Key Terms Listed here are key terms and definitions that may be useful when considering a fixed index annuity for your retirement.
Annuitization
Income Account
Conversion of the Cash Surrender Value of the annuity into regular guaranteed income payments.
This value is used solely to determine the amount of income to be received under the Lifetime Income Benefit Rider. It is not a traditionally accessible value. This serves as a measuring tool for purposes of the rider only. The interest rate used to calculate the interest credited to the Income Account Value. Contract owners choose from several index or fixed value crediting strategies, each offering different opportunities for growth. A joint life payout is available only to legal spouses, as defined under federal law. Both spouses must be at least 50 years of age and payment is based on the age of the younger joint payee. Payments are made through the life of the last surviving spouse, so long as spousal continuation is elected. At no time will the Cash Surrender Value of the contract be less than 87.5% of premium received, less any withdrawals, accumulated at the minimum guaranteed interest rate.
Value (IAV)
Accumulation Period
The period of time during which the Income Account Value is credited the Income Account Value Rate.
IAV Rate
Bonus Vesting
Starting in the second year, a percentage of the bonus becomes guaranteed annually; that percentage increases each year according to the bonus vesting schedule.
Interest Crediting Strategies
Cash Surrender Value
The amount paid to the contract owner by American Equity when the contract is surrendered.
Joint Life Payout
Contract Value
The total of the values in the annuity contract.
Death Benefit
The greater of the Contract Value or the Minimum Guaranteed Surrender Value. Available Death Benefit payment options are listed in the annuity contract. Opportunity each year, after the first contract year, to take withdrawals up to 10% of the Contract Value, without expense.
Minimum Guaranteed Surrender Value (MGSV)
Free Withdrawal
IncomeShield 10
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