Fixed Index Annuity (FIA)
Fixed Index Annuity (FIA)
Discover the benefits of growth and accumulation
American Equity’s flagship accumulation fixed index annuity series provides growth-minded opportunities to build your nest egg, without sacrificing any of their premium payments.
AssetShield Series
Allocation Options - Premium Allocations
- Fixed Interest Strategy: A fixed interest rate, set at issue, that is guaranteed for the contract year and can change annually.
- Indexed Crediting Strategies: Interest growth opportunities linked to index performance without being directly invested in stocks or bonds to help keep your money secure.
Payments received after the initial premium automatically go into the fixed interest strategy. The contract values may be reallocated on the contract anniversary between strategies subject to these minimums:
- The minimum allocation for each value is $1,000.
- The minimum transfer to select a new value is 10% of the contract value.
Key Benefits in the AssetShield Series
The AssetShield BONUS 10 (AssetShield BONUS 9 in CA) offers a premium bonus that allows you to put money to work from the start. Credited on all first year premiums, the bonus increases the contract value by 14% of the premium paid. After the first contract year, an increasing percentage of the bonus vests according to the premium bonus vesting schedule.
The Premium Bonus on first-year premium payments vests over a 10-year period. Beginning year two, 10% of the bonus becomes guaranteed annually until 100% vested at the end of the tenth contract year.
In the event of death, 100% of the bonus is vested as of the contract date and the surviving owner or beneficiary receives the entire contract value.
Premium Bonus Vesting Schedule
0
10
20
30
40
50
60
70
80
90
100
The Performance Rate Rider on the AssetShield fixed index annuity offers numerous ways for growth potential. On available strategies, an increase in cap or participation rate can help with meeting a wide variety of accumulation goals. This rider is available for a fee that cannot change for the surrender charge period.
Cap Rate
Participation Rate
Free Withdrawals
Withdrawal and Surrender Charges
For partial withdrawal or surrender taken during the surrender charge period, a percentage deduction will be taken according to the established withdrawal and surrender charge schedule.
- AssetShield 10 has a 10-year surrender charge schedule
- AssetShield 9 has a 9-year surrender charge schedule
- AssetShield 7 has a 7-year surrender charge schedule
- AssetShield 5 has a 5-year surrender charge schedule
Contract Maturity
Enhanced Benefit Rider
This no-fee rider is automatically included for owners age 75 and under at issue and includes both a Qualified Nursing Care Benefit and Terminal Illness Benefit.
- Qualified Nursing Care Benefit: After the first contract year, one additional free withdrawal of up to 100% of the contract value is allowed if the owner is confined in a qualified care facility for a minimum of 90 days. Confinement must begin after the contract issue date and written proof is required from both the qualified care facility and recommending physician.
- Terminal Illness Benefit: After the first contract year, one additional free withdrawal of up to 100% of the contract value is allowed if the owner is diagnosed with a terminal illness. Diagnosis must occur after the contract is issued and written proof with supporting documentation is required from a qualified physician.
The AssetShield BONUS 10 offers a premium bonus that allows you to put money to work from the start. Credited on all first year premiums, the bonus increases the contract value by 13% of the premium paid. After the first contract year, an increasing percentage of the bonus vests according to the premium bonus vesting schedule.
The Premium Bonus on first-year premium payments vests over a 10-year period. Beginning year two, 10% of the bonus becomes guaranteed annually until 100% vested at the end of the tenth contract year.
In the event of death, 100% of the bonus is vested as of the contract date and the surviving owner or beneficiary receives the entire contract value.
Premium Bonus Vesting Schedule
The Performance Rate Rider on the AssetShield fixed index annuity offers numerous ways for growth potential. On available strategies, an increase in cap or participation rate can help with meeting a wide variety of accumulation goals. Also, how interest is credited on the rider is based on index performance and determined by a chosen calculation method. Plus, a locked-in rider fee helps with control on potential interest credits and alleviates the risks of unforeseen surprises.
- Increase cap, participation rate or replacement rate on available strategies for more accumulation options that can align with a wide variety of goals.
- Locked-in rider fee for control on potential without risk of surprise.
- How interest is credited, based on index performance, is determined by the chosen calculation method.
- Replacement Rate: The three highest monthly index changes are replaced with the replacement rate declared at the beginning of each contract year (only available on Monthly Point to Point).
- Cap Rate: The maximum rate to be used in determining any interest credits.
- Participation Rate: Percentage that determines how much of any gain in the index will be credited to the contract.
Free Withdrawals
Withdrawal and Surrender Charges
Contract Maturity
Enhanced Benefit Rider
This no-fee rider is automatically included for owners age 75 and under at issue and includes both a Qualified Nursing Care Benefit and Terminal Illness Benefit.
- Qualified Nursing Care Benefit: After the first contract year, one additional free withdrawal of up to 100% of the contract value is allowed if the owner is confined in a qualified care facility for a minimum of 90 days. Confinement must begin after the contract issue date and written proof is required from both the qualified care facility and recommending physician.
- Terminal Illness Benefit: After the first contract year, one additional free withdrawal of up to 100% of the contract value is allowed if the owner is diagnosed with a terminal illness. Diagnosis must occur after the contract is issued and written proof with supporting documentation is required from a qualified physician.
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Annuity Contracts and riders issued under form series ICC22 BASE-IDX, ICC22 BASE-IDX-B, ICC22 IDX-11-10, ICC22 IDX-10-10, ICC22 IDX-10-7, ICC22 IDX-10-5, ICC20 E-PTP-C, ICC20 E-PTP-PR, ICC20 E-MPTP-C, ICC16 R-MVA, ICC20 R-EBR, and state variations thereof. Availability may vary by state.
Bonus available on 1st year premiums. Each year after the 1st contract year, you become vested in a percentage of the bonus, until 100% vested at the end of the 10th contract year. Vested amounts of the bonus are the amounts not forfeited as a result of an early withdrawal or surrender. Bonus, surrender charges, and vesting schedules may vary by state. See brochure and disclosure for details. Surrender charges may be higher in contracts with a premium bonus than in contracts without a premium bonus and may exceed premium bonus. Caps and participation rates may also be lower in contracts with a premium bonus.
Withdrawal charges may apply to an annuity. Interest earnings in an annuity are not taxed until withdrawn. Annuity withdrawals and distributions may be subject to income tax and, if withdrawals or distributions are taken prior to age 59½, a 10% federal penalty tax may apply.
Guarantees are based on the financial strength and claims paying ability of American Equity and are not guaranteed by any bank or insured by the FDIC.
This material is for informational purposes only, and is not a recommendation to buy, sell, hold or rollover any asset. It does not take into account the specific financial circumstances, investment objectives, risk tolerance, or need of any specific person. In providing this information American Equity Investment Life Insurance Company is not acting as your fiduciary as defined by the Department of Labor. American Equity does not offer legal, investment or tax advice or make recommendations regarding insurance or investment products. Please consult a qualified professional.
Market Value Adjustment (MVA) applies to partial withdrawals that exceed the free withdrawal amount allowed and surrenders occurring during the surrender charge period.
Possible interest credits for money allocated to an index-linked crediting strategy are based upon performance of the specific index; however, fixed index annuities are not an investment, but an insurance product, and do not directly invest in the stock market or the index itself.
This is not a comprehensive overview of all the relevant features and benefits of the AssetShield Series fixed index annuity products. Please read the sales brochure and disclosure for complete details and limitations.