Annuities 101
Learn how annuities can help you create a steady, reliable income stream and approach your retirement with confidence.
What is an annuity?
An annuity is a contract between you and an insurance company designed to help you grow and protect your savings.
Backed by the financial strength and claims-paying ability of the issuing company, annuities are one of the only stable money products that can both guarantee the protection of hard-earned dollars and generate income that cannot be outlived.
What are the main benefits of an annuity?
Annuities can grow future income and protect it from market volatility and risk.
Growth potential
Take advantage of Index-linked strategies for growth with annual reset and lock-in features—without directly investing in the market.
Risk management
Protect your principal, interest, and gains from the risk of potential market uncertainty—even during economic downturns.
Tax deferral
Pay no taxes until withdrawal. Watch your interest earnings increase and ensure more of your money continues working for you.
Steady income
Reduce financial stress and build security. Receive a guaranteed and predictable stream of income payments that you won’t outlive.
How do annuities work?
You make a one-time payment or a series of payments to an insurance company, and in return the company provides guaranteed income—either for a set period of time or for the rest of your life. Depending upon the type of annuity, your money may grow at a fixed rate or based on market performance.
Your money remains tax-deferred until you withdraw it. When your distribution payments begin, they will be made based on your age, the annuity’s accumulated value, and other factors.
Could an annuity help close the gap in your retirement income plan?
When might an annuity be right for you?
___
Choose the annuity that works for you
Fixed index annuities (FIA)
Take advantage of a powerful combination of benefits that allow for potential index-linked growth, principal protection, tax-deferred growth, and guaranteed income over a specific period — including the option for lifetime income.
Fixed annuities
Protect your principal, get increased access options and tax-deferred growth, and take care of loved ones. The fixed annuity allows the accumulation of interest based on a fixed rate determined at the beginning of the contract.
Explore insights & information
American Equity contracts are only sold through independent agents. Please contact your state insurance department to see if there is an independent insurance agent in your area appointed to sell American Equity annuity contracts. 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 consider 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.
Annuity features, benefits, and limitations vary by product and state. Please review the product sales brochure and disclosure for additional details.