Why it earned this rating
Our assessment
The standard 14% bonus is solid, but the optional Enhanced Bonus & Liquidity Rider (21% bonus, improved free withdrawals) is what elevates this product above shorter-duration siblings.
The short version
A 14% or 21% bonus on day one is a compelling headline. For buyers who will stay through the 10-year surrender period, it can meaningfully improve the long-term accumulation story. The tradeoffs are the 10-year lockup, a fixed account rate of only 1.90%, high early surrender charges, and the bonus vesting restrictions that can erase the bonus advantage on early exits. Buyers considering this product should get a full illustration comparing it to the no-bonus AssetShield 10 with current crediting rates before deciding.
Key facts
The full review
Is American Equity AssetShield BONUS 10 a Good Annuity?
Yes, for a buyer who genuinely has a 10-year accumulation horizon, wants a large upfront boost to their starting account value, and is committed to staying through the surrender period. It is not for buyers who might need significant liquidity before year 10, buyers over 80, or buyers focused on lifetime income.
Why Someone Would Buy This Annuity
The primary driver is the bonus. On a $200,000 premium, the 14% bonus adds $28,000 to the account on day one. The 21% Enhanced Bonus & Liquidity Rider version would add $42,000. That is a significant head start on accumulation that no crediting strategy alone can replicate immediately. The secondary reason is the broad 38-strategy menu, which allows buyers to actively manage how interest is credited across multiple market indices and crediting methods.
Who This Annuity Is Best For
I think AssetShield BONUS 10 is best for a buyer in their early-to-mid 50s who has a genuine 10-year accumulation goal, wants the highest possible starting account value, and will use indexed strategies rather than relying primarily on the fixed account. It is not a good fit for anyone who might need the money before the 10-year window closes, anyone near the 80-year age cap, or anyone whose primary goal is income.
What You're Really Buying Here
A 10-year principal-protected FIA that starts substantially above your premium contribution. The bonus is real, but it is not free — the 1.90% fixed account rate (compared to 3.80% on the no-bonus AssetShield 10) reflects the economic cost embedded in the product structure. For buyers who will rely primarily on indexed crediting strategies rather than the fixed account, this cost differential matters less. For buyers who prefer the certainty of the fixed account, the no-bonus version's higher rate may outperform over time.
How the Core Feature Works
At purchase, the buyer may elect the standard 14% bonus (applied to first-year premiums) or add the Enhanced Bonus & Liquidity Rider for a 21% bonus. The rider adds both a higher bonus and enhanced liquidity provisions. In either case, the bonus is added to the account value immediately on day one.
Bonus vesting runs annually beginning in year two, with the unvested portion recaptured on excess withdrawals during the surrender period. The bonus is fully vested upon death, nursing home confinement, or terminal illness.
The 38-strategy crediting menu operates identically to AssetShield 9 and the no-bonus AssetShield 10. The fixed account rate of 1.90% is the key structural tradeoff versus the no-bonus version.
Why the Secondary Feature Matters
The Enhanced Bonus & Liquidity Rider (EBLR) is a meaningful optional add-on that does two things: it raises the bonus from 14% to 21%, and it improves the liquidity provisions of the contract. Buyers who are most concerned about the combination of a high upfront boost and better access to funds if needed should evaluate the EBLR carefully. The rider carries its own cost embedded in the product pricing; current terms should be confirmed with American Equity at time of purchase.
The Enhanced Benefit Rider (included automatically for ages 75 and under) provides nursing care and terminal illness waivers as in the rest of the AssetShield line.
Liquidity and Surrender Schedule
Free withdrawals of up to 10% of contract value are available annually after year one. The 10-year surrender schedule runs 9.1%, 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%, then 0%. A market value adjustment applies on withdrawals above the free amount during the surrender period. Bonus recapture applies to excess withdrawals.
Note that the EBLR version of this product may offer enhanced liquidity provisions above the standard 10% free-withdrawal amount — buyers should review the specific rider terms.
Fees and Tradeoffs
No annual base-contract fee. The optional Performance Rate Rider adds 1.50% per year for higher crediting rates. The EBLR is an optional add-on with its own pricing. The primary embedded cost is the significantly reduced fixed account rate (1.90% vs. 3.80%), which reflects the cost of the bonus subsidy in the product pricing. The 10-year surrender commitment with early charges starting at 9.1% is a material restriction.
Product snapshot
| Feature | Details |
|---|---|
| Product type | Fixed index annuity |
| Issue ages | 18–80 |
| Minimum premium | $5,000 |
| Standard bonus | 14% of first-year premiums applied to account value |
| Enhanced Bonus & Liquidity Rider bonus | 21% of first-year premiums (optional rider required) |
| Bonus vesting | Annually beginning year two; fully vested on death, nursing care, or terminal illness |
| 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 | 9.1% / 9% / 8% / 7% / 6% / 5% / 4% / 3% / 2% / 1% / 0% |
| Market value adjustment | Yes, may apply during surrender period |
| Income rider | Not available |
| 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; fully vests bonus |
| Terminal illness waiver | Up to 100% of account value; fully vests bonus |
| Indexed strategies | 38 indexed options plus 1-year fixed account |
| Fixed account rate | 1.90% (January 2026) |
| State availability | California product; state availability varies |
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. The company is a major player in the fixed indexed annuity market, distributing through independent advisors nationally. Since 2023, the company operates within the Brookfield Reinsurance platform. Its financial strength ratings support long-term insurance commitments.
Final take
AssetShield BONUS 10 is a strong bonus accumulation FIA for buyers who are committed to a 10-year holding period and want the highest possible starting account value. The 14% base bonus or 21% with the EBLR are among the most competitive in the 10-year bonus FIA market. The tradeoffs — a 1.90% fixed account rate, 10-year surrender period, and bonus vesting restrictions — are real and should be fully understood before purchasing.
I think the buyer who is best served here is one who plans to use the indexed strategies rather than the fixed account, genuinely will not need more than the free-withdrawal amount for a decade, and wants the psychological and mathematical benefit of starting with a larger account. If you are drawn more to the fixed account certainty, the no-bonus AssetShield 10 is the better design.