Today’s Best American Equity Annuity Rates
| Term | Product | AM Best Rating | Rate |
|---|---|---|---|
| 3 Years | GuaranteeShield | A | 3.75 % |
| 5 Years | GuaranteeShield | A | 3.85 % |
| 5 Years | GuaranteeShield | A | 3.85 % |
American Equity
Our Take
American Equity has some solid offerings, particularly among fixed index annuities. While the company does provide useful brochures, actual rates are harder to come by online and its brief history could be a concern to some.
Pros
- Variety of annuity types available
- Strong fixed indexed options
Cons
- Younger company
- No variable annuity options
Compare American Equity Annuity Rates
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| Product |
Rate
|
Guarantee Period
|
Surrender Period
|
AM Best Rating
|
|---|---|---|---|---|
GuaranteeShield |
3.85% | 5 Years | 5 Years | A |
|
GuaranteeShield |
3.75% | 3 Years | 3 Years | A |
Additional Products Offered by American Equity
American Equity breaks down its annuity options into three categories: fixed index, fixed and immediate. Of these groups, most individual products are available in the fixed index category.
Fixed Index Annuities
American Equity provides four different fixed index annuity choices, each of which are a part of a different series.
The idea of the company’s series breakdown is that each grouping of annuities comes with its own set of special benefits. This helps customers zero in on the product that best highlights their goals for purchasing an annuity.
American Equity Fixed Index Annuities
| Series | Focus | Minimum |
| IncomeShield | Lifetime Benefit Riders | $1,000 |
| EstateShield | Enhanced Death Benefits | $1,000 |
| AssetShield | Accumulation | $1,000 |
| FlexShield | Customization | $1,000 |
IncomeShield Series
The IncomeShield series is essentially your standard fixed index option, offering eventual guaranteed income. It also has a helpful feature available known as the Wellness Benefit that can double your payout on a single policy or increase it by 150% on a joint policy if you can no longer perform two of six daily living activities.
This benefit is in place to help you manage the cost if you one day must move to an assisted living facility or nursing home. IncomeShield offers several different index options and strategies along with multiple payout choices.
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EstateShield Series
The EstateShield series shares many similarities to IncomeShield, including access to the Wellness Benefit. But this annuity offers a more enhanced death benefit setup.
If you opt for EstateShield, then the death benefit paid to your beneficiary can be paid out in a lump sum that is equal to 75% of the value of the contract, or in payments over five years that add up to 100% of the value.
Annuities typically do not have to go through probate, making a strong death benefit a powerful tool.
AssetShield Series
The next available product is the AssetShield series, which, as the name implies, puts a heavy emphasis on accumulation. The goal of AssetShield is to protect your initial investment while still accounting for and allowing for growth.
Customers can receive a 10% bonus on any premiums that are paid into the contract in the first year. One downside is that AssetShield does not have a Wellbeing Benefit.
FlexShield Series
American Equity also offers its FlexShield series, aimed at those looking for the most customization. This is a 10-year product that offers a lot of control to the customer and allows for your risk-and-reward profile to be customized each year. Simply put, it offers more flexibility than any other American Equity product.
Fixed Annuities
For customers who are solely interested in simple fixed products versus a more complex fixed index annuity, American Equity has a couple of different choices.
Its fixed annuities are known as its Guarantee Shield series, made up of GuaranteedShield3 (GS3) and GuaranteedShield5 (GS5). These are largely similar products that are tied to different lengths of time. GS3 has a three-year surrender schedule while GS5’s is five years.
The GuaranteeShield series offers the standard hallmarks that make fixed annuities attractive as a straightforward and low-risk product, such as a guaranteed interest rate and a death benefit that can be paid as the entire contract value.
Both versions also include a provision that can allow for 100% of the contract value to be withdrawn regardless of surrender schedule if you are diagnosed with a terminal illness or must move to a care facility.
The provision can provide some comfort for those who are held back by the lack of liquidity that comes with many annuities.
Immediate Annuities
Immediate annuities are some of the simplest products available, and American Equity doesn’t mince words when it comes to them.
There are no series or different variations here, making it a solid base product. If you wish to purchase an immediate annuity through American Equity, then your income payments will start 12 months after your lump sum is paid at the absolute latest.
You can choose to either opt for lifetime payments or for a specific term. That period may range from five to 25 years at your choosing.
Buy an Annuity From American Equity Today
About American Equity
American Equity is a new addition to the annuity space, first opening its doors in 1995. While it doesn’t have the history of some legacy providers, it has quickly cemented itself in the industry. Its assets had surpassed $8 billion by 2004 and had eclipsed $60 billion by 2021.
The company, which is based in Iowa, has grown steadily throughout its existence and has been on a consistent upward trajectory. It was acquired by a Canadian firm called Brookfield in July 2023.
It holds an AM Best Financial Strength Rating of A-, which is a step below many of the older and larger providers in the market.
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Credit Ratings
Credit ratings for annuity providers can help determine a company’s financial strength and stability — an indication that it will be around to guarantee payments to you in the future. Different rating companies use different scales.
American Equity Credit Ratings
| AM Best | A- |
| Fitch | A- |
| S&P | A- |
See which annuity providers our independent editorial team ranked as the Best Annuity Companies of 2024.
What Customers Are Saying About American Equity
Given the financial commitment that comes with purchasing an annuity, there can be some trepidation to working with a younger company that may not have the history of a legacy brand or the financial backing of being owned by a major global corporation.
But that hasn’t held American Equity back from being a popular option. That being said, its customer satisfaction appears to have declined significantly in the past year.
The 2023 J.D. Power Customer Satisfaction Index placed American Equity at the industry average score, with the company being surpassed by eight competitors. In 2024, this position remains the same, but American Equity’s score dropped from 800 in 2023 to 652 in 2024.
American Equity’s NAIC Complaint IndexNAIC Complaint IndexDetermined by dividing the company’s share of complaints in the U.S. market by the company’s share of premiums in the U.S. market. The National Complaint Index is always 1.00, so a score of 2.00, for example, is twice as high as expected in the market. – which measures a company’s share of complaints to its market presence – is also over 1.0, implying that there have been more complaints than expected, given the provider’s presence in the market.
NAIC Complaint Index for American Equity
| All Policy Types | 0.05 |
| Individual Annuities Only | 1.11 |
American Equity Pros & Cons
Fewer pros stand out more for American Equity than its fixed index offerings. Its ability to offer different series built around different benefits helps make it easy for consumers to find a product that matches up well with their goals and lifestyle.
Add-ons and benefits such as the Wellness Benefit are also strong perks. The company also stands out thanks to offering fixed and immediate products as well.
However, there are some noteworthy concerns. American Equity receives ratings of A- from AM Best, Fitch and S&P. To be clear, A- is not a bad score, but it is below many legacy providers.
When speaking generally about annuity providers, Nick Pangakis, a financial advisor with Capitol Financial Solutions, told Annuity.org that ratings can matter a great deal both to customers and when determining which providers he will work with.
“If it’s a company that’s 17 years old and is a B-rated company, maybe five years from now, that company’s doing great and has grown and is an A-rated company,” he said. “But I’d rather stick with somebody we know.”
He did note that he would work with a company rated A- if there was a product that particularly worked well for or stood out for a client, but that he tends to focus on higher-rated options.
If it’s a company that’s 17 years old and is a B-rated company, maybe five years from now, that company’s doing great and has grown and is an A-rated company. But I’d rather stick with somebody we know.
Nick Pangakis, a financial advisor with Capitol Financial Solutions
Given American Equity’s A- rating and relative youth, some customers may feel more comfortable looking elsewhere.
American Equity also falls short of some competitors when it comes to easily available information. The company offers online access to its brochures, but actual rates are not as easy to find and access.
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Provider Rating Methodology
Annuity.org created a fact-based methodology to analyze the strength, security and reach of different annuity providers. We assessed companies based on their availability, the number of direct premiums sold, their AM Best Financial Strength Rating and their NAIC Complaint Index score.
Providers received a rating on a five-star scale for each of these categories, with the complaint index and financial strength ratings weighed as the heaviest variables. Then, using a weighted average, each company was assigned an overall star rating.
Top-Ranked Annuity Providers
| Provider | Annuity.org Star Rating |
| Mass Mutual |  |
| New York Life | |
| Pacific Life | |
| Midland National | |
| North American | |
| Western & Southern | |
Our Rating Panel
The Annuity.org editorial team spoke with several different annuity experts to learn more about what is important to customers when searching for a provider and what factors make a company reliable. While Annuity.org designed the methodology, these experts provided feedback during the process and consulted on what factors we should leverage to best help prospective buyers compare providers.
