American Equity IncomeShield BONUS 10 review

Yes, for the right buyer. This is a strong option for income-focused buyers who want both an upfront premium bonus and an income rider on a 10-year platform, with meaningful health event protection built in. It is not appropriate for buyers who need significant liquidity before year 10, buyers over 80, or buyers focused on accumulation without income rider features.

The primary reason is the combination of a 14% bonus plus a 10% simple-interest or 6.5% compound-interest LIBR — both working together to maximize income potential. On a $100,000 premium, the account starts at $114,000 and the IAV (for Option 1) grows at 10% per year. By year 10, the IAV is $228,000 (14% bonus IAV base × 200% from 10-year simple interest growth). That is a meaningfully larger income base than a non-bonus product. The secondary reason is the Wellbeing Benefit included in both options — health event protection at no additional fee.

I think IncomeShield BONUS 10 is best for a buyer in their late 50s to early 60s who wants to maximize their income base through both a bonus head start and strong IAV growth, is committed to a 10-year holding period, and values the Wellbeing Benefit for health event protection. Option 1 is for buyers who want to start income after 10 years with the largest possible simple-interest IAV. Option 2 is for buyers who plan to defer income longer than 10 years and want compound interest to continue growing the IAV.

The combination of a bonus and an income rider on a 10-year platform. The bonus applies to the account value, giving a higher starting point for both accumulation and the income calculation base. The LIBR grows the IAV independently of index performance. The Wellbeing Benefit adds a safety net for health-related income needs. This product is designed to maximize the guaranteed income benefit — it is not primarily an accumulation vehicle.

The 14% bonus is applied to all first-year premiums on day one. It vests annually beginning in year two; excess withdrawals during the surrender period trigger partial recapture of the unvested portion. The bonus fully vests upon death, nursing care confinement, or terminal illness.

Two LIBR options are available, both carrying the Wellbeing Benefit at the same 1.20% annual fee:

**Option 1** mirrors IncomeShield 10: the IAV grows at 10% simple interest for up to 10 years. This is the highest near-term IAV growth rate available on the platform and is designed for buyers who plan to begin income within 10 years of purchase.

**Option 2** uses 6.5% compound interest for up to 20 years. Compound interest grows more slowly than 10% simple interest in the first 10 years but surpasses it in year 16 or so. Option 2 is designed for buyers who want to defer income for 15–20 years and benefit from the accelerating power of compound interest over a longer period.

The Wellbeing Benefit works identically in both options: after a 2-year wait and with income already in payment, if the owner or spouse cannot perform 2 of 6 ADLs, income can temporarily double (single) or increase by 50% (joint) for up to 5 years.

The crediting menu is the same 24-strategy menu as IncomeShield 10. The fixed account rate of 2.00% is lower than the non-bonus IncomeShield 10's 3.50%, reflecting the economic cost of the bonus in the product pricing.

The choice between LIBR Option 1 and Option 2 is the most important decision a buyer makes with this product. The math is:

- Option 1 (10% simple): After 10 years, IAV = 200% of starting value. After 15 years (only 5 years of simple interest remain after the declared period, so IAV growth stops at 10 years), IAV stays at 200%.

- Option 2 (6.5% compound): After 10 years, IAV ≈ 188% of starting value. After 15 years, IAV ≈ 257%. After 20 years, IAV ≈ 352%.

For buyers who plan to take income around year 10, Option 1 is likely superior. For buyers planning a 15-year or longer deferral, Option 2 may produce a larger IAV. Buyers should model both with current payout factors.

The 10-year surrender schedule runs 9.1%, 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. Excess withdrawals also trigger bonus recapture. Nursing home and terminal illness waivers provide emergency access without surrender charges; the bonus also fully vests upon these events.

The 1.20% rider fee is calculated on the IAV. As with IncomeShield 10, this fee grows in dollar terms as the IAV grows. The 2.00% fixed account rate is lower than the non-bonus IncomeShield 10 (3.50%), which reflects the bonus economics. The 10-year surrender commitment with early charges starting at 9.1% is a genuine illiquidity tradeoff. The bonus vesting provisions add a second layer of restriction on early withdrawals.

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. American Equity is a leading fixed indexed annuity carrier in the independent distribution market. The company became part of Brookfield Reinsurance's platform in 2023. IncomeShield BONUS 10 launched in September 2025 as one of the company's newest income products. Financial strength ratings support long-term income commitments.