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American Equity Investment Life Insurance
 Archive: American Equity Investment Life Insurance
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October 1, 2024 American Equity Investment Life Insurance Views: 0
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What’s the cost of waiting 10 years?

By American Equity Sponsored By American Equity Investment Life Insurance

Understanding the cost of inaction can be an eye-opening insight for clients preparing to retire. Take for example the hypothetical case study below where we get into how much waiting 10 years may cost a client.

More Premium 

Consider two hypothetical 40-year-old pre-retirees, who both want to retire at 60 and draw $25,000 in annual lifetime income. Both choose to purchase an IncomeShield™ fixed index annuity to generate their lifelong income. One does so at age 40; the other at 50. As you can see below, the cost of waiting 10 years could require significantly more premium to generate the same amount of annual income.

Example shown for illustrative purposes only. Assumes no withdrawals are taken from the contract prior to income payments beginning. Excess withdrawals taken in addition to lifetime income payments will reduce future income payment amounts.

Help clients act on retirement goals.

American Equity has developed consumer-friendly tools aimed at helping clients understand the value of their time, and action plans for building a sound income strategy with fixed index annuities.

Take Action

Find out more IncomeShield™ 10 fixed index annuity with Lifetime Income Benefit Rider, click here.

* There is a 10-year surrender charge schedule for withdrawals exceeding 10% annually. The Lifetime Income Benefit is optional and may carry an annual fee. The Lifetime Income Benefit Rider is used to calculate lifetime income only and is not part of the contract value or available as a lump sum.

Bonus available only on IncomeShield 10. Bonus available on 1st year premiums. Each year after the 1st contract year, you 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. 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-EBR, 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. Available for issue ages 40+.Provisions of the Lifetime Income Benefit Rider, such as Income Account Value Accumulation Rates, may change prior to issue. IAV only used to calculate lifetime income payments. Not part of contract value or available in a lump sum. Interest grows until the earlier of payments beginning or the end of the IAV period. Certain eligibility requirements and restrictions may apply. Rider fee is calculated based on the income account value and deducted from the contract value on each contract anniversary as long as the rider is attached to the contract. Surrender charges may apply to excess withdrawals that exceed the annual free withdrawal available under the contract. You may be subject to a 10% federal penalty if you make withdrawals before age 591/2. Guarantees are based on the financial strength and claims paying ability of American Equity and are not guaranteed by any bank or insured by the FDIC.This is not a comprehensive overview of all the relevant features and benefits of IncomeShield 10. Please read the sales brochure and disclosure for complete details and limitations.This material is for informational purposes only, and is not a recommendation to buy, sell, hold or rollover any asset. It does not consider the specific financial circumstances, investment objectives, risk tolerance, or need of any specific person. In providing this information American Equity Investment Life Insurance Company is not acting as your fiduciary as defined by the Department of Labor.American Equity does not offer legal, investment or tax advice or make recommendations regarding insurance or investment products. Please consult aqualified professional.

For Representative use only. Not for use in solicitation or advertising to the public.

01ADINN-P-1024 10.01.24

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