American Equity Choice 6 is one of the best fixed indexed annuities for asset protection and growth in the market. This annuity is quite flexible but is a great for if you have money you might not need in the short-term. This page highlights some more features of the Choice6 from American Equity.
Penalty-free withdrawals
After the 1st contract year, you may withdrawal a certain portion of your contract penalty-free. If the MVA (Market Value Adjustment) was chosen at issue, then your applicable penalty free withdrawal rate is 5%. However, if the MVA was not set at issue, you can withdraw up to 10% of your Contract Value.
Market Value Adjustment (MVA)
American Equity Choice 6 offers an ideal MVA rider. An MVA can decrease or increase the amount of withdrawal in excess of the surrender value or penalty-free withdrawal amount. If the MVA Index reduces, then the Cash surrender value increases. Contracts that have an MVA rider tend to have higher interest rates.
Death Benefit
With this fixed index annuity, the death benefit is paid out without surrender charges and in lump-sum to appointed beneficiaries. Other payment options might be available.
Qualified Care Needs
The below are available to all annuitants below the age of 75 at issue.
a) Nursing Care Rider
The NCR-100 rider allows the annuitant to get 100% of the Contract Value back (penalty-free) if they’re confided to a nursing center for more than 90 consecutive days after the 3rd contract anniversary. If the confinement happens within the 2nd or 3rd contract year, then a 20% penalty free withdrawal is permitted.
b) Terminal Illness Rider
The TIR-100 Choice 6 rider allows the annuitant to get 100% of the Contract Value back penalty-free if they have been diagnosed with any terminal illness after the 1st contact year.
Applicable Surrender Charges
Surrender Charges Schedule for Issue Age 18-85
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7+ |
| Surrender Charge (in percentage) | 9.2 | 8 | 7 | 5.5 | 4 | 2.5 | 0 |
Annuity advantages
- 6-year surrender schedule.
- Decent cap rates for a shorter-term product.
- There’s room for 1 uncapped strategy, with spread/potential for very high earnings.
