Last updated: March 2026 | Reviewed by: AnnuityJournal Editorial Team
American Equity built its entire company around one bet: that agents and retirees would rather have a straightforward income guarantee than a complex product packed with bonus fine print. That bet paid off — they’re now a top-5 FIA issuer. The AssetShield is their current flagship: no premium bonus theater, just competitive caps and a solid guaranteed income rider priced fairly for what you get.
This review covers the AssetShield’s crediting options, income rider mechanics, financial strength, and who this product actually makes sense for.
What Is the American Equity AssetShield?
The American Equity AssetShield is a fixed index annuity with a 7-year surrender period issued by American Equity Investment Life Insurance Company. It’s designed for retirement income accumulation, offering index-linked interest potential with a 0% floor and an optional guaranteed lifetime withdrawal benefit (GLWB) called the AssetShield Income Rider.
The 7-year surrender period is shorter than many competitors, which is one of the AssetShield’s most attractive features for buyers who aren’t sure they can commit to a full 10 years.
Current Cap Rates and Crediting Strategies (2026)
| Index Strategy | Cap Rate / Spread | Crediting Method |
|---|---|---|
| S&P 500 Annual Point-to-Point | ~8.00–9.50% cap | Annual, with cap |
| S&P 500 Performance Triggered | ~6.50% trigger rate | Annual trigger |
| BNP Paribas Multi Asset Diversified 5 | ~2.00% spread | Annual, spread |
| Bloomberg US Dynamic Balance II | ~130–150% participation | Annual, uncapped |
| Fixed Account | ~2.75% | Daily crediting |
Cap rates are approximate and as of early 2026. American Equity can adjust rates at each contract anniversary, subject to contractual minimums.
Income Rider: AssetShield Income Benefit
The optional income rider turns the AssetShield into a guaranteed income machine. Key details:
- Income Benefit Base: Grows at a guaranteed roll-up rate (typically 6–7% simple interest annually) during deferral
- Rider Fee: Approximately 0.95% of income base annually — deducted from account value
- Payout Rates: Age-based, applied to income base at withdrawal start
- Lifetime Guarantee: Once activated, income continues for life regardless of account value performance
- Joint Option: Available for spousal coverage with slightly reduced payout rate
Illustrative income on a $150,000 deposit with 8-year deferral:
| Age at Income Start | Approximate Annual Income |
|---|---|
| 65 | ~$10,500–$12,500/year |
| 70 | ~$13,000–$15,000/year |
| 75 | ~$15,500–$17,500/year |
American Equity Financial Strength
- AM Best: B++ (Good) — note: lower than some competitors
- S&P: BBB+ (Good)
- Total Assets: Approximately $80 billion
- Founded: 1995, West Des Moines, Iowa
American Equity’s ratings are solid but not in the A+ tier like Allianz or Nationwide. For most buyers with coverage under their state guaranty association limits, this is fine. However, buyers placing very large deposits ($500K+) may want to consider diversifying across carriers.
Check your state’s guaranty association coverage limits at our state guaranty association guide.
American Equity AssetShield Pros and Cons
Pros
- 7-year surrender period: Shorter commitment than 9 or 10-year competitors
- Competitive S&P 500 cap rates: Often among the top caps in the FIA market
- Straightforward design: No confusing bonus mechanics — what you deposit is what you have in your account value
- Performance trigger option: S&P 500 trigger pays a fixed rate if the index is flat or positive — good for sideways markets
- Strong income rider roll-up rate: Competitive guaranteed growth on income base
Cons
- Lower carrier ratings than some competitors: B++ vs. A+ for Allianz/Nationwide
- Income rider fee reduces account value growth: The ~0.95% annual fee compounds over time
- Cap rates subject to change: American Equity can lower caps at renewal within contractual minimums
- Proprietary indexes can underperform: The BNP Paribas and volatility-controlled indexes don’t always beat simple S&P 500 cap strategies
Who Is the AssetShield Best For?
- Ages 58–68 who want a shorter surrender period but still want a solid income guarantee
- Buyers who are uncertain about locking up money for 10 years — the 7-year period provides more flexibility
- Those who prefer a clean product without bonus complexity
- Buyers with $100K–$400K to allocate who fall within state guaranty association limits
If you’re in good health and don’t need the income rider, compare the AssetShield’s pure accumulation potential against the Athene Agility 10, which frequently offers higher cap rates.
How to Buy the American Equity AssetShield
American Equity products are sold exclusively through licensed insurance agents — not direct. An independent agent can illustrate the AssetShield alongside competitors and help you evaluate which FIA best fits your retirement income goals.
Before signing, verify:
- Current S&P 500 annual point-to-point cap rate
- Income base roll-up rate (confirmed in writing, not just agent’s statement)
- Full surrender charge schedule for years 1–7
- State guaranty association coverage for your state
Frequently Asked Questions
Is the AssetShield the same as the American Equity IncomeShield?
No. The IncomeShield is a different American Equity product with different terms, crediting options, and income rider design. Always confirm the exact product name and contract number on your illustration.
What is the minimum deposit for the AssetShield?
Minimum initial premium is typically $10,000, though this can vary by state. Many buyers invest $100,000 or more.
Can I add money to the annuity after I buy it?
Most FIAs, including the AssetShield, allow additional premium deposits during a specified window (often the first 60–90 days after issue). After that, no additional deposits are accepted.
How does the performance trigger strategy work?
The S&P 500 Performance Trigger pays a fixed rate (e.g., 6.50%) if the S&P 500 ends the year at or above where it started — even if the market only gains 0.01%. If the index ends lower than the start, you receive 0% (still no loss). It’s a useful strategy when you expect flat or modestly positive market conditions.
How does the AssetShield compare to a MYGA?
A MYGA gives you a guaranteed fixed rate with no complexity. The AssetShield gives you potential upside above that rate with a downside floor of zero. If current MYGA rates are high (above 5%), a MYGA may outperform the AssetShield’s expected average annual return in a flat or slowly rising market. Compare current rates at our best MYGA rates page.
