American Equity Investment Life Insurance Company Reviews: Pros & Cons plus Detailed Policy Plans

American Equity Investment Life Insurance Company reviews assist people to find the right coverage plan to buy as they need and want. Choosing American Equity to invest their money also becomes the best idea for the policyholders saving money while creating death benefits for their loved ones. The American Equity adds the life insurance policy provides tax-deferred savings and the annuity can be used for getting a guaranteed lifetime income benefit.

American Equity has been operating for 17 years since 1995 and keeps loyal by serving customers with life insurance and annuity plans. Additionally, the insurer also provides fixed index annuity and retirement solutions in all 50 states and Washington D.C.

 

American Equity Company Profile And Ratings

American Equity Investment insurer is founded by David J Noble in 1995. He was an insurance executive and has worked for more than 65 years in this industry. The insurer based in Des Moines, Iowa belongs to a large part of a group of American Equity Investment Life Holding Company. It filled the group along with the American Equity Investment Life Insurance Company of New York and Eagle Life Insurance Company.

Nowadays, American Equity has hired over 650 employees and owned 26,000 active agents. The company also has 500,000 contract owners and funding over half a million retirements across the country. American Equity Investment Life Insurance Company reviews inform the company is rated by some rating agencies. It has been recognized by A.M. Best Company ®, Standard and Poor’s® Rating Service, and Fitch Ratings.

The purpose of the rating is to know the financial strength and business principles commitment.  Regardless of the purpose, it reflects the insurer’s stability and integrity in the industry. A.M. Best is a worldwide insurance-rating agency and it is the largest and oldest rating company. It measures the life insurance company rating through cost control and management experience, investment quality, capital adequacy, and policy reserves. A.M. Best gives an “A” or excellent rating for American Equity Investment Life Insurance Company.

Standard and Poor’s Rating Service is also assigned American Equity insurer with an “A” rating. This rating agency is known as a leader in financial-market intelligence. Now, it offers market information like credit rating, investment research, indices, and risk evaluations and solutions. Equal to A.M. Best and Standard and Poor’s Service, Fitch Ratings assigned American Equity Investment Life Insurance insurer with an “A” (Outlook Negative) rating as an insurer’s financial strength. Fitch Ratings is the seventh-highest rating agency.

 

Pros and Cons of American Equity Investment Life Insurance Company

American Equity Investment Life Insurance Company reviews reveal the pros and cons of the insurer in detail. This point is essential to figure out and should become a consideration material in convincing the applicant’s decision.

American Equity Investment Life Insurance Company Reviews

 

Pros

American Equity insurer pros appear three points nationwide coverage, multiple plans, and lucrative riders. The nationwide coverage means the life insurance company has licensed in all 50 states and is available in Washington D.C. Multiple plans is a benefit for the applicants in choosing plans through a big selection and increasing the likelihood of finding a plan to meet the applicant’s needs. Then, the lucrative riders mean the American Equity provides rider insurance as additional protection, protecting, riders to boost or lengthen income to policyholders.

 

Cons

There are three points of American Equity cons including annuity-based products, low credit rates, and an extended surrender period. The annuity-based products do not suit people if they look for the more traditional life insurance form. Low crediting rates in American Equity insurer is lower than other competitors in S&P 500. Later on, expended surrender periods will be got depending on the plan. The policyholders may face extended surrender charge periods until 11 years or more.

 

Guaranteed Series American Equity Investment Term Life Insurance

American Equity Investment Life Insurance Company reviews focus on the guaranteed term life policy. The guaranteed term life insurance is offered for applicants from the age of 18 to 85. It has three-term insurance plans under the Guaranteed Series.

The beneficiaries of the policy are entitled to the entire contract value if the applicant dies. American Equity insurer will pay them without surrender charges. The insurer provides a lump-sum payment as the most popular payout option though it still offers other payment options.

If the policyholders do not die yet until the contract end, they have 30 days to renew the contract to another guaranteed term life policy. They allow applying the contract value to a settlement without surrender charges. Alongside that, they may surrender the contract with no surrender charge.

The contract will automatically renew for a new term if there is no decision from the applicant after 30 days from the contract’s end. The new term life policy has the same length based on the prior policy contract. But, it may give new rules related to the different guaranteed interest rates. The applicant will get a higher interest rate, income tax, and distribution prior the age to the age of 59½ to face additional IRS penalties.

 

Guaranteed Series

American Equity Investment Life Insurer offers three options of Guaranteed Series including the Guaranteed 5, Guaranteed 6, and Guaranteed 7.  The Guaranteed 5 term is a savings plan that is available with a five-year term with the coverage starting from $10,000. The applicants will get a surrender charge of 9% in one year, 8% for 2 years of the policy, 7% in 3 years, 6% in the fourth year, and for five years of the policy gets 5%.

Guaranteed 6 term means the applicants have a 6-years term payment with a minimum face value of $10,000. The surrender charge for the first year is 9%, 2-years are 8%, 3-years are 7%, 4-years are 6%, 5-years are 5%, and the 6-years are 4%. Later on, the Guaranteed 7 term plan is for a 7-year payment with 1-year is 9%, 2-years are 8%, 3-years are 7%, 4-years are 6%, 5-year is 5%, 6-years are 4%, and the 7-years are 3%.

 

Guaranteed Shield Series

The third Guaranteed Series of American Equity has featured a deferred fixed annuity with penalty-free withdrawals and a single premium. Besides offering the Guaranteed Series, the applicants can choose the Guaranteed Shield Series. It will be the best choice if you are looking for stability in your finances. The American Equity Investment Life Insurance Company reviews claim it is fixed annuity products with fixed rates, a single premium, and tax-deferred growth.

The Guaranteed Shield Series allows the contracting member to access up to 10% of the contract value after the first year. American Equity gives this policy as it offers a free withdrawal option with guaranteed principal protection when the applicants hit tough times in the future. Unluckily, the series is not available for American Equity Investment Life Insurance Policy in New York.

After the policy end, the policyholders have 30 days to choose one of 5 following options:

  • Renew the contract for getting a new guaranteed period
  • Do a free withdrawal to apply for the balance of contract value to a new guarantee period
  • Annuitize contract for annuity payments
  • Surrender contract without market value adjustment or any surrender charges
  • Continue contract without any surrender charges

Equal Guaranteed Series, the Guaranteed Shield Series change automatically to a new contract with a 1% minimum guaranteed interest rate. Even though it is no surrender charge and the minimum interest rate may vary each year. In addition, the Guaranteed shield Series offer two options including GuaranteedShield3 and GuaranteedShield5.

The GuaranteedShield3 is a 3-year term with the surrender charge plan depending on the contract year. Even though, the rule of the GuaranteedShield3 is different for California residents. The 1-year policy takes a surrender charge of 9% but the California residents ask for 8.30%. The second year of the contract needs 8% of the surrender charge and the California resident asks for 8.25%. Then, the 3-year of contract asks for 7% of the surrender charge and the California resident takes 7.25%.

Next, American Equity Investment Life Insurance Company Reviews describe the GuaranteedShield5 for a 5-year term. The surrender charge for the first year is 9% but for California residents is 8.30%. The second year asks for 8% while California residents must spend 8.25%. The third year needs 7% of the surrender charge and California resident needs 7.25%. The fourth-year will take the surrender charge of 6% but California resident needs 6.25%. Meanwhile, the fifth year takes the surrender charge of 5% and California resident asks for 5.20%.

 

American Equity Investment Rider Life Insurance

Besides providing a term life policy, American Equity Investment adds rider life insurance. The rider life insurance is dedicated to the riders and it is adjustable to the policyholders’ option. Lifetime Income Benefit Rider (LIBR) is the product name of the American Equity insurer. It carries some benefits like receiving guaranteed income payment for life, Enhanced Death Benefit, 150% for joint policies, and Wellbeing Benefit. The Enhanced Death Benefit gives a greater benefit than the base contract. The joint policies take for a maximum of five years but the applicants must meet the eligibility requirements. Wellbeing Benefits can increase the single income payment by 200%.

American Equity still provides several other life insurance riders. It can be purchased according to the planning applicant chooses. The rider life insurance is added in Guaranteed Series 5 and 7, GuaranteedShield3 & 5, EstateShield10, AssetShield 5, 7, & 10, IncomeShield 7 and 10, Destinations 9 and 10, and Gold Series (Bonus Gold and Retirement Gold).

 

The Advantages of American Equity Rider Life Insurance

American Equity Investment Life Insurance Company reviews add some benefits to the rider’s life term.

 

Market Value Adjustment (MVA)

It provided optional coverage on how much the applicant can withdraw according to current market conditions (increase or decrease). MVA allows the increase or decrease of the amount of a withdrawal though it exceeds the surrender value or penalty-free withdrawal amount. It can increase the policy’s interest rates.

 

Nursing Care Riders

The Nursing Care Rider begins after the policy’s third contract anniversary but it is not available in Massachusetts. It applies if the rider becomes confined to a qualified for a minimum of 90 days. The riders can make a 20% penalty-free withdrawal in the second or third contract year.

 

Enhanced Benefit Rider

The Enhanced Benefit Rider makes the applicant receive a 4.5% rate for the income account value. The beneficiaries get the option to choose from a regular payment schedule or a lump-sum payment. But, it causes the rider to get a fee of 0.70% of the contract’s total value.

 

Qualifying Nursing Care Benefit

The Qualifying Nursing Care Benefit applies after the first contract year but the rider must be qualified in the care facility for 90 days or more.  It also allows the rider does a one-time withdrawal of up to the total contract value.

 

Rate Integrity Rider

The Rate Integrity Rider waives surrender charges when the applicant terminates the annuity contract. It is limited to crediting strategies, and a participation rate.

 

Terminal Illness Rider

The Terminal Illness Rider applies after the first-year contract and offers a 100% penalty-free withdrawal when the rider gets a terminally ill diagnosis. It is not available in Massachusetts.

 

Conclusion

American Equity Investment Life Insurance Company reviews present detailed information on the company profile, pros& cons, also the term life plans. The information is enough to consider which best life insurance term is based on your need.

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