American Equity EstateShield 9 review

Yes, for a buyer in the 40–75 age range who wants a combination of lifetime income and enhanced death benefits built into one contract, without paying a separate rider fee that erodes the account value each year. It is not appropriate for buyers over 75, buyers who need income before year 10, buyers focused purely on accumulation, or buyers who need high liquidity.

The primary reason is the built-in income rider with no separate fee. On a product where the income account value starts 35% above the actual premium (due to the BAV bonus), that is a meaningful combination. The secondary reason is the enhanced death benefit structure: beneficiaries can choose to receive 75% of the BAV in a lump sum (which includes the 35% bonus and accumulated multiplier credits), or 100% of the BAV paid over 5 years. For buyers who want both lifetime income and a legacy plan for heirs built into a single contract, EstateShield 9 is a compelling design.

I think EstateShield 9 is best for a buyer in their early 60s who wants to set aside a portion of savings for guaranteed lifetime income starting in their mid-to-late 70s, and who also wants beneficiaries to receive enhanced benefits. The product is designed for patients — the income cannot begin until year 10, which means a 65-year-old would start income at 75 earliest. For buyers who want income sooner, this is not the right structure.

This is primarily a deferred lifetime income vehicle with a legacy enhancement. The 35% BAV bonus means the income calculation base starts higher than the account value, which in turn produces higher income payments when they begin. But the BAV and the account value (used for surrender and liquidity purposes) are different things — the bonus does not apply to what you would receive if you surrendered the contract early. Understanding that distinction is essential before purchasing.

On day one, all premiums paid in the first year are credited to the Benefits Account Value with a 35% bonus. After that, any interest credited to the contract value is also credited to the BAV through a BAV Multiplier — this mechanism allows the income base to continue growing alongside the contract value.

Lifetime income can begin on the day after the 10th contract anniversary. The income payment is calculated by multiplying the BAV at the time income begins by an age-based payout factor:

- Ages 50–59: 4.50% single / 4.00% joint

- Ages 60–69: 5.00% single / 4.50% joint

- Ages 70–79: 5.50% single / 5.00% joint

- Ages 80+: 6.00% single / 5.50% joint

Once income begins, there is potential for income payment increases if the BAV Multiplier continues to grow the BAV — creating the possibility of rising income in retirement rather than a flat payment.

The crediting menu is relatively focused compared to the AssetShield line: 7 indexed strategies including BlackRock Adaptive U.S. Equity 5% Index, S&P 500, S&P 500 Dividend Aristocrats Daily Risk Control 5% ER Index, monthly point-to-point, and annual and 2-year point-to-point options. The fixed account rate is 2.00%.

The Enhanced Death Benefit Rider is automatically included with the LIBR. Beneficiaries have the option to receive:

- 75% of the BAV paid as a lump sum, or

- 100% of the BAV paid in equal installments over 5 years

Both of these are likely to exceed the base contract death benefit (which is the greater of account value or MGSV), since the BAV starts 35% above premiums and can grow with the BAV Multiplier. For buyers who are simultaneously concerned about retirement income and leaving something meaningful for heirs, the dual benefit design is genuinely differentiated.

The 9-year surrender schedule runs 8%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%, then 0%. Free withdrawals of up to 10% of total premiums paid are available annually after year one. Note that the free-withdrawal base is premiums paid rather than account value — a modest distinction, but it means the free amount stays relatively consistent rather than growing with the account. A market value adjustment applies during the surrender period.

Surrender charge waivers: the base product for EstateShield 9 does not list nursing home or terminal illness waivers among its standard features in the product profile — buyers should confirm waiver availability for their specific state and contract version.

The LIBR is built in at no separate annual fee — this is a significant advantage over products that charge 0.75%–1.00% per year for a comparable rider. The BAV bonus of 35% does not improve the surrender value or account value available for liquidity; it only enhances the income calculation base and the death benefit. The restricted crediting menu (7 strategies vs. 38 in the AssetShield products) limits accumulation flexibility. The 40–75 issue age restriction is meaningful.

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 FIA specialist that distributes through independent advisors. American Equity became part of Brookfield Reinsurance's platform in 2023. Its financial strength ratings are solid and appropriate for long-term income and legacy planning contracts.