuming zero growth from the market. That’s unlikely, but it helps show how strong the guarantees are.

Example 1: Legacy Planning

• • Investor: 65-year-old, $100,000 premium

• • Outcome:
    
    • • Death benefit available immediately: $140,000 (40% boost)
    • • Beneficiaries can take $140,000 over 5 years, or $100,000 lump sum

Even with no growth, heirs receive significantly more than was put in.

Example 2: Retirement Withdrawals

• • Investor: $100,000 premium, age 65

• • Withdrawals: $7,000/year starting in year 2 (based on premium, not account value)

• • 10-Year Outcome:
    
    • • $63,000 in withdrawals taken
    • • $66,000 still left in the account
    • • Total value received: ~$129,000

This happens with no market growth, no fees, no risk.

Example 3: Roth Conversion Strategy

• • Investor: Couple with $175,000 in an IRA and $350,000 brokerage account

• • Plan: Move IRA into SmartBoost and pay taxes with brokerage funds

• • Outcome:
    
    • • $175,000 IRA grows to guaranteed $245,000 (40% boost)
    • • Taxes covered by non-qualified funds
    • • Net worth increases by ~$28,000 even with zero growth
    • • All future earnings are tax-free inside the Roth

For higher-income retirees, the flexibility to convert gradually over time is a major advantage.

Why This Innovation Matters

The EquiTrust SmartBoost Index Annuity combines three things retirees often want but rarely get together:

• • Growth Potential: Competitive caps and participation rates

• • Predictability: 7% withdrawals on original premium, not shrinking account values

• • Guarantees: 40% boost to death benefit and account value over 10 years

This product can fit for people who:

• • Want predictable income without losing growth potential

• • Need a strong legacy plan without qualifying for life insurance

• • Are considering Roth conversions and want flexibility