This is a fixed indexed annuity product from American Equity that allows your money to accumulate over a lengthy period of time. The contract credits a bonus on all premiums paid within the first premium year, thus allowing for even faster accumulation of interest compared to other fixed annuities. Although this bonus is immediately applied to the Contract Value, it’s vested over time. American Equity also vests the bonus 100% in the event of death, so that the policy holder’s beneficiaries get the full Contract Value, plus the 100% bonus.
Issue ages
Foundation Gold from American Equity is issued to anyone between up to the age of 80 years (0-80).
Minimum and maximum premium requirements
The minimum premium payment is $10,000
The maximum premium payment varies depending on the issue age.
- Ages 18-69 years – $1,500,000
- Ages 70-74 years – $1,000,000
- Ages 75+ years – $750,000
Bonus
American Equity gives a guaranteed 7% premium bonus on premiums received within the first year of the contract. This bonus is added to your Contract Value immediately you pay your premiums. The accrued bonus amount is calculated as the percentage of your Contract Value that results from your bonus, plus interest, minus withdrawal amounts. Surrender charges are not applicable to the accrued bonus amount.
Bonus vesting
Your bonus is vested over a period of 10 years. Each year following the first contract year, you’re vested in a percentage/portion of the bonus, till you hit the 100% vested mark after the 10th contract year.
Note: The vested amounts on the bonus are defined as the amounts that you might forfeit due to surrender or early partial withdrawal.
Interest rate
For the most accurate information regarding the applicable interest rate for this annuity product, get in touch with one of our financial professionals via the contact page.
Minimum guarantees
The minimum guarantee interest rate for American Equity Foundation Gold annuity currently stands at 1.5%.
Death Benefit
With Foundation Gold annuity from American Equity, your death benefit totals as the entire Contract Value of the annuity. It’s paid out in lump sum, and without any surrender charges, to your appointed beneficiaries.
Withdrawals
Accessibility to premiums is one of the most important factors that buyers weigh when comparing various annuity products. Foundation Gold is quite flexible when it comes to withdrawing your funds.
- Penalty-free withdrawals – the contract allows you to withdrawal up to 5% of the contract value penalty-free once each year. If you do not take this penalty-free withdrawal on any one year, it can be carried forward to the next year so that you get a total of 10% penalty-free withdrawal. Penalty-free withdrawals are not subjected to bonus vesting and surrender charges.
- Partial withdrawals – Foundation Gold makes it possible for contract owners to make partial withdrawals whenever they want. However, any amount withdrawn above the penalty-free threshold is subjected to surrender charges, as well as the bonus vesting schedule.
Surrender charges
Foundation Gold’s surrender charges start at 9% during the first year and then scale down to 8.25 during the second year, 7.25 during the third year, and so on until the end of the 10th year when the applicable surrender charge becomes zero.
