American Equity IncomeShield 9 review

Yes, for income-focused buyers who also want a meaningful upfront bonus within a 9-year commitment. It is not for buyers who want simplicity, buyers focused solely on accumulation, or buyers who need the money back within the first several years.

The primary reason is the combination of a 14% bonus with an income rider structure. Most income FIAs do not offer both in the same product at this duration. The secondary reason is the LIBR flexibility: four active rider options (two growth methods, each with or without Wellbeing Benefit) allow buyers to calibrate based on their income timeline and health protection needs. For a buyer who wants to maximize both immediate account value and future income potential, IncomeShield 9 is a well-rounded option.

I think IncomeShield 9 is best for a buyer in their mid-50s to mid-60s who wants a 9-year commitment that boosts the starting value with a bonus, uses an income rider to build guaranteed income over the deferral period, and either needs health event protection (Wellbeing Benefit) or does not. It is not appropriate for buyers over 80, anyone needing high liquidity in the early years, or buyers who want accumulation without income rider complexity.

A 9-year income FIA that starts 14% above the premium contribution and uses a lifetime income rider to build guaranteed income rights over time. The bonus applies to the account value (not just the income base), which is different from products like EstateShield where the bonus applies only to the benefit base. That distinction matters: a higher account value means the free-withdrawal provision is also higher, and the death benefit starts above premium, which is a real benefit.

The 14% bonus is applied to all first-year premiums and added to the account value immediately. The bonus vests annually beginning in year two. The LIBR (four active options available) uses an IAV that grows independently of the contract value:

**Lifetime Income Benefit Rider IX: Simple Interest** — IAV grows at a declared simple interest rate. Income available after year one.

**Lifetime Income Benefit Rider IX: Simple Interest with Wellbeing Benefit** — Same as above, with the Wellbeing Benefit added for qualifying health events (2-year wait; up to 5 years of enhanced income at 200% single / 150% joint).

**Lifetime Income Benefit Rider X: Compound Interest** — IAV grows at a declared compound interest rate. Higher long-term IAV growth than the simple interest version. Income available after year one.

**Lifetime Income Benefit Rider X: Compound Interest with Wellbeing Benefit** — Same as Rider X, with Wellbeing Benefit added.

Current IAV rates and rider fees should be confirmed with American Equity at time of purchase, as they are declared at issue and may vary from the rates in the brochure.

The crediting menu includes 10 indexed strategies — an expanded set compared to the 5-strategy IncomeShield 7 menu — covering S&P 500, BlackRock Adaptive U.S. Equity 5%, S&P 500 Dividend Aristocrats Daily Risk Control 5% ER Index, and others, with annual point-to-point and 2-year term options.

The Wellbeing Benefit versions of the LIBR add meaningful protection for buyers concerned about health events in retirement. It is not a confinement-based benefit — qualifying is based on ADL impairment (two of six activities of daily living), which is a broader eligibility standard than requiring nursing home confinement. A buyer who needs home care but is not in a facility can still potentially qualify. The 2-year waiting period applies, so buyers should plan accordingly.

The 9-year surrender schedule runs 7.35%, 7.35%, 7.25%, 6.20%, 5.10%, 3.95%, 2.75%, 1.55%, 0.80%, then 0%. This is a relatively favorable schedule compared to several 9-year peers — the charges decline steadily and the peak is not in the highest range. Free withdrawals of up to 10% of contract value are available annually after year one. A market value adjustment applies during the surrender period. The bonus recapture provisions apply to excess withdrawals during the vesting period.

The Enhanced Benefit Rider (included automatically for ages 75 and under) provides nursing care and terminal illness waivers.

The base contract has no annual fee. The LIBR is optional; if elected, the rider fee is calculated on the IAV at a rate declared at issue (confirm current fee with American Equity). The 2.00% fixed account rate is low. The 14% bonus is funded in part through the rate structure, which means buyers who compare this to the no-bonus IncomeShield 9 equivalent (if available) would see rate differences reflecting the bonus economics. The 9-year surrender commitment is the primary illiquidity tradeoff.

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. It is now part of the Brookfield Reinsurance platform since 2023. Financial strength ratings support long-term income commitments.