American Equity IncomeShield 10 review

Yes, for income-focused buyers committed to a 10-year deferral window. The 10% simple-interest IAV growth is among the more competitive rates available for a 10-year income FIA, and the Wellbeing Benefit provides meaningful health event protection. The 1.20% rider fee is on the higher end and should be modeled carefully. This is not for accumulation-only buyers, anyone who might need income before year one, or anyone who cannot commit funds for 10 years.

The primary reason is the 10% IAV growth rate. For a buyer who defers 10 years, the income base doubles before the payout factor is applied. That is a strong foundation for lifetime income. The secondary reason is the simplicity of the single rider option — buyers who found the IncomeShield 7's five options difficult to navigate will appreciate having one clear choice here. The Wellbeing Benefit is included automatically, not a separate election.

I think IncomeShield 10 is best for a buyer in their early 60s who is targeting income in their early-to-mid 70s, wants to maximize the IAV growth during the deferral period, and values the Wellbeing Benefit as built-in health event protection. A 63-year-old with a $200,000 premium who defers income for 10 years would have an IAV of approximately $400,000 (before any payout factor is applied) — a meaningful income base. For buyers in this profile, the math is compelling.

An income FIA with a straightforward design: one rider, one IAV growth mechanism, one Wellbeing Benefit structure. The product commits the buyer to a 10-year horizon in exchange for a high IAV growth rate and the security of lifetime income with health event protection. The 10% simple interest rate is the headline — the 1.20% fee is the key tradeoff to understand, because it grows in dollar terms as the IAV grows.

The LIBR on IncomeShield 10 works as follows: from day one (or the first anniversary as the income start eligibility date), the IAV grows at 10% simple interest per year for up to 10 years. This means the IAV grows by 10% of the original IAV basis each year. By year 10, the IAV is 200% of the starting value.

The IAV growth is guaranteed regardless of index performance — even in flat or negative years, the IAV grows at the declared rate. This is the income rider's core guarantee.

Lifetime income payout factors increase each year that income is deferred. A 60-year-old who defers 5 years might receive a 7.20% payout factor (per the brochure example); the same buyer who defers 10 years might receive a 7.90% factor. Longer deferrals produce higher payout factors and a larger IAV — both working in the same direction for maximum income.

The Wellbeing Benefit can be activated after 2 years of contract ownership and once income has started, if the owner or spouse cannot perform 2 of 6 ADLs. Enhanced income (200% single / 150% joint) is available for up to 5 years.

The 24-strategy crediting menu is broader than the 7 or 9-year IncomeShield products, and the fixed account rate of 3.50% is notably higher than the IncomeShield 7 (1.70%) or IncomeShield 9 (2.00%), reflecting the newer product launch date and rate environment.

The Wellbeing Benefit is included in the single rider option — it is not a separate election. Doubling income for up to 5 years during a qualifying health event can provide meaningful support in scenarios where care needs are elevated. Unlike some LTC-style riders, this is not confinement-dependent: it requires ADL impairment, which is a broader standard. The 2-year waiting period from issue means buyers should not count on this benefit being available immediately.

The 10-year surrender schedule runs 9.2%, 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%, then 0%. Free withdrawals of up to 10% of contract value are available annually after year one. A market value adjustment applies during the surrender period. Nursing home and terminal illness waivers are available and provide emergency liquidity access without surrender charges.

The 1.20% annual rider fee is calculated on the IAV. Because the IAV grows at 10% simple interest per year, the fee dollar amount grows significantly over time. In year one, on a $100,000 IAV, the fee is $1,200. By year 10 (IAV of $200,000), the fee is $2,400 per year — deducted from the contract value. Buyers should model this fee over their expected deferral period using current rates.

The base contract has no product fee beyond the rider charge. The 3.50% fixed account rate is competitive for an income FIA at this duration.

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 leading fixed indexed annuity carrier distributing through independent advisors nationally. Since 2023, American Equity operates within the Brookfield Reinsurance platform. Its financial strength ratings support long-term income planning commitments.