Our Ameritas Income 10 Index Annuity Review (Overall)
The Ameritas Income 10 is a fixed indexed annuity built for people who want to turn retirement savings into guaranteed lifetime income. Its two optional income riders take different approaches: one emphasizes a predictable income amount, while the other offers the potential for income to increase.
We like having a guaranteed income growth option, but that alone does not make Income 10 the best deal. The actual guaranteed income, rider cost, ten-year commitment, and care benefit restrictions matter more than a big number on an illustration. We would compare it with competing income annuities before buying.
- Product type: Flexible premium fixed indexed annuity
- Insurance company: Ameritas Life Insurance Corp.
- Surrender charge period: 10 years
- Income riders: Optional Income Protector or Income Builder, with an additional charge
- Health care feature: Optional plus versions can temporarily double qualifying income withdrawals
- Free withdrawals: Generally 10% of the beginning-of-year accumulation value each policy year after the first year, subject to contract rules
Ameritas Income 10 Index Annuity Alternatives
Not all annuities are created equal, and Ameritas Income 10 may not provide the best guaranteed income for your retirement plan. Compare it with the best annuities, fill out the form below, or call us at (770) 755-1565.
Our Professional Opinion on the Ameritas Income 10 Index Annuity
Income 10 has something we want to see in an annuity intended for future income: an Income Protector rider that offers a guaranteed way to build the value used to calculate future withdrawals. You do not have to cross your fingers and hope the index performs well just to establish your income plan.
The Income Builder rider is a different conversation. It offers a guaranteed component, but part of its potential income growth depends on interest credits. It also offers the possibility of increasing income after withdrawals begin. That can be attractive, but the illustrated increases are not guaranteed. Compare the guaranteed starting income and the actual income you could receive over time, not just the most attractive projection.
We do not know that Ameritas will pay you more than other strong insurance companies without running your numbers. If another contract offers higher guaranteed income for the same retirement date, we would usually prefer the stronger paycheck. The enhanced care benefit is worth comparing too, but it has a significant weakness: the doubled amount ends if the accumulation value is depleted.
Ameritas is a good annuity company with an A (Excellent) financial strength rating from AM Best. That meets our preference for a long-term income commitment, but a good insurer does not automatically mean the best payout.
What We Like
- A guaranteed income-growth option: Income Protector lets you plan future income without relying entirely on index performance.
- Lifetime income: An elected rider can keep eligible income payments coming even if the accumulation value reaches zero, as long as its conditions are met.
- Income choices: Compare a level approach with an option that can increase income when interest is credited.
- Optional care enhancement: The plus version can temporarily double the eligible withdrawal if you meet its care requirements.
- Flexible premium: You can add money, subject to contract rules.
- Health waivers: Qualifying confinement, home health care, or terminal illness may provide access without surrender charges.
What We Don’t Like
- Ten-year surrender commitment: That is a long time if your plans change or you need a large amount back.
- Income riders cost extra: Rider charges reduce the account value and can increase within the contract’s limits.
- Increasing income depends on interest: Do not build your essential-expense plan around projected income increases that may never arrive.
- The care boost can end: The enhanced amount stops when the accumulation value reaches zero. That is a big limitation.
- Renewal crediting terms can change: Future caps and participation rates can be less attractive, subject to contract guarantees.
- A roll-up is not cash interest: Growth in the value used for income calculations is not necessarily growth in money you can withdraw.
How the Income Riders Work
The optional guaranteed lifetime withdrawal benefit (GLWB) is the main reason to consider Income 10. You choose an available rider and pay an additional charge. Once you meet its rules and start lifetime withdrawals, the rider calculates how much you can receive each year. Eligible payments can continue for life even if your account value is exhausted.
The 10-year surrender period does not mean you must wait 10 years to start income. Eligible covered people can begin lifetime withdrawals earlier, subject to the rider’s age and timing requirements.
Income Protector uses a guaranteed roll-up to build the premium accumulation value during the initial period, subject to its terms. It focuses on predictable level income. Income Builder combines a guaranteed growth component with a component tied to interest credits, and it can increase income after withdrawals begin when qualifying interest is credited. Its projected increases are not guaranteed.
Both riders use contract values and payout factors to calculate income. A larger income value is not the amount you can withdraw in cash. Taking more than the permitted rider amount can reduce future benefits. Single-life and joint-spousal options should be compared using the same people and income start date.
Get a free income comparison based on your ages, state, deposit, and when you want income to begin. We can prepare a personalized income heat map so you can compare guaranteed dollars from Ameritas with other insurers, rather than choosing a contract because its roll-up looks impressive.
What Does the Income Rider Cost?
The income rider is optional and has an annual charge. The plus versions with the care feature cost more. Charges are taken from the annuity under the rider rules, reducing the accumulation value available for withdrawals and beneficiaries. The charge can change up to the contractual maximum, so check both the current rate and maximum in your illustration.
A rider fee is not automatically a bad deal if the income is competitive. The mistake is comparing fees alone without comparing the actual guaranteed payments, or ignoring the effect those fees can have on the money left in your account.
The Care Benefit: Helpful, but It Has a Catch
The optional plus version can double eligible lifetime withdrawals if the covered person cannot perform two of six activities of daily living and satisfies the rider requirements. Continued qualification is required. This can put more money in your hands while paying for care.
The extra income does not last after the accumulation value reaches zero. The regular guaranteed lifetime amount can continue under the rider terms, but the doubled amount stops. We prefer care enhancements that can continue for a defined period after the account is depleted when they are available and competitive.
This rider is not long-term care insurance. If paying for care is a major concern, compare actual coverage as well as annuity riders before deciding which protection you need.
How Interest Is Credited
You can allocate money among available index options or a fixed account. Index interest depends on the selected strategy and can be limited by caps or participation rates. Negative index performance does not directly produce a negative index credit, although rider charges, withdrawals, surrender charges, and an MVA can reduce your value.
Ameritas can change future crediting terms within contract guarantees. That matters especially for the Income Builder rider because its additional growth depends in part on actual interest credited. For pure accumulation, we would compare dedicated products with competitive multi-year cap locks, including Oceanview CapLock and Sagicor Sage Accumulator.
Withdrawals, Surrender Charges, and Market Value Adjustment
After the first policy year, you can generally withdraw up to 10% of the beginning-of-year accumulation value annually without a surrender charge, subject to the contract’s rules. Your income rider has its own withdrawal limits. A withdrawal can be free of a surrender charge and still reduce your future guaranteed income. Check both limits before taking money out.
Taking more than the free amount during the ten-year surrender period can trigger a surrender charge and a market value adjustment (MVA), where applicable. An MVA can increase or decrease the amount paid. Do not put your emergency fund or money you expect to need soon into this annuity.
Qualifying nursing home confinement, home health care, or terminal illness may allow access under the contract’s health waivers. Eligibility requirements, timing, and state rules apply. Review these crisis waivers before you need them.
What Happens When You Die?
Before income begins, the death benefit generally includes the accumulation value and the balance of eligible income rider charges paid, subject to the contract terms. Once income has started, the amount available to beneficiaries depends on the remaining account value, rider election, and contract provisions. A joint-spousal income election is different from spousal continuation; ask how each option applies before making your election.
Pros and Cons Compared With Other Annuities
- Compared with a MYGA: A fixed-rate annuity makes interest easier to predict and may be simpler for savings. Income 10 can provide lifetime withdrawals through an optional rider, but its indexed interest is not a fixed multi-year return and the rider costs extra.
- Compared with other fixed indexed annuities: Income 10 offers two distinct income approaches and a care option. Competing contracts may offer higher guaranteed income, better care terms, or stronger accumulation features. Compare actual contract illustrations.
- Compared with a RILA: A registered index-linked annuity may offer more upside potential, but can expose you to market losses. We generally prefer the index-loss protection of a fixed indexed annuity when protecting retirement savings is the priority.
- Compared with a variable annuity: A variable annuity offers investment choices and greater market exposure, but the account can lose value and fees can be substantial. Income 10 gives up direct market participation in exchange for protection from negative index credits.
Who Should Consider Ameritas Income 10?
- You want guaranteed retirement income and are willing to compare the actual payout with other A− or better insurers.
- You value the choice between a predictable income approach and potential increases, and understand that increases are not guaranteed.
- You can leave the money in place through a ten-year surrender period and are comfortable paying for the rider.
Who Should Look Elsewhere?
- You need substantial access to your money during the next ten years.
- You mainly want fixed interest or maximum accumulation instead of a lifetime income rider.
- Your highest priority is a care benefit that can continue after your annuity account value is depleted.
- Another strong insurer offers a higher guaranteed payment for the same income start date and features you need.
What We Recommend
Start with Income Protector if you want to know what your future income plan is built on. Compare Income Builder if you can accept uncertainty in exchange for the possibility of rising income. Then compare both with the highest guaranteed payments from other financially strong insurers. We would not choose Income 10 simply because its income base or care multiplier looks impressive.
Contact The Annuity Expert for a free, no-obligation comparison. We will compare guaranteed income, rider costs, access to your money, and care features so you can decide whether Ameritas Income 10 deserves a place in your retirement plan.
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