How It Works

Welcome to Your Destination 

A lot can happen on the journey to retirement. Changing conditions shouldn’t mean a change of course.

The Destinations fixed index annuity protects your money while letting you choose how you can grow assets using a fixed rate, as well as exclusive index-linked crediting strategy options.

Crediting Strategies

• Fixed Interest Strategy – A fixed interest rate is set at contract issue and guaranteed for a set period of time.
•  S&P 500 NeXt Monthly Point to Point with Replacement Rate
 – The three highest monthly S&P 500® index changes are replaced with the replacement rate declared at the beginning of each contract year.
• BofA Destinations Index Annual Point to Point with PR – On each contract anniversary, interest credits are calculated based on the previous year's index price. The interest credit is based on changes in the index price from point to point. A participation rate is applied to the interest credit calculation. 
• BofA Destinations Index 2-Year Point to Point with PR – On the contract anniversary at the end of a two-year term, the index price is compared to the term's beginning index price. The interest credit is based on changes in the index price from point to point. A participation rate is applied to the interest credit calculation. 
(PR=Participation Rate)

Multiple Indices 

  • BofA Destinations Index™: American Equity’s exclusive volatility controlled multi-asset index was developed in collaboration with Bank of America. This index aims to deliver stability in many market conditions with a target volatility level of 5%. The dynamic design balances risk and adjusts toward recently outperforming assets across U.S. equities, U.S. treasuries and Gold futures. Transparent and trackable results can be found by viewing the ticker symbol [BOFADST5 on Bloomberg].
  • S&P 500® Index: A benchmark index of large U.S. publicly-traded companies, widely regarded as one of the best representations of large-cap U.S. equities. It's one of the most commonly followed indices, capturing approximately 80% coverage of available market capitalization. 

Access and Liquidity Features

 

Destinations fixed index annuity has a number of built-in features and 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 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, contract owners have the opportunity to take withdrawals up to 10% of the Contract Value without expense.
Withdrawal and Surrender: For partial withdrawal above the free withdrawal, or surrender taken during the surrender charge period, a percentage deduction will be taken out according to the established withdrawal and surrender charge schedule.
• Nursing Care Rider: After the first contract year, a one-time free withdrawal of up to 100% of the contract value is allowed if the owner is confined to a qualified nursing facility for a minimum of 90 days and the confinement begins after the contract issue date.**
Terminal Illness Rider: After the first contract year, a one-time free withdrawal of up to 100% of the contract value is allowed if the owner is diagnosed with a terminal illness and diagnosis occurs after the contract issue date.**


**Available to owners under age 75 at issue. Benefits and availability may vary by state. See brochure and disclosure for details. Not available in CA.
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. Rates are set at issue and subject to change. 
Annuity Contract and Riders issued under from series ICC17 BASE-IDX, ICC17 IDX-10-10, ICC18 E-MPTP-A (+Patent Pending), ICC20 E-PTP-PR, ICC18 R-WSC, ICC19 R-NCR, ICC19 R-TIR, ICC16 R-MVA, and state variations thereof. Availability may vary by state.
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.
The BofA Destinations Index™ (the “Index”) has been created and is owned by BofA Securities, Inc. and its Affiliates (collectively, “BofAS”); the Index has been licensed to American Equity Investment Life Insurance Company (“American Equity”).  Neither American Equity nor any fixed index annuity (the “Product”) is sponsored, operated, endorsed, sold or promoted by BofAS. BofAS has not passed on the legality or suitability or appropriateness of, or the accuracy or adequacy of descriptions and disclosures relating to, the Product, nor makes any representation or warranty, express or implied, to the owners of the Product or any member of the public regarding the Product or the advisability of purchasing the Product, particularly the ability of the Index to track performance of any market or strategy.  It is the recommendation of BofAS that individuals consult with a financial professional prior to taking an exposure to the Product and/or the Index.  BofAS’ only relationship to American Equity is the licensing of certain trademarks and trade names and the Index or components thereof.    
The Index has been designed, determined, composed, calculated, maintained and sponsored by BofAS without regard to the Licensee or the Product or its holders. BofAS has no obligation to take the needs of the Licensee or the holders of the Product into consideration in designing, determining, composing, calculating, maintaining or sponsoring the Index or any decision to cease doing so. 
BofAS is not responsible for and has not participated in the determination of the timing of, prices of, or quantities of the Product to be issued or in the determination or calculation of the equation by which the Product is to be priced, sold, purchased, or redeemed. BofAS has no obligation or liability in connection with the administration, marketing, or trading of the Product. Obligations to make payments under any Product are solely the obligation of American Equity pursuant to the terms of the contract between American Equity and the purchaser and are not the responsibility of BofAS. The selection of a BofAS index as a crediting option under the Product does not obligate American Equity or BofAS to invest annuity payments in the components of the Index or in other products linked to the Index.
BOFAS DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA INCLUDED THEREIN AND BOFAS SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, UNAVAILABILITY, OR INTERRUPTIONS THEREIN.  BOFAS MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, HOLDERS OF THE PRODUCT OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR ANY DATA INCLUDED THEREIN.  BOFAS MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, WITH RESPECT TO THE INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL BOFAS HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, INCIDENTAL, CONSEQUENTIAL DAMAGES, OR LOST PROFITS, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
“BofAS”, “BofA” and the “BofA Destinations Index” are trademarks of BofA Securities, Inc. or its Affiliates and have been licensed for use by American Equity.