American Equity’s RateShield 10+ is a flexible fixed deferred annuity that offers a 1-year interest rate guarantee, and a surrender charge duration of 10 years. This annuity also has an optional lifetime income rider that comes at an extra free. The annuity also includes 5% premium bonus credit for all premiums paid in the first policy year. This bonus gets vested over a 10-year duration. In the event of the death of the annuity owner, the bonus is vested 100%.
Rate Guarantees
During the first year, this annuity offers a fixed interest rate of 6.52. This is comprised of a guaranteed interest rate of 1.45% and a first-year premium bonus of 5%.
RateShield Premium Bonus
RateShield 10+ from American Equity has a premium bonus based on all premiums paid within the 1st contract year. This bonus is immediately applied to the Contract Value, and vests over time. This essentially makes the RateShield 10+ a great annuity for buyers who’re looking for some form of jump start bonus.
Premium Bonus Vesting
The RateShield 10+ premium bonus vests over a duration of 10 years. A certain percentage is vested yearly after the 1st contract year, up until 100% is vested at 10th year. The vested value of premium bonus is guaranteed. That means it can’t be forfeited due to surrender or partial withdrawal.
Bonus vesting schedule
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11+ |
| Percentage Vested | 0 | 10 | 20 | 30 | 40 | 50 | 60 | 70 | 80 | 90 | 100 |
Surrender Values and Charges
The surrender value of the annuity is guaranteed to be no less than 87.5% of premiums received, less withdrawals and computed at the MGIR (Minimum Guaranteed Interest Rate). If surrender or partial withdrawals are made during the surrender charge duration, deductions are made based on the surrender charge schedule.
Surrender charge schedule
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11+ |
| Surrender Charge Percentage | 9.10 | 9.10 | 8.50 | 7.50 | 6.50 | 5.50 | 4.50 | 3.40 | 2.30 | 1.10 | 0 |
Options and features for money access
- Free withdrawals – each year, annuitants have an opportunity to withdrawal up to 10% of their Contract Value free of charges.
- Partial withdrawals – partial withdrawals are available at all times. However, any partial distributions over the free withdrawal threshold are subjected to withdrawal charges, and the premium bonus vesting applies.
- Qualified care needs – both the NCR-100 and TIR-100 qualified care needs rider are available for all annuitants below the age of 75 at issue.
- Death benefit – with American Equity RateShield 10+ annuity, the death benefit is paid out to named beneficiaries, without any surrender charges.
