Fixed Index Annuity (FIA)
Fixed Index Annuity (FIA)
Balance when you need it most. BalanceShield 10
If you’re looking to strike a balance of growth and protection for your nest egg in the face of an ever-changing financial landscape, consider how the BalanceShield 10 fixed index annuity may fit your portfolio needs.
It offers a powerful combination of benefits designed to not only protect but grow your retirement assets in any market condition.
Key Benefits in BalanceShield 10
Protection when needed
Guaranteed principal protection, so your contract value will never decline due to market decreases.
BalanceShield 10 offers a death benefit that may include Gains-to-Date credits for beneficiaries. Multiple payment options are available for named beneficiaries or surviving joint owners. May also avoid probate.
Balanced Interest Strategies
American Equity’s BalanceShield 10 gives you multiple index-linked strategy options, known as balance interest strategies, that all offer initial guaranteed interest credits—the Floor. Then, you have the opportunity to capture additional interest credits from index growth through the strategy gain percentage, based on the Core & More steps described below.
You will receive interest based on the Floor or the strategy gain percentage – whichever is higher.
Floor
Strategy Gain Percentage
Floor Guarantee
Core Crediting
Step 3: Subtract the spread
Spread is multiplied by the number of years in the strategy term when calculating the strategy gain percentage.
More Interest Boost
*Rates are subject to change please see latest rate sheet for more information.
**The interest boost is guaranteed for the strategy term.
With BalanceShield 10 you have choices to lock in the index price, automatically at the end of the strategy term or by applying the index lock at any point before the end of the strategy term. Here’s how they work.
- Ending index price automatically used to calculate interest credits at the end of the strategy term
- No action required to receive this crediting
- Negative index changes for strategy term will not result in a loss of contract value
- Index lock is available on all strategies once per strategy term and can be applied to lock in the index price for the strategy term
- This additional control can help address concerns over downturns prior to the end of the strategy term
- Once activated, the locked index price is used to calculate any interest credits at the end of the strategy term and any Gains-to-Date credits during the strategy term
BalanceShield 10 gives you the ability to take withdrawals on your terms — before the end of the strategy term — without leaving interest on the table.
You receive a Gains-to-Date credit when you withdraw funds from a balanced interest Strategy prior to the end of the strategy term.
- Beginning in year two, Gains-to-Date credits on withdrawals of up to 10% of the contract value each year are calculated using the full strategy gain percentage.
- Gains-to-Date credits on first year withdrawals and withdrawals in excess of 10% of the contract value* in a year are calculated using a prorated strategy gain percentage.
- Prorated Floor calculation will be applied as Gains-to-Date credit if amount is higher than strategy gain percentage.
Gains-to-Date credits are applied to your strategy value immediately after the withdrawal.
Protection when needed
Guaranteed principal protection, so your contract value will never decline due to market decreases.
BalanceShield 10 offers a death benefit that may include Gains-to-Date credits for beneficiaries. Multiple payment options are available for named beneficiaries or surviving joint owners. May also avoid probate.
Balanced Interest Strategies
American Equity’s BalanceShield 10 gives you multiple index-linked strategy options, known as balance interest strategies, that all offer initial guaranteed interest credits—the Floor. Then, you have the opportunity to capture additional interest credits from index growth through the strategy gain percentage, based on the Core & More steps described below.
You will receive interest based on the Floor or the strategy gain percentage – whichever is higher.
Floor
Floor Guarantee
Strategy Gain Percentage
Core Crediting
Step 3: Subtract the spread
Spread is multiplied by the number of years in the strategy term when calculating the strategy gain percentage.
More Interest Boost
Floor
Strategy Gain Percentage
Floor Guarantee
Core Crediting
Step 3: Subtract the spread
Spread is multiplied by the number of years in the strategy term when calculating the strategy gain percentage.
More Interest Boost
*Rates are subject to change please see latest rate sheet for more information.
**The interest boost is guaranteed for the strategy term.
With BalanceShield 10 you have choices to lock in the index price, automatically at the end of the strategy term or by applying the index lock at any point before the end of the strategy term. Here’s how they work.
- Ending index price automatically used to calculate interest credits at the end of the strategy term
- No action required to receive this crediting
- Negative index changes for strategy term will not result in a loss of contract value
- Index lock is available on all strategies once per strategy term and can be applied to lock in the index price for the strategy term
- This additional control can help address concerns over downturns prior to the end of the strategy term
- Once activated, the locked index price is used to calculate any interest credits at the end of the strategy term and any Gains-to-Date credits during the strategy term
BalanceShield 10 gives you the ability to take withdrawals on your terms — before the end of the strategy term — without leaving interest on the table.
You receive a Gains-to-Date credit when you withdraw funds from a balanced interest Strategy prior to the end of the strategy term.
- Beginning in year two, Gains-to-Date credits on withdrawals of up to 10% of the contract value each year are calculated using the full strategy gain percentage.
- Gains-to-Date credits on first year withdrawals and withdrawals in excess of 10% of the contract value* in a year are calculated using a prorated strategy gain percentage.
- Prorated Floor calculation will be applied as Gains-to-Date credit if amount is higher than strategy gain percentage.
Gains-to-Date credits are applied to your strategy value immediately after the withdrawal.
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Rates, withdrawal charge period, and strategy term period guarantees are set at issue and subject to change without notice.
Annuity Contract and riders issued under form series ICC24 BASE-SP-IDX, ICC24 IDX-15-10, ICC24 E-BICS, ICC24 R-EBR and state variations thereof. Availability may vary by state
1Initial Floor is 1% and is set for the withdrawal charge period. Guaranteed minimum Floor will never be less than 0%. Subject to change. Contracts will receive the declared Floor in effect on the date the contract is issued. The Floor is an annualized percentage. To calculate interest credits at the end of the strategy term, we multiply the Floor by the number of years in the term. To calculate Gains-to-Date credits prior to the end of a strategy term, we multiply the Floor by the elapsed strategy term. Rates are subject to change. Please see latest rate sheet for more information.
Under current tax law, the Internal Revenue Code already provides tax deferral to qualified money. There is no additional tax deferral benefit if you purchase the contract through a tax qualified plan, such as an IRA or Roth IRA, and you should only purchase the contract for its other benefits.
Earnings are taxable as ordinary income when distributed. Surrender charges may apply to excess withdrawals that exceed 10% annual Free Withdrawal available under the contract. You may be subject to a 10% federal penalty if you make withdrawals before age 59½. Any information regarding taxation contained herein is based on our understanding of current tax law, which is subject to change and differing interpretations.
The index lock date is the day we process a request to exercise an Index Lock for an indexed strategy. We will process the request on the business day we receive the notice to exercise the Index Lock. If we receive the notice on a day that is not a business day or after a business day has ended, the notice is considered to be received by us on the next
business day.
Business day is a date the Company is open for business, which is generally a day the New York Stock Exchange (NYSE) is open for trading. A business day ends at 4:00 p.m. Eastern Time.
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.
Index Lock is only available if the Strategy Gain Percentage is greater than the result of the Floor multiplied by the term length.
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.
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.