American Equity Choice Annuity is a fixed index annuity designed to help protect hard-earned dollars from index fluctuations while offering interest growth opportunities based on increases in an index.
Every retirement is different, each with its own financial goals and unique needs.
But, many of today’s retirement objectives are the same — asset protection, growth opportunities, and a reliable income source.
That is why many Americans are turning to fixed index annuities.
These products have helped millions of people reach their retirement goals with benefits like principal protection, tax-deferred growth, and guaranteed income that cannot be outlived.
About American Equity Annuities
American Equity Financial Strength
Understanding Fixed Index Annuities
What is a fixed index annuity?
A fixed index annuity is a contract backed by the financial strength and claims-paying ability of the issuing company. This guarantees contract owners a retirement vehicle designed to protect assets while allowing for growth opportunities.
It does this through a combination of powerful benefits:
- Principal Protection
- Guaranteed Income
- Tax-Deferred Growth
- Liquidity
- May Avoid Probate
How a fixed index annuity works
The long-term retirement product is purchased with an insurance provider that, in turn, guarantees principal protection, tax-deferred growth on assets, and a reliable income stream.
Throughout the course of the contract, the fixed index annuity can earn additional interest credits based, in part, on equity index increases. Research 8-year annuity rates.
As an insurance product, the fixed index annuity is not directly tied to any index.
So, there are none of the exposure risks associated with direct stock or share ownership.
The annuity cannot lose money due to volatility, and the interest credited will never be less than zero.
The Power of a Fixed Index Annuity
A fixed index annuity offers a powerful combination of benefits that help protect against many of today’s common retirement concerns.
- Principal Protection: Premium payments are secure, and each year any interest credited to the contract is locked in and cannot be lost due to index volatility.
- Guaranteed Income: Flexible payout options available, including lifelong paychecks.
- Tax-Deferred Growth: Earn interest on money without paying taxes on it until any distribution occurs. It enables faster growth by allowing credited interest to compound over time.
- Liquidity: Each contract defines various opportunities to withdraw funds, such as Penalty-Free Withdrawals, Partial Withdrawals, and lifetime income options. (Subject to applicable Surrender Charges.)
- May Avoid Probate: If applicable, beneficiaries receive any remaining value in the contract while avoiding the expense and time spent in probate.
Money Access Options and Features
With the American Equity Choice Annuity, there is always access to money in the annuity. American Equity provides withdrawal flexibility and a variety of liquidity options. Protection. Income. Guaranteed.
Penalty-Free Withdrawals
This is a once a year opportunity (after the first contract year) to take a Penalty-Free Withdrawal from the contract.
If the Market Value Adjustment (MVA) is elected at issue, a 5% Penalty-Free withdrawal from the Contract Value is available.
If the MVA is not elected at issue, the Penalty-Free withdrawal is 10% of the Contract Value.
Market Value Adjustment (MVA)
This product offers an optional Market Value Adjustment (MVA) Rider.
An MVA may increase or decrease the amount of a withdrawal in excess of the Penalty-Free withdrawal amount or the surrender value.
The MVA does not apply to Penalty-Free withdrawals, any death benefit, the MGSV, or any distributions occurring after the surrender charge period has ended.
In general, as the MVA Index increases, cash surrender values decrease.
As the MVA Index decreases, cash surrender values increase.
Interest Rates may be higher for contracts with an MVA Rider.
Waiver of Surrender Charge Riders
Nursing Care Rider
Included automatically for owners under age 75 at issue.
After the first contract year, a one-time withdrawal of up to 100% of the contract value is allowed if the owner is confined to a qualified nursing care facility for a minimum of 90 days.
Confinement must begin after the contract issue date, and written proof is required from both the qualified nursing care facility and the recommending physician.
Any payment made under this rider will not be subject to withdrawal charges, surrender charges, or MVAs.
Terminal Illness Rider
Included automatically for owners under age 75 at issue.
After the first contract year, a one-time withdrawal of up to 100% of the contract value is allowed if the owner is diagnosed with a terminal illness.
The diagnosis must occur after the contract issue date, and written proof with supporting documentation is required from a qualified physician.
Any payment made under this rider will not be subject to withdrawal charges, surrender charges, or MVAs.
Death Benefit
Death Benefit proceeds are paid to the named beneficiary(ies) with no Surrender Charges. Generally paid in a lump-sum, other income options are also available.
Life Insurance is also an inexpensive way to leave a death benefit for beneficiaries, tax-free.
