Is American Equity Investment Life Insurance Company a Good Company to Buy From?
Short Answer: Yes—American Equity is financially strong and well-established in the fixed and indexed annuity market. However, strong ratings don’t automatically mean their products are the most competitive, so always compare contract terms and features before buying.
If you want to skip the corporate review and see their live yields, check out our dedicated table of American Equity annuity rates to compare their current payouts against the rest of the market.
About American Equity Investment Life Insurance Company
American Equity Investment Life Insurance Company is a prominent provider of fixed index annuities. Founded in 1995 and headquartered in West Des Moines, Iowa, American Equity manages over $56.42 billion in assets and has more than two million annuity contracts.
Financial Ratings & Company Strength
- Founded: 1995
Why Strong Ratings Don’t Automatically Mean Good Products
Even highly rated insurers can offer:
- Products with restrictive liquidity
- Renewal rates that decline after year one
- Riders with high fees
- Indexed annuities with limited upside
- Contract terms designed to benefit the insurer, not the customer
My Experience: I own an American Equity annuity. They have been consistent up until this year and have reduced my participation rates on my American Equity Choice Series 10 annuity, which is not good considering there are no bells and whistles on the contract. My upside potential with the S&P 500 was cut in half (originally 55% participation rate down to 23% participation rate. If you want growth, choose another annuity company. If you want guaranteed lifetime income, AE is a good company.
If you are in research mode of finding a new annuity contract, either check out today’s best annuity rates or use The Annuity Expert as your broker to do the research for you (it’s a free service).
This is why comparing product design is just as important as comparing company ratings.
Types of American Equity Annuities They Sell
Fixed Annuities
Fixed annuities offer a guaranteed rate of return on your investment. They provide a stable and predictable income stream, making them an excellent choice for conservative investors seeking safety and reliability.
Fixed-Indexed Annuities
Fixed-indexed annuities offer a return linked to the performance of a stock market index. This type of annuity combines the security of a fixed annuity with the potential for higher returns, offering a balanced approach to growth and safety.
Single-Premium Immediate Annuities
American Equity also offers single-premium immediate annuities, which provide immediate income payments after a lump-sum investment. This is ideal for those who need a guaranteed income stream right away.
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The Pros and Cons of American Equity Annuities
Pros
- Guaranteed Income for Life: Annuities provide a steady income stream throughout your retirement, ensuring financial security.
- Flexible Withdrawal Options: You can tailor withdrawals to fit your financial needs and goals.
- Potential for Higher Returns: Fixed-indexed annuities offer higher returns compared to traditional savings accounts.
- Consistent Renewal Rates: American Equity is known for its consistent renewals and reliable returns.
- Excellent Customer Service: The company has a strong reputation for customer support.
Cons
- High Fees: Some annuities come with higher fees, especially those offering greater upside potential.
- Low Fixed Annuity Rates: Fixed annuity rates have been low, limiting growth potential.
- Withdrawal Restrictions: There may be penalties for early withdrawals or exceeding annual limits.
American Equity Annuity Plans of Past and Present
- IncomeShield
- EstateShield
- GuaranteeShield
- Bonus Gold
- AssetShield
- Retirement Gold
- Choice Series (Past Product)
Why Comparing Annuities Is Critical—Even From Strong Companies
Just because a company is financially strong doesn’t mean it always offers the best deal. Before you buy an annuity, you need to compare:
- Interest Rates (for Fixed Annuities): Different insurers offer different guaranteed rates. A seemingly small difference in rates can translate into thousands of dollars more (or less) over the contract term.
- Index Crediting Strategies (for FIAs): Each company uses different cap rates, participation rates, spreads, and indexes. Choosing an annuity with a weak crediting formula or an underperforming index can greatly reduce your potential interest.
- Income Payouts: Some companies offer higher lifetime income from the same starting investment. If you’re comparing annuities with income riders, don’t just look at the benefit base growth—ask how much monthly income they actually guarantee at your planned income start date.
Choosing a reliable company is important—but optimizing your payout is essential. Comparing products from multiple companies is the only way to maximize your investment income. Compare American Equity income and rates to 50+ companies.
Tips for Choosing the Right American Equity Annuity
Understand the different types of annuities and their workings. Consider your specific financial goals and needs to determine if an annuity is right for you. Compare different annuities to find the best combination of features and benefits. If you own a discontinued American Equity annuity like the Benefit Gold or Guarantee Series, then let us compare it to newer products. We’ll help you determine if you could be earning more interest or receiving a higher income. It’s your money, so make sure it’s working as hard as it should.
American Equity Annuity Product Reviews
- Immediate Annuity
- EstateShield 10
- GuaranteeShield MYGA
- AssetShield Bonus 10 With EBLR
- AssetShield Bonus 10
Who Should Consider American Equity?
Ideal for:
- Retirees and near-retirees seeking principal protection and guaranteed lifetime income
- Conservative investors who want to avoid stock market losses
- Individuals rolling over retirement accounts and looking for stable, tax-deferred growth
- Buyers who prefer a company that focuses exclusively on annuities
Not Ideal for:
- Anyone who hasn’t compared income payout rates across other providers
- Younger investors looking for aggressive growth
- Individuals needing life insurance or long-term care protection in the same contract
- People who may need access to more than 10% of their money each year
Bottom Line
American Equity is a solid, reputable annuity provider with strong financial ratings and a singular focus on retirement income. But that doesn’t mean their products always pay the most or grow the fastest.
Before buying any annuity, compare interest rates, index crediting options, and income rider payouts across top-rated companies. You may find a similar product with a stronger long-term benefit elsewhere.
Get Help Now:
To find out if American Equity is right for your situation—or to compare income payouts and rates side-by-side with other top annuity providers—reach out to our brokers to help you compare American Equity annuities.
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