Why it earned this rating
Our assessment
The longest compounding window in the AssetShield line makes the optional Performance Rate Rider more impactful, but the high first-year surrender charge is among the steepest in the peer group.
The short version
This product is appropriate for buyers who are genuinely hands-off with a portion of their retirement savings for a decade, want to diversify across multiple crediting strategies, and either do not need income features or will fund income from other sources. For buyers who want a 10-year FIA but also want a premium boost to start, AssetShield BONUS 10 with its 14% bonus (or 21% with the enhanced rider) should be evaluated side by side with this product.
Key facts
The full review
Is American Equity AssetShield 10 a Good Annuity?
Yes, for a narrow buyer profile. This is a good 10-year accumulation FIA for someone who has a long horizon, wants access to a deep crediting menu, does not need income features, and will not need to access more than 10% annually during the term. It is not appropriate for someone who might need significant liquidity, anyone over 80, or buyers whose primary goal is generating lifetime income.
Why Someone Would Buy This Annuity
The main reason is a long accumulation runway with principal protection and no annual fee. A buyer who is 50-55 years old and does not plan to touch this money until retirement in their mid-sixties can use this product to grow a portion of savings with downside protection and without paying for income features they do not yet need. The 38-strategy menu is a differentiator for buyers who want to actively allocate across multiple crediting approaches.
Who This Annuity Is Best For
I think AssetShield 10 is best for buyers who are solidly in their 50s, have other liquid assets available for emergencies, want to let a portion of their retirement savings grow without market risk, and are not using this contract for income. Buyers closer to age 70 with a 10-year window (meaning they would be 80 when the surrender period ends) should think carefully about whether such a long commitment is appropriate for their situation.
What You're Really Buying Here
A 10-year principal-protected accumulation FIA with one of the widest crediting menus available from American Equity. This is not a growth stock substitute — it is an insurance contract. You are buying protection first and growth potential second, with the growth limited by caps and participation rates that may vary over time.
How the Core Feature Works
AssetShield 10 shares the 38-strategy menu with AssetShield 9, covering S&P 500 annual point-to-point cap and participation rate strategies, multiple volatility-controlled multi-asset indices, the BNP Paribas Patriot Technology Index, and others. The fixed account rate of 3.80% as of January 2026 is competitive. The Performance Rate Rider is available optionally at 1.50% per year for higher caps and participation rates.
The surrender schedule structure here is notably different from the rest of the AssetShield line: the first two years carry a 12% charge, which then steps down through 11%, 10%, 9%, 8%, 7%, 5%, 4%, 2%, and 0%. That 12% starting charge is among the highest in the non-bonus FIA market. Buyers should treat this contract as genuinely illiquid during the early years beyond the 10% free-withdrawal provision.
Why the Secondary Feature Matters
The Enhanced Benefit Rider is included automatically for buyers age 75 and under at no charge. Given the 10-year duration, these care and terminal illness waivers provide important protection against the scenario where a health event makes liquidity critical. A one-time withdrawal of up to 100% of account value is available without surrender charges upon meeting the qualifying conditions.
Liquidity and Surrender Schedule
The 10-year surrender schedule is 12%, 12%, 11%, 10%, 9%, 8%, 7%, 5%, 4%, 2%, then 0%. This is a high-commitment structure. Free withdrawals of up to 10% of contract value are available each year after year one. A market value adjustment applies to amounts above the free-withdrawal provision, which can further affect net amounts received on larger withdrawals. The nursing care and terminal illness waivers are the primary emergency access provisions.
Fees and Tradeoffs
No annual base-contract fee. The optional Performance Rate Rider adds 1.50% per year. The structural tradeoff is the 10-year lockup and the very high early surrender charges. Compared to AssetShield BONUS 10, which adds a 14% (or 21%) premium bonus but has a similar long commitment, this no-bonus version may be a weaker value proposition for most buyers since the bonus versions can provide a significant head start on accumulation.
Product snapshot
| Feature | Details |
|---|---|
| Product type | Fixed index annuity |
| Issue ages | 18–80 |
| Minimum premium | $5,000 |
| Additional premiums | Allowed ($1,000 minimum subsequent) |
| Account types | IRA, Roth IRA, SEP IRA, Inherited IRA, Non-Qualified |
| Free withdrawal | Up to 10% of contract value annually after year one |
| Surrender schedule | 12% / 12% / 11% / 10% / 9% / 8% / 7% / 5% / 4% / 2% / 0% |
| Market value adjustment | Yes, may apply during surrender period |
| Income rider | Not available |
| Bonus | None |
| Base contract fee | None |
| Performance Rate Rider | Optional; 1.50% annual fee |
| Death benefit | Greater of account value or MGSV |
| MGSV | 87.5% of premium less withdrawals, at minimum guaranteed rate |
| Enhanced Benefit Rider | Included automatically for ages 0–75 at no fee |
| Nursing care waiver | Up to 100% of account value after 90 days of qualifying confinement |
| Terminal illness waiver | Up to 100% of account value on diagnosis |
| Indexed strategies | 38 indexed options plus 1-year fixed account |
| Fixed account rate | 3.80% (January 2026) |
| State availability | Not available in New York; availability varies by state |
Carrier snapshot
American Equity Investment Life Insurance Company is an Iowa-based insurer founded in 1995, rated A by A.M. Best and A by Standard & Poor's. It is a leading fixed indexed annuity carrier distributing through independent advisors nationally. As of 2023, the company operates within the Brookfield Reinsurance platform, adding capital scale. Financial strength ratings are solid and appropriate for long-term insurance contracts.
Final take
AssetShield 10 is a capable long-duration accumulation FIA for buyers with a genuine 10-year horizon and no near-term income needs. The broad strategy menu, no annual fee, and automatic care rider are real strengths. The 12% early surrender charges and 10-year commitment are real constraints that should not be minimized.
I think most buyers who are considering AssetShield 10 should also look at AssetShield BONUS 10 — the 14% premium bonus on that product can meaningfully improve the long-term accumulation story if the buyer plans to hold through the full surrender period. The no-bonus version makes most sense for buyers who specifically do not want a bonus product due to the vesting restrictions.