Athene Aviator 10 Annuity Review
The Athene Aviator 10 is a fixed indexed annuity designed for long-term, protected accumulation. It offers fixed and index-linked interest-crediting strategies, one-, two-, and five-year crediting terms, a traditional S&P 500 option, several engineered indexes, automatic rebalancing, Daily Value tracking, Index Lock, and annual penalty-free withdrawals.
This is an accumulation annuity—not a guaranteed-lifetime-income annuity. Aviator 10 does not include a guaranteed lifetime withdrawal benefit, premium bonus, enhanced death-benefit rider, or return-of-premium feature.
The product is issued by Athene Annuity and Life Company and is intended for someone who wants principal protection from negative index performance while maintaining the opportunity to earn interest over a long holding period.
Our Professional Opinion on the Athene Aviator 10 Annuity
Our opinion of the Athene Aviator 10 is that it is a good but not great accumulation annuity. We recommend considering it when the current traditional S&P 500 terms are competitive, the buyer wants a strong insurance company, and the money can remain in the contract for the full surrender period.
We like that Athene offers a straightforward annual S&P 500 cap strategy in addition to its proprietary indexes. Based on the current rate sheet, the traditional S&P 500 cap is competitive enough to make Aviator 10 worth comparing with other accumulation-focused FIAs.
We also like that the product has no annual contract fee, no premium bonus that needs to vest, no optional income rider fee, and no strategy buy-up fee. The contract is cleaner than annuities that advertise a large bonus or enhanced participation rate and then charge multiple fees against the account value.
Our biggest concern is renewal-rate risk. Athene guarantees the applicable cap or participation rate only for the initial crediting term. At the end of that term, Athene can declare a different rate for the next term.
The annual S&P 500 cap can therefore change every year. The fixed-account rate can also change annually. Even the five-year strategies only lock the participation rate for that five-year crediting term—not for the entire 10-year surrender period.
That means a buyer can enter Aviator 10 when rates look attractive and later receive less upside while the money remains subject to surrender charges.
The Index Lock feature does not fix that problem. Index Lock locks the index value used to calculate interest during the current crediting term. It does not lock the cap rate, participation rate, fixed rate, or renewal terms for the remainder of the contract.
Index Lock can be useful when a strategy has performed well and the owner wants to protect that gain from a later decline before the crediting term ends. However, the owner must monitor the strategy and decide when to lock. Once the index value is locked, the strategy generally no longer benefits from additional index gains during the remainder of that term.
Do not confuse Index Lock with a cap lock. A true cap lock prevents the insurance company from reducing the cap during the applicable guarantee period. Aviator’s Index Lock merely freezes the index value inside the current strategy term.
For buyers who want predictable accumulation terms, we prefer annuities with a contractual cap lock or participation-rate guarantee on a transparent traditional index. Our comparison of annuities designed to reduce renewal-rate risk explains the difference.
The traditional S&P 500 choices are better than relying exclusively on engineered indexes. However, much of Aviator’s headline upside is concentrated in the BofA Multi-Asset FC 7 Index, Invesco QQQ FC 7 Index, and S&P 500 FC 7% Index.
Those are engineered, volatility-controlled, excess-return indexes. The Invesco QQQ FC 7 Index is not the traditional Nasdaq-100. The S&P 500 FC 7% Index is not the traditional S&P 500. Their index calculations include volatility controls, excess-return mechanics, embedded deductions, and transaction or replication costs that can reduce performance.
A large participation rate on one of those indexes cannot be compared directly with the same participation rate on the traditional S&P 500. Before choosing an engineered index, review its live date, actual live history, volatility target, internal deductions, and how much of the illustrated performance is hypothetical or backtested.
We are also cautious about the multi-year crediting terms. The two- and five-year options offer larger participation rates because Athene has more time and flexibility to price the strategy. The tradeoff is that the buyer may wait several years before receiving an interest credit.
We generally prefer one-year crediting periods unless the longer guarantee is compelling enough to justify the additional timing risk. A five-year strategy can perform well during the early years and still produce disappointing credited interest if the index gives back those gains before the term ends. Index Lock can help, but it places the timing decision on the owner.
The Diversified Blend Strategy and Strategy Preset features are useful for someone who wants automatic diversification, rebalancing, and crediting-term laddering. However, they are built around Athene’s three custom indexes rather than a diversified group of traditional indexes.
Automatic rebalancing does not guarantee a better return. It simply automates the allocation process. Buyers should not assume that a preset labeled Conservative, Balanced, or Growth works like a traditional investment portfolio with the same label.
One of the product’s best features is Daily Value. It tracks index performance during a crediting term and can recognize applicable uncredited gains for death, annuitization, terminal illness, or qualifying confinement. Free Withdrawal Gains can also credit a prorated portion of strategy performance when an eligible penalty-free withdrawal is taken.
Those features make multi-year strategies more usable than a contract that ignores all interim performance. They do not eliminate surrender charges, MVA risk, renewal-rate risk, or the possibility that a strategy earns no interest.
Aviator 10 provides strong first-year liquidity for a 10-year FIA. The owner can generally access a portion of the accumulated value without a surrender charge or MVA beginning in the first contract year. Qualifying terminal illness or care-facility confinement can provide access to the full Daily Value after the applicable waiting period.
The health waivers are useful, but they are not long-term care insurance. They provide access to the owner’s existing annuity value rather than creating a separate pool of money for home care, assisted living, or nursing-home expenses.
Our bottom line: Athene Aviator 10 is a good accumulation FIA when its current traditional S&P 500 terms are competitive. We like Athene’s financial strength, the no-fee design, traditional S&P 500 options, Daily Value, Free Withdrawal Gains, Index Lock, first-year liquidity, and hands-free allocation features. We do not like the renewal-rate risk, heavy engineered-index emphasis, long multi-year strategies, 10-year surrender commitment, MVA, or lack of a GLWB and return-of-premium feature.
Compare Aviator 10 With Today’s Best Fixed Indexed Annuities
The strongest accumulation FIA can change as insurers adjust caps, participation rates, fixed rates, liquidity provisions, and surrender terms.
What We Like
- Strong Insurance Company: Athene comfortably exceeds our A- minimum financial-strength standard.
- Competitive Traditional S&P 500 Option: The current annual cap is strong enough to make the product worth comparing for accumulation.
- Five-Year Traditional S&P 500 Strategy: The participation rate is guaranteed for the initial five-year term rather than changing annually during that term.
- No Annual Product Fee: The base contract does not charge an annual contract fee.
- No Premium Bonus: There is no bonus-vesting schedule or bonus recapture to track.
- No Strategy Buy-Up Fee: The current crediting strategies do not require a separate fee for enhanced caps or participation rates.
- Daily Value: The contract tracks applicable uncredited gains during a strategy term for qualifying events.
- Free Withdrawal Gains: Eligible partial withdrawals can receive prorated index performance from the beginning of the current term.
- Index Lock: The owner can lock an eligible index value once during the crediting term to protect gains from a later decline.
- Strategy Preset: Buyers who want a hands-free approach can use automatic rebalancing and crediting-term laddering.
- First-Year Penalty-Free Access: The contract provides annual liquidity beginning in the first contract year.
- Health-Related Waivers: Qualifying terminal illness or care-facility confinement can provide access without normal surrender charges or an MVA.
- Daily-Value Death Benefit: Beneficiaries can receive the greater applicable value, which may recognize uncredited strategy gains at death.
What We Don’t Like
- Rates Are Guaranteed Only for the Initial Term: Athene can declare different caps, participation rates, and fixed rates at renewal.
- Index Lock Is Not a Cap Lock: It locks an index value during a strategy term, not the rate used for future terms.
- Engineered Index Reliance: Much of the larger-looking upside is attached to volatility-controlled, excess-return indexes with embedded costs.
- QQQ FC 7 Is Not the Nasdaq-100: The name may sound familiar, but it is an engineered index with a different methodology.
- S&P 500 FC 7 Is Not the Traditional S&P 500: It includes volatility control, an excess-return calculation, and an index decrement.
- Long Crediting Terms: The two- and five-year strategies delay final interest crediting and create additional timing risk.
- Fixed Rate Resets Annually: The fixed account does not provide the multi-year certainty of a MYGA.
- No Guaranteed Lifetime Withdrawal Benefit: The product is not designed to provide flexible guaranteed lifetime income.
- No Return of Premium: The owner cannot assume the original premium will be available after an early surrender.
- No Bailout Provision: A future rate reduction does not automatically allow the owner to leave without surrender charges.
- Long Surrender Period: The 10-year contract requires a substantial commitment.
- Market Value Adjustment: Excess withdrawals or surrender during the charge period may be increased or reduced by the MVA.
- No Standard Systematic Withdrawals: The current product summary does not provide the same systematic-withdrawal functionality offered by some competing annuities.
Athene Aviator 10 Product Details
| Product Type | Single-Premium Deferred Fixed Indexed Annuity |
| Primary Purpose | Long-Term Protected Accumulation |
| Issuing Company | Athene Annuity and Life Company |
| Issue Ages | Generally ages 0 through 80, subject to state availability |
| Minimum Premium | $10,000 |
| Maximum Premium | $1,000,000 without company approval |
| Premium Type | Single premium |
| Surrender Period | 10 Years |
| Penalty-Free Withdrawals | Annual access to a portion of accumulated value beginning in the first contract year |
| Crediting Periods | One, two, and five years, depending on the selected strategy |
| Traditional Index | S&P 500 |
| Engineered Indexes | BofA Multi-Asset FC 7, Invesco QQQ FC 7, and S&P 500 FC 7% |
| Diversified Blend Strategy | Automatic allocation and rebalancing among Athene’s three custom indexes |
| Strategy Preset | Optional hands-free diversification and crediting-term laddering |
| Index Lock | Available once per eligible strategy term; not available on the annual S&P 500 cap strategy |
| Daily Value | Tracks applicable intra-term index performance for qualifying contract events |
| Market Value Adjustment | Yes |
| Bailout Provision | No |
| Return of Premium | No |
| Guaranteed Lifetime Withdrawal Benefit | Not Available |
| Death Benefit | Greater of Daily Value or Minimum Guaranteed Contract Value |
| Financial Strength | A+ from AM Best, Fitch, and Standard & Poor’s in the supplied product materials |
Athene is an excellent annuity company. Athene’s financial strength is not our concern with Aviator 10. The decision comes down to whether its current traditional-index rates are competitive and whether the buyer accepts the renewal-rate risk, engineered-index exposure, multi-year crediting terms, and long surrender commitment.
Product features, state availability, index options, caps, participation rates, and fixed rates can change. Review the current state-specific illustration, disclosure, and contract before purchasing.
How the Athene Aviator 10 Works
You fund Aviator 10 with a single premium and allocate the money among the available fixed and indexed strategies.
The money is not invested directly in the stock market or in any index. Athene uses changes in the selected index and the contract’s cap or participation rate to determine whether interest is credited.
If an indexed strategy has a negative result, the index credit is generally zero rather than negative. Previously credited interest is protected from future negative index performance.
The contract can still lose value because of withdrawals, surrender charges, an MVA, taxes, or other contract adjustments. Principal protection from index losses does not mean every early exit is guaranteed to return the full premium.
Traditional S&P 500 Strategies
Annual S&P 500 Cap Strategy
The annual S&P 500 point-to-point strategy is the simplest accumulation option in the contract. Athene compares the index value at the beginning and end of the one-year term and credits positive performance up to the applicable cap.
We like the transparency of this method. The buyer can follow the traditional S&P 500 rather than relying on a proprietary index methodology.
The disadvantage is that the cap is guaranteed for only the current one-year term. Athene can declare a different cap at the next renewal.
The annual S&P 500 cap strategy also does not offer Index Lock or Free Withdrawal Gains under the current product design.
Five-Year S&P 500 Participation Strategy
The five-year traditional S&P 500 strategy uses a participation rate rather than a cap. The participation rate is guaranteed for the initial five-year term.
That gives the buyer more rate certainty during the first half of the surrender period. However, the strategy does not guarantee a positive return, and Athene can establish a different participation rate for the next term.
A five-year point-to-point strategy also creates substantial timing risk. The index can rise during the early years and give back gains before the final measurement date. The Index Lock feature can help protect a favorable index value, but the owner must decide when to use it.
Engineered Index Strategies
Aviator 10 offers several custom strategies with higher headline participation rates:
- BofA Multi-Asset FC 7 Index
- Invesco QQQ FC 7 Index
- S&P 500 FC 7% Index
- Diversified Blend Strategy using all three custom indexes
These are excess-return indexes with volatility-control mechanisms and embedded costs. Volatility control can reduce large losses inside the index calculation, but it can also reduce participation in a rising market by moving exposure toward cash or lower-risk assets.
Excess-return calculations also subtract a reference rate or similar financing component before determining index performance. Embedded fees, transaction costs, and replication costs can further reduce the result.
Do not select one of these indexes merely because its participation rate is larger. The participation rate is only one part of the formula.
Diversified Blend Strategy and Strategy Preset
The Diversified Blend Strategy spreads the allocation among Athene’s three custom indexes and automatically rebalances the exposures over time.
Strategy Preset adds automatic transfers and crediting-term laddering. The buyer selects a Conservative, Balanced, or Growth path, and Athene manages the renewal allocations within that preset structure.
This can be useful for someone who does not want to manage several strategy maturities manually. It can also create the possibility that part of the contract completes a crediting term each year.
The downside is that the labels may create a false sense of familiarity. These are annuity allocation presets—not traditional managed portfolios. All of the Diversified Blend exposure is tied to Athene’s engineered indexes.
Index Lock Is Not a Rate Lock
Index Lock lets the owner freeze the current index value once during an eligible crediting term. Athene then uses that locked value when calculating the applicable Daily Value, Free Withdrawal Gains, and final interest credit.
The feature can protect a positive result from a future market decline. It can also prevent the strategy from benefiting from additional index growth after the lock.
Index Lock does not guarantee the current cap or participation rate at the next renewal. Buyers who want contractual protection from future rate reductions should compare true cap-lock and participation-rate guarantees.
Daily Value and Free Withdrawal Gains
The Accumulated Value generally reflects interest after it has been officially credited at the end of the applicable strategy term.
The Daily Value also reflects applicable index performance during an unfinished term. Athene can use the Daily Value for:
- The death benefit
- Qualifying terminal illness withdrawals
- Qualifying care-facility confinement withdrawals
- Annuitization
Free Withdrawal Gains can recognize a prorated portion of index performance when an eligible penalty-free withdrawal is taken before the end of a strategy term. The annual S&P 500 cap strategy is excluded from this feature.
Fixed-Interest Account
The fixed account guarantees its declared rate for one contract year. Athene can declare a new rate at the next anniversary, subject to the contractual minimum.
If the buyer expects to keep most of the money in the fixed account, compare current fixed annuity rates. A MYGA can guarantee the rate for the selected multi-year term rather than resetting it annually.
Liquidity and Penalty-Free Withdrawals
Aviator 10 allows annual penalty-free withdrawals beginning in the first contract year.
The free amount is generally based on the accumulated value under the contract provisions. Unused free withdrawals do not accumulate for future years.
RMDs from a qualified contract are treated as part of the annual free-withdrawal amount under the current product design.
Withdrawals above the free amount can trigger surrender charges and a Market Value Adjustment.
Buyers who expect to need substantial access should compare the best annuities for liquidity before entering a 10-year contract.
Terminal Illness and Confinement Waivers
After the applicable waiting period, Aviator 10 can waive normal surrender charges and the MVA when the annuitant qualifies for:
- A terminal illness expected to result in death within the contract’s stated period; or
- Confinement in a qualified care facility for the required number of consecutive days.
Eligibility, medical documentation, state availability, and timing requirements apply.
These waivers provide access to the owner’s Daily Value. They do not multiply the account, reimburse care costs, or create a separate long-term care benefit pool.
Death Benefit and Spousal Continuation
Before annuitization, beneficiaries generally receive the greater of the Daily Value or the Minimum Guaranteed Contract Value.
The Daily Value can make the death benefit more valuable than a contract that ignores uncredited index gains during a multi-year term.
A surviving spouse may be able to continue the contract through spousal continuation.
This is still a standard account-value death benefit rather than an enhanced legacy multiplier. Buyers focused primarily on inheritance should compare the best annuities for enhanced death benefits.
Does Athene Aviator 10 Provide Lifetime Income?
Aviator 10 does not include a guaranteed lifetime withdrawal benefit.
The contract can provide lifetime income through traditional annuitization. Annuitization generally converts the contract value into an irrevocable payment stream and ends normal access to the lump sum and other contract benefits.
Someone whose primary goal is guaranteed lifetime income should compare dedicated income annuities based on the actual guaranteed payout, joint-life provisions, increasing-income options, rider fees, and care benefits.
Retirement Accounts Accepted
Aviator 10 can generally accept nonqualified funds and eligible retirement-account transfers and rollovers, subject to the contract and state rules.
- Nonqualified funds
- Traditional IRA
- Roth IRA
- SEP IRA
- Eligible 403(b) and employer-plan rollovers
- Inherited IRA under the insurer’s ownership requirements
An IRA already provides tax deferral. The reason to use an annuity inside an IRA should be principal protection, insurance-company guarantees, liquidity features, or other contract benefits—not additional tax deferral.
Who Should Consider Athene Aviator 10?
- Someone Seeking Protected Accumulation: You want interest potential without direct stock-market losses.
- Someone Who Values a Strong Insurer: Athene’s financial strength is an important part of the decision.
- Someone Comfortable With a 10-Year Commitment: You can leave the money in place through the surrender period.
- Someone Who Wants a Traditional S&P 500 Option: You do not want to rely entirely on engineered indexes.
- Someone Who Values Interim Performance Visibility: Daily Value and Free Withdrawal Gains are useful to you.
- Someone Who Wants Hands-Free Allocation Management: Strategy Preset and automatic rebalancing fit your preferences.
- Someone With Adequate Liquidity Elsewhere: You do not expect to need more than the annual free-withdrawal amount.
Who Should Probably Buy Something Else?
- Someone Seeking Guaranteed Lifetime Income: Aviator 10 does not include a GLWB.
- Someone Who Wants a Full-Term Cap Lock: Current rates are guaranteed only for the applicable crediting term.
- Someone Who Dislikes Engineered Indexes: Much of the product’s headline upside is attached to custom volatility-controlled indexes.
- Someone Who Wants Annual Crediting Only: The product emphasizes two- and five-year strategies.
- Someone Who Needs a Guaranteed Fixed Rate: The fixed account resets annually.
- Someone Needing Strong Early Liquidity: Excess withdrawals can trigger surrender charges and an MVA.
- Someone Who Wants Return-of-Premium Protection: Aviator 10 does not include that feature.
- Someone Focused Primarily on Legacy: The product provides a standard account-value death benefit rather than an enhanced legacy multiplier.
Better Alternatives to Athene Aviator 10
A Cap-Lock Fixed Indexed Annuity
A cap-lock FIA can guarantee the cap or participation rate for the applicable contract period. This removes a major part of the renewal-rate risk that remains with Aviator 10.
A Multi-Year Guaranteed Annuity
A MYGA may be a better choice when the buyer wants a simple fixed return and does not want to rely on index performance, Index Lock decisions, or future cap renewals.
A Dedicated Lifetime-Income Annuity
A fixed indexed annuity with a contractual GLWB is a better fit when the primary goal is a retirement paycheck that continues for life without traditional annuitization.
What We Recommend
We recommend considering Athene Aviator 10 when protected accumulation is the goal and its current traditional S&P 500 terms compare favorably with the rest of the A- or better-rated market.
We would generally favor the annual traditional S&P 500 strategy over the engineered indexes unless the buyer understands the custom index methodology and has a specific reason to use it.
We would use the five-year S&P 500 strategy only when the guaranteed participation rate is compelling enough to justify a five-year crediting term and the buyer is comfortable monitoring Index Lock.
For someone who wants the insurance company’s rate locked for the full contract period, we would choose a true cap-lock product or MYGA instead.
Contact The Annuity Expert for free annuity quotes and a no-obligation comparison before purchasing Aviator 10.
Book A Free Consultation
Get help from a licensed financial professional. This service is free of charge.
Let Us Answer Your Questions
Not quite ready for a meeting, but you have a question that needs answering? We’re happy to help. Leave an inquiry below, and one of our staff will respond via email.