American Equity Annuity
American Equity makes it possible to rest easy knowing your money is secure with its accumulation fixed index annuities that grow at a predetermined rate when purchased, unlike mutual funds that earn returns based on stock performance.
American Equity was founded by David Noble in 1995 and is headquartered in West Des Moines, Iowa. It’s publicly traded on the New York Stock Exchange under ticker symbol AEL.
What is an annuity?
An annuity provides you with a reliable income in retirement, unlike mutual funds which accrue interest at a set rate and rate upon purchase. At American Equity annuities we believe an annuity offers one of the safest investments on the market today and guarantee your income stream for life!
American Equity offers both fixed and index annuities that provide various methods of earning interest on your contract value. They specialize in creating annuities designed to protect principal while guarantee income.
The BofA Destinations Index (“Index”) is owned and copyrighted by BofA Securities, Inc. and its affiliates (“BofAS”). American Equity Investment life Insurance Company licenses the Index for use with certain Fixed Index Annuities; neither BofAS nor American Equity make any representation or warranty about whether buying, selling, holding, or trading an Index-linked Product would be in a buyer’s best interests.
American Equity annuities can only be purchased through an independent insurance agent or financial professional and any withdrawals prior to age 59 1/2 may incur a 10% tax penalty.
How does an annuity work?
American Equity offers various annuity products designed to help you reach your retirement goals, but it is essential that you thoroughly research each option available and consult a knowledgeable financial professional prior to making any decisions.
As with fixed annuities, index annuities offer peace of mind when selecting one to protect your principal while guaranteeing at least some minimum return regardless of market fluctuations and fees and expenses that could potentially reduce returns.
American Equity was established in 1995 and is based out of West Des Moines, Iowa. They sell annuities across all 50 states as well as Washington D.C. Their products are overseen by state insurance regulators. Furthermore, American Equity provides riders to enhance your annuity for added benefits.
What are the pros and cons of investing in an American Equity annuity?
American Equity offers both fixed and indexed annuities. Their indexed annuities feature returns linked to stock market index performance; however, fees could reduce your potential return.
American Equity’s annuities require extended surrender periods, unlike others which permit penalty-free withdrawals after one year.
American Equity’s low crediting rates may present problems if your chosen index experiences a sharp drop. Finally, customer satisfaction ratings at American Equity may not surpass that of competitors such as New York Life; however, AM Best gives the company an A rating, signalling its ability to meet payout obligations.
How can I get a quote for an American Equity annuity?
American Equity provides both fixed and index annuities; their fixed annuities guarantee a certain rate of return, while their index annuities track specific stock market indexes.
Customers looking for more information can connect with an independent insurance agent to gain further insight.
Customers have also shared positive reviews regarding the company’s customer service, with one writing that their experience included working with an “extremely knowledgeable sales person who provided excellent assistance when explaining different payout options and survivor benefits.”
Another customer lauded American Equity’s lifetime income rider, which offers an additional source of income for life. Available with AssetShield 7 fixed index annuity contracts, the rider allows one penalty-free withdrawal per contract year after its first contract year has concluded.