Built on Integrity. Designed to Help Grow Assets.
As life changes, so do financial goals. For those nearing retirement, building your nest egg can be a top priority. The AssetShield Fixed Index Annuity offers added growth opportunities to take retirement dollars to new heights while protecting assets to help keep increases secure.
In addition to our traditional fixed index annuity benefits, like principal protection from index decreases, tax-deferred growth potential and free withdrawals, the AssetShield also offers:
Product Features Include:
Principal can be diversified across fixed and indexed strategies.
- Fixed Interest Strategy – A fixed interest rate, set at issue, that is guaranteed for the contract year and can change annually.
- Fixed Index Strategy – Interest growth opportunities linked to index performance without being directly invested in stocks or bonds to keep your money secure.
Indexed Crediting Strategies
The AssetShield offers multiple crediting strategy options to choose from based on individual goals and conditions.
- Monthly Point to Point – Interest credits calculated based on changes in index from point to point in a contract year, and credited based on changes in price.
- Annual Point to Point – Each contract anniversary, the index price is compared to the year's previous and credited based on changes in price.
- 2-Year Point to Point – On the contract anniversary at the end of end a two-year term, the index is compared to the beginning of the term.
All index allocation options use industry trusted S&P 500® indices.
- S&P 500® – Consists of 500 leading U.S. stocks and is a common benchmark of the stock market (Ticker: SPX). The S&P® 500 Index is widely regarded as the best single gauge of large-cap U.S. equities.
- S&P 500® Dividend Aristocrats® Daily Risk Control 5% Excess Return Index – Volatility control index that consists of the S&P 500 members that have consistently increased dividends every year for at least 25-consecutive years (Ticker: SPXD5UE).
This index crediting strategy is designed to provide added stability by limiting risk exposure and measuring the market performance on a daily basis using the most consistent, dividend-producing companies on the S&P 500 Index.
Additionally, the Excess Return is the total return of the risk control index minus a risk-free rate such as a 3 month Treasury Bill.
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.
Our product design allows the opportunity to lock in any interest credited to the contract without risk of losing money when an index decreases, on annual or bi-annual basis.
Access and Liquidity Features
The AssetShield has a number of built in liquidity features and access options for ongoing income security.
- Rate Integrity Rider: This rider allows for a waiver of surrender charges upon termination of the annuity contract. During the waiver election period, American Equity will waive surrender charges if we declare a cap or participation rate for any crediting strategy included in the Rate Integrity Rider that is less than or equal to the surrender charge waiver rate. The surrender charge waiver rate for each crediting strategy is determined at the date of purchase.
- Free Withdrawals: After the first contract year, the opportunity to take withdrawals up to 10% of the Contract Value without expense.
- Withdrawal and Surrender: 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.
- Contract Maturity: Distribution from the annuity is set to begin at a maturity date established by the owner or specified in the contract.
- Nursing Care Rider: Accessible to annuitants receiving qualified care.
- Terminal Illness Rider: If, after the first year, the annuitant is diagnosed with a terminal illness, a 100% Free Withdrawal is accessible.
The content is provided for informational purposes only and does not constitute advice. For specific details on how this may apply to your personal situation, contact your personal financial advisor or insurance agent for more details. American Equity contracts are only sold through independent agents. Please contact our home office Agency Services department at (888) 221-1234 option 3, or your state insurance department to see if there is an independent insurance agent in your area appointed to sell American Equity annuity contracts.
American Equity Investment Life Insurance Company® does not offer legal, investment, or tax advice. 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.
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 59 ½.
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.
The "S&P 500®" is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by American Equity Investment Life Insurance Company (“AEL”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed to SPDJI and sublicensed for certain purposes by AEL. AEL's products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and such parties make no representations regarding the advisability of investing in such product(s) and have no liability for any errors, omissions, or interruptions of the S&P.