Why it earned this rating
Our assessment
The large premium bonus provides an immediate contract value boost, but the CA-only availability, missing Enhanced Benefit Rider, and slow vesting schedule limit its appeal.
The short version
The 14% bonus is genuinely substantial — on a $100,000 premium, that is $14,000 added on day one. For buyers who will stay through the full 9-year period, the bonus gives a meaningful advantage over the no-bonus version even if the fixed rate is lower. For buyers who think they might need significant access to their funds before the surrender period ends, the bonus recapture provisions can erase that advantage quickly. Know your exit before you enter.
Key facts
The full review
Is American Equity AssetShield BONUS 9 a Good Annuity?
Yes, for the right buyer. If you are in accumulation mode for the next 9 years, can commit funds that you will not need beyond the free-withdrawal amount, and want a meaningful upfront boost to your starting value, this is a good choice. It is less appropriate for buyers who might need significant liquidity before year 9, who want income rider access, or who are over 80.
Why Someone Would Buy This Annuity
The primary driver is the 14% bonus. On a $100,000 premium, the account starts at $114,000 on day one. For a buyer who is confident in their ability to hold through the surrender period, that head start on accumulation is hard to replicate with a no-bonus product regardless of crediting rates. The secondary reason is the broad 38-strategy crediting menu, which gives flexibility to adjust allocations as market conditions change.
Who This Annuity Is Best For
I think AssetShield BONUS 9 is best for a buyer in their early-to-mid 50s who has a long enough horizon that 9 years is realistic, wants to maximize the starting account value, and is comfortable selecting among multiple crediting strategies. It is less appropriate for buyers close to 80 (the issue age cap), anyone who might need more than 10% of the account annually during the surrender period, or anyone whose primary goal is guaranteed income.
What You're Really Buying Here
A principal-protected FIA that starts 14% above your premium contribution, in exchange for a 9-year commitment and lower fixed-account and crediting rates than the no-bonus version. The bonus is not free — it is embedded in the product's rate structure. The question is whether you benefit more from a higher starting value with somewhat lower ongoing crediting rates, or from a lower starting value with higher ongoing rates. That calculation depends on how long you hold and how the index strategies perform. There is no single right answer; it depends on your specific situation.
How the Core Feature Works
The 14% bonus applies to all premiums received in the first contract year. It is immediately added to the account value and begins earning interest alongside the original premium. The bonus vests annually beginning in year two; the exact vesting percentage per year is not specified in consumer brochure materials but follows the pattern that full vesting occurs gradually over the surrender period. If you surrender above the free-withdrawal amount before the bonus is fully vested, the unvested portion is recaptured.
The same 38 indexed strategies from AssetShield 9 are available. However, the fixed account rate of 1.90% — versus 3.80% on the no-bonus AssetShield 9 — illustrates the rate structure offset built into the bonus product pricing. Buyers should compare both products with current crediting rates, not just the bonus percentage, before deciding.
Why the Secondary Feature Matters
The bonus becomes fully vested upon death, nursing home confinement, or terminal illness — so the health event waivers in the Enhanced Benefit Rider (included automatically for ages 75 and under) also serve as bonus acceleration provisions. For buyers who worry about needing the funds for a medical emergency, this is meaningful protection.
Liquidity and Surrender Schedule
Free withdrawals of up to 10% of contract value are available annually after year one. The surrender schedule is 7%, 8.35%, 7.35%, 6.25%, 5.10%, 3.95%, 2.70%, 1.35%, 0.70%, then 0%. Note the unusual structure: the first-year charge (7%) is lower than the second year (8.35%), which then declines. This is a design choice that may reflect the bonus dynamic. A market value adjustment applies during the surrender period. Early exits also trigger bonus recapture on amounts above the free-withdrawal provision.
Fees and Tradeoffs
No annual base-contract fee. Optional Performance Rate Rider at 1.50% per year for higher crediting rates. The primary cost is the rate structure offset that funds the bonus: the 1.90% fixed account rate is substantially below the no-bonus version. Buyers focused on fixed account yield rather than indexed crediting may find AssetShield 9 (no bonus) more attractive; buyers who prefer a higher starting value and are comfortable with indexed strategies should favor this version.
Product snapshot
| Feature | Details |
|---|---|
| Product type | Fixed index annuity |
| Issue ages | 18–80 |
| Minimum premium | $5,000 |
| Bonus | 14% of first-year premiums applied to account value |
| 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 | 7% / 8.35% / 7.35% / 6.25% / 5.10% / 3.95% / 2.70% / 1.35% / 0.70% / 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 significant fixed indexed annuity carrier that distributes primarily through independent advisors. Since 2023, American Equity operates within the Brookfield Reinsurance platform. Its financial strength ratings support long-term insurance commitments.
Final take
AssetShield BONUS 9 is a solid bonus accumulation FIA for buyers who are committed to a 9-year horizon and want a 14% head start on their account value. The broad strategy menu provides plenty of crediting flexibility. The real question any buyer should answer before purchasing is whether the combination of a higher starting value and the lower fixed rate and crediting structure of the bonus version outperforms the no-bonus AssetShield 9 over 9 years given their specific allocation preferences. That math should be run with current rates, not just the headline bonus number.