PAYING AGENT AGREEMENT

       AGREEMENT made as of the 26th day of April, 2001, by and between,
Equitrust Marketing Services, LLC, a Delaware limited liability company
("Distributor"); and EquiTrust Life Insurance Company. ("Agent"), a licensed
insurance company.

                                   WITNESSETH

       WHEREAS, Career Agents of Agent, who are also registered representatives
of Distributor ("Representative"), receive commissions for the sale of EquiTrust
Life Insurance Company variable insurance products (the "Contracts") to the
public through Distributor; and

       WHEREAS, Agent intends to perform certain administrative functions,
including the payment of commissions on behalf of Distributor.

       NOW, THEREFORE, in consideration of their mutual promises, Distributor
and Agent hereby agree as follows:

1.     PAYMENT OF COMPENSATION AND EXPENSES

       a.     COMPENSATION FOR SALES OF THE CONTRACTS. Agent shall pay
              commissions on behalf of Distributor pursuant to Section 11 of the
              Underwriting Agreement between Agent and Distributor and will
              maintain the books and records reflecting such payments in
              accordance with the requirements of the Securities Exchange Act of
              1934, as amended (the "1934 Act"), on behalf of Distributor.
              Distributor shall not be liable for any losses resulting from
              commissions paid on premiums which are not received and retained
              by Agent.

       b.     NO RIGHTS TO COMPENSATION. Agent shall have no right to
              compensation for the performance of any activities under this
              Agreement. No Representative shall have any interest in this
              Agreement or right to any compensation to be paid to or on behalf
              of Distributor hereunder.

2.     PERFORMANCE OF SERVICES

       a.     PURELY MINISTERIAL SERVICE. Agent represents that the making of
              payments by Agent to the Representatives on behalf of Distributor
              shall be performed as a purely ministerial service. Agent
              represents that any additional activities it performs on behalf of
              Distributor under this Agreement shall be limited to the
              ministerial acts of calculating commissions, making and keeping
              records, and reporting functions.




       b.     BOOKS AND RECORDS. Payments by Agent to the Representatives shall
              be properly reflected on the books and records of Distributor.
              Distributor shall retain responsibility for the same recordkeeping
              requirements which would be applicable to it if the payments were
              made directly by Distributor.

       c.     ACCESS TO RECORDS. Agent represents that any books or records it
              maintains on behalf of Distributor pursuant to this Agreement
              belong solely to Distributor and, at the request of Distributor,
              shall be made available to Distributor for its use or for
              inspection by any state, federal, or other regulator.

       d.     SUPERVISION AND COMPLIANCE. As the principal underwriter for the
              Contracts, Distributor shall retain full responsibility for and
              shall continue to perform the supervision, compliance, and similar
              functions it currently undertakes.

       e.     SECURITIES ACTIVITIES. Distributor has and assumes full
              responsibility for the securities activities of all persons
              engaged directly and indirectly in its securities operations, each
              such person being an "associated person" with Distributor, as
              defined in Section 3(a)(18) of the 1934 Act and, therefore, a
              person for whom the Distributor has full responsibility as
              contemplated by Section 15(b)(4)(E) of the 1934 Act.

       f.     ADDITIONAL REQUIREMENTS. In all dealings with or on behalf of the
              Distributor, with respect to the subject matter of this Agreement,
              Agent agrees to comply with all applicable provisions of
              Securities Release No. 8389 under the 1934 Act and the terms and
              conditions of the SENTRY INSURANCE A MUTUAL COMPANY No Action
              Letter dated September 6, 1987, as though it is a person
              associated with Distributor and for purposes of the Agreement
              hereby agrees to be so associated with Distributor.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their authorized officers designated below as of the date specified
above.

                  DISTRIBUTOR

                  By: /s/ Dennis M. Marker
                     -----------------------------------------------------------

                  Dennis M. Marker,
                  Vice President - Investment Administration

                  AGENT

                  By: /s/ William J. Oddy
                     -----------------------------------------------------------

                  William J. Oddy,
                  Chief Executive Officer and Director