When you purchase Market Shield Plus your funds are initially allocated to the Fixed Allocation. There are four Index Points per calendar year. You have the opportunity to adjust your fund allocations on those dates. An Index Allocation Period runs from an Index Point in one calendar year to the same Index Point in the next year. In order to earn interest in an indexed allocation, your funds must remain there for a complete Index Allocation Period.

Market Shield Plus offers four Index Points per calendar year:

  • Index Point 1:  3rd Friday in March
  • Index Point 2:  3rd Friday in June
  • Index Point 3:  3rd Friday in September
  • Index Point 4:  3rd Friday in December

Allocation changes may only be made on these four dates.

On the date of purchase (Issue Date), your funds will be automatically placed in the Fixed Allocation. From the Issue Date of your contract until the first Index Point after the Issue Date, you will earn a competitive interest rate on your funds. After this time, your funds will then be allocated to the Index-Linked options as noted on your application.

Please note that if you choose to leave your funds in the Fixed Account beyond the first Index Point following your Issue Date, the interest rate will be reduced to the current interest rate (as determined by the Company). 

Account Value 

The Account Value is equal to the single premium plus the premium bonus, plus interest credited, less any partial surrenders, and any rider charges. Initially, the Account Value is allocated to the fixed allocation. On subsequent Index Points, the Account Value will be reallocated between fixed and indexed allocations as indicated on the application.

Cash Value

The Cash Value is the amount available when the annuity contract is fully surrendered. It is equal to the Account Value less any unvested bonus and less a surrender charge.The surrender charge is equal to the Account value less the unvested premium bonus, times the applicable percentage from the table on the reverse side.


Market Shield Plus
is designed to give you flexibility and control. 

Market Shield Plus is a single premium deferred annuity with fixed and index-linked options underwritten by Federal Life Insurance Company (Mutual). This brochure is not a contract. Refer to the policy for complete terms and conditions. Federal tax penalties may be imposed upon certain transactions. Review your personal tax situation and your use of annuities with your attorney or tax advisor.

Index-linked returns do not include the portion of returns generated by the underlying index that come from dividends. The elements used in determining the interest rate from the index are not guaranteed after the first Contract Year and may be changed by the Company, subject to the guarantees in the Contract. Any such changes affect the return.