Don’t Let the Unforeseen Go Unplanned

AN AMERICAN EQUITY FIXED INDEX ANNUITY CAN HELP CLIENTS PREPARE FOR SURPRISES IN RETIREMENT

Unexpected costs – especially health care costs – can pose a significant burden for many individuals and their long-term income strategy. According to the U.S. Bureau of Labor Statistics, households in the U.S. led by someone age 65 or older spend an average of $6,668 a year on health care¹.

That’s not insignificant. Is it any wonder that 3 out of 4 Americans say that they would be “significantly set back financially” if they received an unexpected medical bill today²?

A fixed index annuity, like those from American Equity, can help clients weather the unforeseen health changes that sometimes happen during the golden years. Let’s look at the hypothetical case of Natalie, a near-retiree who worked with her financial professional to purchase an IncomeShield 10 fixed index annuity at age 60. Natalie liked the 10% premium bonus, and she chose a Lifetime Income Benefit Rider with Wellbeing Benefits that could double her income if she experienced a health event that left her unable to perform 2 out of 6 activities of daily living (ADLs).

Natalie: HYPOTHETICAL EXAMPLE

At age 69, Natalie slipped and fell after suffering a stroke. Now unable to perform two of the ADLs, she activated the Wellbeing Benefit. That doubled her income payment to $23,808, which helped her cover the increased expenses. Her income will return to the original $11,904 after she has recovered allowing her more assurance that the rest of her retirement savings were not impacted.

To learn more about IncomeShield 10 and to get a client-friendly flyer with Natalie’s case study, call American Equity Sales Support today at 888-647-1371.

1 Timmons, M. (2020, March 31). 61% of Americans Have Been Surprised by an Unexpected Medical Bill — and 37% Pay Without Question. ValuePenguin. https://www.valuepenguin.com/unexpected-medical-bills

2 Insured Retirement Institute and American Equity. “Aligning Retirement Expectations with Financial Resources. IRI Retirement Readiness Research Series. 2022

Annuities and Rider issued under form series ICC22 BASE-IDX-B, ICC22 IDX-11-10, ICC20 E-PTP-PC, ICC20 E-PTP-PR, ICC20 E-MPTP-C, ICC16 R-MVA, ICC20 R-LIBR-FCP, ICC20 R-LIBR-FSP, ICC20 R-LIBR-W-FCP, ICC20 R-LIBR-W-FSP, and state variations thereof. Availability may vary by state.

Lifetime Income available through optional Lifetime Income Benefit Rider. The wellbeing benefit can only be activated one time after a two year waiting period.

Bonus available on 1st year premiums. Each year after the 1st contract year, clients become vested in a percentage of the bonus, until 100% vested at the end of the 10th contract year.

Vested amounts of the bonus are the amounts not forfeited as a result of an early withdrawal or surrender. Bonus, surrender charges, and vesting schedules may vary by state. See brochure and disclosure for details.

American Equity Investment Life Insurance Company® does not offer legal, investment or tax advice. Each client has specific needs that should be discussed with a qualified legal or tax advisor.