BalanceShield 10
The American Equity Investment Life Insurance Company, founded in 1995, has been a leader in the annuity and retirement market for nearly three decades now. With a focus on empowering its clients to fulfill their retirement needs, the company is known to offer high-quality fixed indexed annuities, which balance protection and growth while guaranteeing a regular income stream. American Equity holds trustworthiness in high regard, striving to supply financial solutions well suited to their customers’ unique circumstances. Serving the domestic US market, their product distribution goes through independent advisors, banks, and broker-dealers.
BalanceShield 10
Ratings:
- A.M. Best A-
- Fitch A-
- S&P A
- Comdex 58
About Product
Balanced Interest Strategy
This annuity contract provides an interest crediting strategy linked to the performance of the index selected. The contract value can be allocated to one or more of the available Balanced Interest Strategies, each comprised of an Index and either a one or two year term. Each Balanced Interest Strategy provides the opportunity to receive mid-term interest credits if a partial withdrawal or surrender or if death benefit are paid before the end of the term.
Index Lock
Ability to lock the index price prior to the end of a term. Thereafter, the locked index price is used to calculate any Gains-to-Date Credits during the strategy term and any interest credits at the end of the strategy term.
Interest Boost
A percentage by which we increase the Index Return, after application of any Participation Rate and Spread, in order to calculate the Strategy Gain Percentage.
Gains-to-Date
Interest credits on amounts withdrawn from a Balanced Interest Strategy prior to the end of the strategy term, using either the preferred or non-preferred crediting rate
Preferred Crediting Rate
- Uses the full Strategy Gain Percentage at the time of the withdrawal
- Used to calculate Gains-to-Date Credits for withdrawals of up to 10% of the Contract Value each year, beginning in year 2
- Uses a prorated Strategy Gain Percentage based on the amount of time that has elapsed in the strategy term
- Used to calculate Gains-to-Date Credits for first year withdrawals and withdrawals in excess of 10% of the Contract Value in a year
Allocation Accounts
| Name | Type | Rates |
|---|---|---|
| 1-Year S&P 500 Balanced Interest Participation Rate with Spread with 1% Floor and 10% Boost |
Balanced Interest
Annual
|
45%
Participation
1%
Spread
|
| 2-Year S&P 500 Balanced Interest Participation Rate with Spread with 1% Floor and 50% Boost |
Balanced Interest
Biennial
|
45%
Participation
1%
Spread
|
| 1-Year S&P 500 Dividend Aristocrats DRC 5% ER Balanced Interest Participation Rate with Spread with 1% Floor and 85% Boost |
Balanced Interest
Annual
|
100%
Participation
1%
Spread
|
| 2-Year S&P 500 Dividend Aristocrats DRC 5% ER Balanced Interest Participation Rate with Spread with 1% Floor and 170% Boost |
Balanced Interest
Biennial
|
100%
Participation
1%
Spread
|
| 1-Year BlackRock Adaptive US Equity 5% Balanced Interest Participation Rate with Spread with 1% Floor and 95% Boost |
Balanced Interest
Annual
|
100%
Participation
1%
Spread
|
| 2-Year BlackRock Adaptive US Equity 5% Balanced Interest Participation Rate with Spread with 1% Floor and 200% Boost |
Balanced Interest
Biennial
|
100%
Participation
1%
Spread
|
| 1-Year Fixed Account |
Fixed
|
4.05%
Fixed
|
Surrender schedule
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Penalty | 9% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% |
Riders
No Riders for BalanceShield 10 annuity.
Waivers
Enhanced Benefit
This no-fee rider is automatically included for owners age 75 and under and includes both a Qualified Nursing Care and Terminal Illness Benefit. Qualified Nursing Care Benefit – After the first contract year, one additional free withdrawal of up to 100% of the adjusted daily contract value is allowed if the owner is confined in a qualified 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 care facility and recommending physician. Terminal Illness Benefit – After the first contract year, one additional free withdrawal of up to 100% of the contract performance value is allowed if the owner is diagnosed with a terminal illness. Diagnosis must occur after the contract is issued and written proof with supporting documentation is required from a qualified physician.
Premium Notes
- $10,000 Qualified and Non-qualified
- Single premium deferred annuity
Maximum Premium
- Ages 18-69: $1,500,000
- Ages 70-74: $1,000,000
- Ages 75-80: $750,000
Withdrawal Provisions
Beginning in the second contract year, you can withdraw up to 10% of the Contract Value each year without any withdrawal charge or market value adjustment.
Required Minimum Distributions (RMDs)
RMDs are available beginning the calendar year following contract start date. Withdrawals of the RMD amount, as calculated by us, will reduce the Free Withdrawal amount available for the current contract year. We consider any withdrawals to first be in satisfaction of the RMD for that calendar year.
Market Value Adjustment (MVA)
An increase or decrease in the amount of a partial withdrawal or Surrender Value in excess of the Free Withdrawal amount. The MVA does not apply to Free Withdrawals, the Death Benefit or any amounts withdrawn after the end of the Withdrawal Charge period.
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