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About American Equity
American Equity Investment Life Insurance Company is one of the largest issuers of fixed indexed annuities in the United States. With over 25 years of experience, they specialize in providing retirement solutions that offer both growth potential and downside protection. Their IncomeShield product line is particularly popular among retirees seeking guaranteed lifetime income.
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How we scored them
Income Options92/100
Financial Strength86/100
Fees & Costs88/100
Flexibility85/100
Customer Service89/100
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The tradeoffs
What works
- Largest FIA issuer in the US by premium
- IncomeShield series offers competitive payouts
- Multiple index crediting strategies available
- Strong track record of rate competitiveness
- 10% annual free withdrawal provision
What to watch
- AM Best rating slightly lower than top competitors
- Limited MYGA product offerings
- Some products have complex fee structures
- Surrender periods up to 10 years
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What you could receive
Estimated guaranteed lifetime income based on a single premium payment. Actual rates may vary.
| Investment | Age | Monthly | Annual | Guarantee |
|---|---|---|---|---|
| $100,000 | 60 | $520 | $6,240 | Lifetime |
| $250,000 | 65 | $1,450 | $17,400 | Lifetime |
| $500,000 | 65 | $2,900 | $34,800 | Lifetime |
| $1,000,000 | 70 | $6,500 | $78,000 | Lifetime |
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Fee schedule
| Fee type | Amount | Description |
|---|---|---|
| Annual Contract Fee | $0 | No annual maintenance fee |
| Income Rider Fee | 0.95% | Annual fee for IncomeShield rider |
| Surrender Charge | Varies | Declining surrender charge schedule |
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Early withdrawal penalties
Charges apply to amounts above the annual free withdrawal (typically 10%).
| Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 |
|---|---|---|---|---|---|---|---|---|---|
| 9% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 0% |
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Best fit for these buyers
Investors seeking indexed annuity growth
Retirees wanting guaranteed lifetime income
Those comfortable with 10-year commitment
Ages 50-70 in accumulation or income phase
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Frequently asked questions
Is American Equity a good annuity company?
American Equity earns an average rating of 4.0/5 across the 14 products we've reviewed, with an AM Best rating of A and S&P rating of A-. Their financial strength is rated "Strong" with $70+ Billion in total assets. American Equity is particularly strong in income options.
How much income can I get from a American Equity annuity?
Income depends on your investment amount and age. For example, a $500,000 investment at age 65 could generate approximately $34,800 per year in guaranteed lifetime income. A $250,000 investment at the same age could generate about $17,400 per year.
What are the fees for American Equity annuities?
American Equity charges Annual Contract Fee: $0, Income Rider Fee: 0.95%, Surrender Charge: Varies. Notably, there is no annual contract fee on the base contract, which is a competitive advantage.
What is the surrender period for American Equity annuities?
American Equity annuities typically have a 10-year surrender period. Charges start at 9% in year one and decline to 0% in the final year. Most products allow 10% annual free withdrawals without penalty.