American Equity Annuity
American Equity Annuity provides various annuity plans, such as fixed indexed annuities and immediate annuities, both designed to provide lifetime income streams whereas the latter begins paying out within 12 months after contract issue.
American equity guarantees these annuities to grow at a set rate upon purchase and offers a free-look period.
Annuities are insurance products
American Equity Investment life Insurance Company provides annuities designed to guarantee retirement income with tax-deferred growth and an interest rate that cannot drop below zero – unlike mutual funds which may lose value during times of market turmoil, annuities guarantee an income stream in retirement.
An annuity from this provider also comes equipped with features to meet your individual retirement goals, such as single premium immediate annuities that begin making payments within 12 months and can continue making payments over your lifetime or a set period of time – and can even include death benefits for your heirs.
American Equity Annuities have earned high ratings from A-M Best and Fitch for reliability as an annuity provider, and are members of state guaranty associations that can provide extra financial protection in case they experience any financial difficulty. Furthermore, American Equity offers low fees including administrative marketing costs. Finally investment management fees must also be considered when comparing annuities.
They are not FDIC insured
An annuity differs from an IRA in that it is not covered by the FDIC; instead it relies on the strength of its issuing company’s finances as well as membership of state insurance guaranty associations which serve to protect annuity holders in case their issuer declares insolvency.
American Equity Investment Life Insurance Company provides three Guarantee Series annuities: Guarantee 5, Guarantee 6, and Guarantee 7. Each plan features its own set of benefits, such as the optional lifetime income benefit rider (LIBR). With LIBRs you can secure a lifetime income stream from either the income account value (IAV) or benefits account value (BAV) of your contract; payments will be distributed over time using different crediting strategies.
Index-based returns are calculated based on the performance of an Index as measured by an independent third party such as S&P or Societe Generale. None of the Index Parties involved in creating or calculating this Index bear any liability for its legality, suitability or accuracy in relation to any Product that uses or features this Index.
They have a free look period
An annuity offers a free look period, giving you time to review its contract before signing it. This typically lasts 10-30 days and allows you to ensure the annuity fits with your lifestyle; use it wisely! Carefully read over its contract as well as get an overview of fees and charges associated with it.
American Equity’s crediting rates may not compare favorably with its rivals; this can be detrimental for those seeking high index-based returns. American Equity provides both capped and uncapped crediting strategies on its index-based products.
American Equity Investment life Insurance Company offers the Retirement Gold annuity as a 10-year index-based rate guaranteed contract, featuring an initial annual variable annuity rate (IAV rate) of 6% that’s higher than its fixed account rate; however, early withdrawal may incur surrender charges; it is also wise to investigate its withdrawal schedule and market value adjustment (MVA) charge schedule before investing.
They have surrender charges
American Equity offers an assortment of fixed annuities that provide guaranteed principal protection and tax-deferred growth. Each product comes with free withdrawal options and minimum interest rates that vary based on plan. Furthermore, optional riders are available to protect, boost or extend income payments.
American Equity offers immediate annuities that start paying out after 12 months and provide lifetime income or a set period guarantee – some annuities may offer this guarantee while others last five to 25 years.
American Equity annuities are distributed nationwide and offer fixed predetermined growth, while mutual funds offer variable performance-based growth. Any withdrawal before age 59.5 triggers an income tax penalty.