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Fixed Index Annuity
EstateShield 9 Fixed Index Annuity
Your retirement is unique to your goals and lifestyle, yet many retirees share many of the same key objectives, such as: asset growth opportunities, principal protection from market loss, guaranteed lifelong income and the potential for retirement income to keep pace with rising costs. That’s why, when preparing the retirement you’ve worked toward, you may want to consider how the EstateShield 9 fixed index annuity can work for your financial objectives throughout and after your retirement.
Retirement Unknowns Retirement is Changing
Living Longer We are living longer. A retiree turning 65-years old today is expected to fund more than two decades of retirement. And, that’s just the average. 1
1 in 4: 65-year-old men live to 93 1 in 4: 65-year-old women live to 96 1 in 4: 65-year-old married couples one will live to 98 65-year-old married couple: 14% chance one will live to 100
Market Risk The reality is that most people planning to retire in the near future will be impacted by a bear market.
Historically, the average time between bear markets is 3.6 years.²
Income Sources 3 The traditional “three-legged stool” approach to retirement income is changing. Only 7% of older Americans’ draw retirement income from a trio of income sources: Social Security, Direct Benefits and Direct Contribution.
Direct Contribution, 3%
Direct Bene t, 4%
Direct Bene t, Direct Contribution, and Social Security, 7%
Direct Contribution and Social Security, 15%
Social Security Only, 40%
Direct Bene t and Direct Contribution, 1%
40% 35%
5% 0% 30% 25% 20% 15% 10%
3
Secure Your Retirement Income & Estate Fixed Index Annuity Basics
What is a Fixed Index Annuity? A fixed index annuity is a contract backed by the financial strength and claims paying ability of the issuing company. This guarantees contract owners a retirement vehicle designed to protect assets while allowing for growth opportunities. It does this through a combination of powerful benefits: • Principal Protection • Tax Deferral • Growth Opportunities • Guaranteed Lifetime Income • May Avoid Probate
How a Fixed Index Annuity Works A Fixed Index Annuity is an insurance contract. It offers tax deferral, principal protection, and guaranteed lifetime income. Throughout the course of the contract, the fixed index annuity can earn additional interest credits based on the changes of an external index. As an insurance product, the fixed index annuity is not directly invested in any index. So, principal is always protected from market loss while providing an opportunity to earn interest based on changes to an external index. The annuity cannot lose money due to index volatility and the interest credited will never be less than zero.
Shield Retirement Income for Life and Legacy The EstateShield 9 fixed index annuity is designed to help shield a portion of your portfolio for retirement unknowns that may stand in the way of your income and legacy goals. With benefits like principal protection from index volatility, a premium bonus on lifetime income benefits, guaranteed income with rising lifetime income opportunities, and legacy options for beneficiaries, the EstateShield 9 offers a powerful combination of potential retirement solutions.
35%
35% BAV Bonus
Growth Opportunities
Guaranteed Lifetime Income
Increasing Lifetime Income Payment Potential
Enhanced Legacy Benefit Options
EstateShield 9
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EstateShield 9 Long-term Retirement Product Designed for Lifetime Income & Legacy Benefits
Premium Allocations Purchasing an EstateShield 9 fixed index annuity allows you to start growing your lifetime income and beneficiary benefits from the start. On day one, the initial premium payment can be allocated in a combination of fixed interest and index-linked crediting strategies. Throughout year one, you have the option to add more money to your annuity. Any additional premium adds to your Benefits Account Value (BAV) and boosts your lifetime income and benefit reserves. All payments received after the initial premium automatically go into the fixed interest strategy until the first contract anniversary. Contract Anniversaries The Contract Value may be reallocated to a combination of crediting strategies at the contract anniversary (or at the end of a two-year crediting strategy). Allocations are subject to these minimums: •Minimum allocation: $1,000 per value •Minimum transfer: 10% of Contract Value All year-one premiums receive a Benefits Account Value Bonus. Benefits Account Value Bonus Any premium you pay year one is established as the benefits account value and receives a bonus. This bonus is available as part of the lifetime income withdrawal reserve after 10 years, and as part of the enhanced death benefit option for beneficiaries. Allocation Options Contract owners can allocate money using multiple interest crediting strategies: Fixed Interest Strategy – The Fixed Interest Strategy Initial Interest Rate is set at issue and guaranteed for the Initial Interest Rate Guarantee Period, which will never be less than one year. The Fixed Interest Strategy will never earn less than the Minimum Guaranteed Interest Rate of 0.50%. Indexed Strategies – This annuity contract also offers indexed strategy options to which premiums may be directed.
The indexed strategies utilize a formula linked to one or more published indices. The indexed strategies currently offered are: • Monthly Point to Point – On each contract anniversary, interest credits are calculated based on monthly changes in the index over a one year period. •Annual Point to Point – On each contract anniversary, the index price is compared to the previous year’s index price. The interest credit is based on changes in the index price from point to point. •2-Year Point to Point - On the contract anniversary at the end of a two-year term, the index price is compared to the term’s beginning index price. The interest credit is based on changes in the index price from point to point. Calculation Information Caps or Participation Rates are applied to Indexed Strategies as part of the interest credit calculation. •Cap – Cap means the maximum rate that will be used in determining any interest credits to the strategy value. •Participation Rate (PR) – A PR means a percentage that determines how much of any gain in the index will be credited to the contract as interest.
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Index Options Diversified Growth Potential with Trackable and Transparent Indices
BlackRock ® Adaptive U.S. Equity 5% Index This index is designed to deliver exposure to BlackRock’s iShares ® Core S&P 500 ® ETF, three fixed income U.S. Treasury iShares ® ETFs and a cash component, while adaptively rebalancing daily based on macro conditions. Ticker: BAUSE5X BofA Destinations Index™ (Multi-Asset) Designed in collaboration with Bank of America, this exclusive-to-American Equity volatility control index aims to deliver stability and growth in changing market conditions. Ticker: BOFADST5 UBS Tech Edge Index (Multi-Asset) The excess return index combines four U.S. tech- and biotech-focused ETFs and two fixed income components. It utilizes a cutting-edge target volatility control mechanism, powered by Salt Financial, to identify changing market conditions by using a combination of intraday and
SG Global Sentiment Index A global excess return index that uses six cross asset capital market indicators to assess market sentiment and determine whether the market is in a growth, intermediate or shrinking phase. Once the market phase is determined, the index allocates assets across a predetermined global and diverse asset base including ETFs and domestic, European and Asian indices. Ticker: SGIXSENT S&P 500 ® (Equity only) Considered one of the best gauges of large-cap U.S. equities, it consists of 500 leading publicly traded companies in the U.S., covers approximately 80% available market capitalization and rebalances quarterly. Ticker: SPX S&P 500 ® Dividend Aristocrats ® Daily Risk Control 5% Excess Return Index Offers exposure to S&P 500 ® Dividend Aristocrats ® Index, consisting of companies in the S&P 500 Index that have consistently increased dividends in each of the past 25 consecutive years, with the added stability of a cash (interest-
end-of-day data. Ticker: CSEATEDG
free) component. Ticker: SPXD5UE
Locked In Growth All crediting strategies automatically reset on an annual or biennial basis, depending on the strategy term, at which time any earned interest is locked in and cannot be lost due to index declines.
$100,000 $110,000 $115,000 $120,000 $125,000
Contract Value Index Performance
First two years, contract value increases with index and
1
3
automatically resets at contract anniversary. 2 Year three, index declines but contract value is protected from negative index change. 3 Year four, due to automatic reset, positive changes in the index allow the contract value to grow without having to recoup from loss in down year.
1
2
$95,000
$90,000 $85,000
Start
Year 1
Year 2 Year 3 Year 4
EstateShield 9
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EstateShield 9 Lifetime Income Benefit Rider Offers Lifelong Income at No Fee
Lifetime Income Benefit Rider (LIBR) The LIBR is automatically included with the contract. This provides security through a stream of income payments to the owner. Income payments are guaranteed for life, subject to the withdrawal provisions of the rider. It also allows for continued access to contract values, and the flexibility to start and stop income payments. In addition, an Enhanced Death Benefit, which may provide a greater benefit than the base contract, is included with the LIBR. Income Payments To help build retirement assets into an income stream that cannot be outlived, the EstateShield 9 has two built-in benefits designed to deliver continued benefit growth.
Benefits Account Value (BAV) Bonus: Starting year one, a BAV Bonus is applied to every dollar paid in the first 12 months. This is an immediate increase to your BAV, which is used to calculate lifetime income payments and benefits. BAV Multiplier: Each year after, any interest credited to the contract value is increased by the BAV Multiplier. Lifetime income withdrawals can begin after 10 years, or can be left
to continue to grow for as long as you want. Potential for Income Payment Increases
When lifetime income payments begin, payouts can continue to increase with the BAV Multiplier. The annual income payment amount will be increased by an amount equal to the current annual income payment multiplied by the BAV growth rate.
LIBR Payout Factors Lifetime income payments can begin on the day after the tenth contract anniversary date, or later. The amount of income available will depend on multiple factors, such as the amount of time the BAV grows, age at the time payments begin and the frequency of the payment option chosen. The table below lists the lifetime income payout factors, by age, for both single and joint lifetime income payments.
Payout Factors by Age
Age
Single
Joint
50-59
4.50%
4.00%
60-69
5.00%
4.50%
70-79
5.50%
5.00%
80+
6.00%
5.50%
7
7
Money Access Liquidity and Enhanced Death Benefit Rider Options
Free Withdrawals This is an opportunity each year (after the first contract year) to take Free Withdrawals up to 10% of the total
premiums paid. Death Benefit
Death Benefit proceeds are paid to the surviving joint owner. If there is no surviving joint owner, the Death Benefit is paid to the named beneficiary(ies) with no Surrender Charges. Generally paid in a lump-sum, other payment options are also available. The death benefit of the contract prior to the maturity date will be equal to the greater of (1) The contract value, or (2) The MGSV. The beneficiary(ies) may choose to receive the death benefit in a lump sum or anather payment option available in the annuity contract. Enhanced Death Benefit Rider Options Beneficiaries may elect to receive the enhanced death benefit in place of the death benefit provided under the base contract. Beneficiaries may choose to take a single lump-sum payment or a series of equal payments over a period of five years.
Enhanced Death Benefit Rider
Lump Sum
Multiple Payments
75% BAV amount Paid in lump sum
100% BAV amount Paid in equal payments over five years Includes BAV bonus and enhanced interest rate credits
Includes BAV bonus and enhanced interest rate credits
Limited to the greater of: • 125% of the surrender value provided under the base contract, and • Premiums received accumulated at 10% annual effective rate, but not exceeding 250% of all premiums received (minus any withdrawals including withdrawal charges)
EstateShield 9
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EstateShield 9 Market Value Adjustments (MVA) and Surrender Charge Schedule
Market Value Adjustment (MVA) This product contains an MVA Rider. An MVA may increase or decrease the amount of a withdrawal in excess of the Free Withdrawal amount or the Surrender Value. The MVA does not apply to Free Withdrawals, any Death Benefit, the
MGSV, or any distributions occurring after the Surrender Charge Period has ended. In general, as the MVA Index increases, Cash Surrender Values decrease. As the MVA Index decreases, Cash Surrender Values increase.
Surrender Values and Charges The annuity’s Surrender Value will never be less than 87.5% of the premium received, less any withdrawals, accumulated at the minimum guaranteed interest rate. If a Partial Withdrawal above the Free Withdrawal or a Surrender is taken during the Surrender Charge period, a deduction will be taken out according to the Surrender Charge schedule.
Surrender Charge Schedule (Age 40-75)
1
2
3
4
5
6
7
8
9 10+
Contract Year
8% 8% 7% 6% 5% 4% 3% 2% 1% 0%
EstateShield 9
9
EstateShield 9
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EstateShield 9 with LIBR and Enhanced Death Benefits
To demonstrate how the EstateShield 9 with LIBR and Enhanced Death Benefit Rider may help your portfolio throughout retirement and after, let’s look take a closer look with hypothetical demonstrations of the product in the accumulation and income phases.
Accumulation Phase Ongoing Growth Potential
In this hypothetical example, the contract owner purchases a $100,000 EstateShield 9 fixed index annuity. The table below shows 10 years of BAV growth with a 35% BAV Bonus, 150% BAV multiplier linked to the S&P 500 ® with a 4.25% annual point to point cap crediting strategy. BAV Growth
$220,000
$208,071 $208,071
$210,000
$200,000
$195,601
$190,000
$183,879
$180,000
$172,859
$172,859
$170,000
$162,500
$160,000
$152,761
$152,761
$150,000
$143,606
$140,000
$135,000
$130,000
$120,000
012345678910 YEARS This hypothetical is an example shown for illustrative purposes only and is not guaranteed. Actual results will vary and potential interest earned will fluctuate each year.
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EstateShield 9
Income Phase Lifetime Income and Increasing Payout Potential
EstateShield 9
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EstateShield 9 Lifetime Income with Increasing Payout Demonstration
Hypothetical Example After 10 years, the contract owner opts to turn on lifetime income benefit payments at age 65, with a 5% payout factor, resulting in an initial annual payout of $10,404. Because of the increasing income potential of the LIBR, income payments have the potential to increase with positive index changes and the BAV Multiplier is applied to any credited interest. In this example with a 4.25%
annual point to point cap on the S&P 500 ® during the income phase, income payments continue to increase in positive years and maintain during negative years. For example, the graphs below show how income payments may increase in the year following positive index changes, but remain protected in the year after a negative index change.
INDEX PERFORMANCE
1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000
4,766
3,840
3,756
3,231
2,674
2,507
2,239
2,059
2,044
1,848
YEAR 20 -19.44%
YEAR 11
YEAR 12 YEAR 13 YEAR 14 YEAR 15 YEAR 16 YEAR 17 YEAR 18 YEAR 19
11.39%
-0.73%
19.42% -6.24%
16.26%
9.54%
28.88%
26.89%
INDEX CHANGE
INCREASING INCOME
$16,035
$15,074
$14,170
$13,321 $13,321
$12,523
$11,772 $11,772
$11,067
$10,404
YEAR 11 YEAR 12 YEAR 13 YEAR 14 YEAR 15 YEAR 16 YEAR 17 YEAR 18 YEAR 19 YEAR 20
No change
+6.38% +6.38%
+6.38%
+6.38%
+6.38% +6.38% +6.38%
No change
INCOME CHANGE
This hypothetical is example is shown for illustrative purposes only and is not guaranteed. Actual results will vary and potential interest earned will fluctuate each year.
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EstateShield 9
Key Terms Glossary of Useful Product Definitions
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EstateShield 9
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Annuitization
Conversion of the Cash Surrender Value of the annuity into regular guaranteed income payments. The BAV is the value used to calculate lifetime income payments and enhanced death benefits. The initial BAV is the initial premium paid plus the BAV Bonus. The amount paid to the contract owner by American Equity when the contract is surrendered.
Benefits Account Value (BAV)
Cash Surrender Value
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. Beneficiary may elect to receive the enhanced death benefit in place of the death benefit provided under the base contract. The beneficiary may choose to receive the enhanced death benefit as either a single lump-sum payment or a series of payments over a period of five years. Opportunity each year, after the first contract year, to take withdrawals up to 10% of the total premiums paid, without expense.
Enhanced Death Benefit
Free Withdrawal
15
Key Terms Glossary of Useful Product Definitions
Interest Crediting Strategies
Partial Withdrawal
Contract owners choose from several index or fixed value crediting strategies, each offering different opportunities for growth. Joint annuity owners must be married to elect a joint life payout. Payment factor is based on the age of the younger joint payee at election. 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.
Available at any time, for partial distribution over the Free Withdrawal amount. Surrender Charges and minimum values will apply. For the owner and sole annuitant, payouts are based on age at election. Termination of the contract in exchange for Cash Surrender Value. Fee charged, when applicable, for full or partial distribution over the Free Withdrawal amount.
Joint Life Payout
Single Life Payout
Surrender
Minimum Guaranteed Surrender Value (MGSV)
Surrender Charge
EstateShield 9
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Disclosures
Annuity Contract and riders issued under form series CA21 BASE-IDX-MSP, 21 MSP-9, 20 E-MPTP-C, 20 E-PTP-C, 20 E-PTP-PR, CA19 R-MVA-9, and 21 R-LIBR-BAV. Surrender charges may apply to excess withdrawals that exceed 10% annual free withdrawal available under the contract. You may be subject to a 10% federal penalty if you make withdrawals before age 59½. Possible interest credits for money allocated to an index-linked crediting strategy are based upon performance of the specific index; however, fixed index annuities are not an investment, but an insurance product, and do not directly invest in the stock market or the index itself. 1 Social Security Administration. Retirement Benefits. 2022. https://www.ssa.gov/oact/STATS/table4c6.html 2 Ned Davis Research as of 12/15/21. Past performance is not indicative of future results. 3 National Institute on Retirement Security. “Examining the Nest Egg: The Sources of Retirement Income for Older Americans” 2020 https://www.nirsonline.org/wp-content/uploads/2020/01/ Examining-the-Nest-Egg-Final.pdfv 4 As of 12/31/22- Assets $58.99 billion, Liabilities $55.30 billion. 5 A.M. Best has assigned American Equity an “A-” (Excellent) rating, reflecting their current opinion of American Equity’s financial strength and its ability to meet its ongoing contractual obligations relative to the norms of the life/health insurance industry. A.M. Best utilizes 15 rating categories ranging from A++ to F. An “A-” rating from A.M. Best is its fourth highest rating. For the latest rating, access www.ambest.com. Rating effective 8/2/06, affirmed 9/9/22. 6 Standard & Poor’s rating service has recognized American Equity Investment Life Insurance Company with an “A-” rating. An insurer rated “A” has strong financial security characteristics, but is somewhat more likely to be affected by adverse effects of changing circumstances or economic conditions than are insurers with higher ratings. Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. Rating effective 8/5/15, affirmed 11/8/22. 7 Fitch Ratings assigned American Equity Investment Life Insurance Company an Insurer Financial Strength rating of “A-” (Outlook Stable). Fitch Ratings utilizes 19 rating categories ranging from “AAA” to “C.” An “A-” rating is the seventh highest rating. An insurer with an “A” rating is considered to have a strong capacity for payment of financial commitments, but may be more vulnerable to adverse business or economic conditions than insurers with higher ratings. Outlooks indicate the direction a rating is likely to move over a one- to two-year period if current financial or other trends continue. For more information, please visit www.fitchratings.com. Rating effective 5/5/2021. Affirmed 12/8/22. This material is for informational purposes only, and is not a recommendation to buy, sell, hold or rollover any asset. It does not take into account 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 The BlackRock Adaptive US Equity 5% Index (the “Index”) is a product of BlackRock Index Services, LLC and has been licensed for use by American Equity Investment Life Insurance Company (“American Equity”) as a component of EstateShield (the “Product”). BlackRock ® , BlackRock Adaptive US Equity 5% Index™, and the corresponding logos are registered and unregistered trademarks of BlackRock. The Product is not sponsored, endorsed, sold or promoted by BlackRock Index Services, LLC, BlackRock, Inc., or any of its affiliates, or any of their respective third party licensors (including the Index calculation agent, as applicable) (collectively, “BlackRock”). BlackRock has no obligation or liability in connection with the administration or marketing of Product. BlackRock makes no representation or warranty, express or implied, to the owners of the Product or any member of the public regarding the advisability of investing the Product or the ability of the Index to track general market performance. BlackRock does not guarantee the adequacy, accuracy, timeliness, and/or completeness of the Index or any data or communication related thereto nor does it have any liability for any errors, omissions or interruptions of the Index. The BofA Destinations Index™ (the “Index”) has been created and is owned by BofA Securities, Inc. and its Affiliates (collectively, “BofAS”); the Index has been licensed to American Equity Investment Life Insurance Company (“American Equity”). Neither American Equity nor any fixed index annuity (the “Product”) is sponsored, operated, endorsed, sold or promoted by BofAS. BofAS has not passed on the legality or suitability or appropriateness of, or the accuracy or adequacy of descriptions and disclosures relating to, the Product, nor makes any representation or warranty, express or implied, to the owners of the Product or any member of the public regarding the Product or the advisability of purchasing the Product, particularly the ability of the Index to track performance of any market or strategy. It is the recommendation of BofAS that individuals consult with a financial professional prior to taking an exposure to the Product and/or the Index. BofAS’ only relationship to American Equity is the licensing of certain trademarks and trade names and the Index or components thereof. The Index has been designed, determined, composed, calculated, maintained and sponsored by BofAS without regard to the Licensee or the Product or its holders. BofAS has no obligation to take the needs of the Licensee or the holders of the Product into consideration in designing, determining, composing, calculating, maintaining or sponsoring the Index or any decision to cease doing so. BofAS is not responsible for and has not participated in the determination of the timing of, prices of, or quantities of the Product to be issued or in the determination or calculation of the equation by which the Product is to be priced, sold, purchased, or redeemed. BofAS has no obligation or liability in connection with the administration, marketing, or trading of the Product. Obligations to make payments under any Product are solely the obligation of American Equity pursuant to the terms of the contract between American Equity and a purchaser and are not the responsibility of Equity does not offer legal, investment or tax advice or make recommendations regarding insurance or investment products. Please consult a qualified professional. 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.
17
Disclosures
BofAS. The selection of a BofAS index as a crediting option under the Product does not obligate American Equity or BofAS to invest annuity payments in the components of the Index or in other products linked to the Index. BOFAS DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA INCLUDED THEREIN AND BOFAS SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, UNAVAILABILITY OR INTERRUPTIONS THEREIN. BOFAS MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, HOLDERS OF THE PRODUCT OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR ANY DATA INCLUDED THEREIN. BOFAS MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, WITH RESPECT TO THE INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL BOFAS HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, INCIDENTAL, CONSEQUENTIAL DAMAGES, OR LOST PROFITS, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. “BofAS”, “BofA” and the “BofA Destinations Index” are trademarks of BofA Securities, Inc. or its Affiliates and have been licensed for use by American Equity. Attributions and Disclaimers with Respect to UBS The UBS Tech Edge Index (formerly known as the “Credit Suisse Tech Edge Index”) and “UBS”, and any trademarks, service marks and logos related thereto, are service marks of UBS AG or one of its affiliates (collectively, “ UBS ”). UBS has no relationship to the [issuer], other than certain hedging arrangements and the licensing of the UBS Tech Edge Index and its service marks for use in connection with a fixed indexed annuity (the “ Products ”) offered by American Equity Investment Life Insurance Company (American Equity”) and is not a party to any transaction contemplated hereby. The rules of the UBS Tech Edge Index may be amended by the third party index administrator in consultation with UBS as index sponsor (the “ Index Sponsor ”). An amendment to the rules may result from, without limitation, a change to the construction or calculation rules for the Index or from the third party index administrator determining that a change to the rules is required or desirable in order to update them or to address an error, omission or ambiguity. No assurance can be given that any such amendment would not affect parties to this document. The end-of-day value of the UBS Tech Edge Index is published subject to the provisions in the rules of the Index. Neither the third party index administrator, the Index Sponsor nor any of their affiliates are obliged to publish any information regarding the index other than as stipulated in the rules of these indices. While volatility controls may result in less fluctuation in rates of return as compared to indices without volatility controls, they may also reduce the overall rate of return as compared to products not subject to volatility controls. The Products are not in any way sponsored, endorsed, sold or promoted by UBS and UBS does not make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the UBS Tech Edge Index (“the Index”), the figure at which the said Index stands at any particular time on any particular day or otherwise, or the advisability of or results to be obtained by using, investing in or trading the Products. The selection of the Index as a crediting option under the Product does not obligate American Equity or UBS to invest premium payments in the components of the Index or in other products linked to the Index. UBS shall not be liable for the results obtained by using, investing in or trading the Products. The Index is compiled, maintained and calculated by UBS. However, UBS shall not be liable (whether in negligence or otherwise) to any person for any error in the Index and UBS shall not be under any obligation to advise any person of any error therein. UBS has not published or approved this document and accepts no responsibility for its contents or use. Obligations to make payments under the Product are solely the obligation of American Equity and are not the responsibility of UBS. The Index is the exclusive property of and currently sponsored by the Index Sponsor. The [Product(s)] are not in any way sponsored, endorsed or promoted by UBS. UBS has no obligation to take the needs of any person into consideration in composing, determining or causing the Index to be calculated by a third party administrator. In addition, UBS makes no warranty or representation whatsoever, express or implied, as to the results to be obtained from the use of the Index and/or the level at which the Index stands at any particular time on any particular day or otherwise, and UBS shall not be liable, whether in negligence or otherwise, to any person for any errors or omissions in the Index or in the calculation of the Index or under any obligation to advise any person of any errors or omissions therein. UBS shall not be liable for the results obtained by using, investing in, or trading the Products. Tax Disclaimer: UBS does not provide any tax advice. Any tax statement herein regarding any US federal tax is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding any penalties. Any such statement herein was written to support the marketing or promotion of the transaction(s) or matter(s) to which the statement relates. Each taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor. Notwithstanding anything to the contrary herein, each party (and each of their employees, representatives, or other agents) may disclose to any and all persons, without limitation of any kind, the U.S. tax treatment and U.S. tax structure of any transaction that may described or included within the information contained herein relating to such U.S. tax treatment and U.S. tax structure. For this purpose, the tax treatment of a transaction is the purported or claimed U.S. federal income tax treatment of the transaction, and the tax structure of a transaction is any fact that may be relevant to understanding the purported or claimed U.S. federal income tax treatment of any transaction. ERISA: You understand that (i) neither UBS AG nor any of its affiliates has or exercises investment discretion with respect to any assets on behalf of any employee benefit plans or individual retirement accounts (collectively, “ Plans ”) that may be involved with the purchase, holding or redemption of a security, (ii) UBS is not undertaking to provide impartial investment advice or give advice in a fiduciary capacity on behalf of such Plans within the meaning of the U.S. Department of Labor’s final regulation defining “investment advice” for purposes of the Employee Retirement Income Security Act of 1974, as amended (“ ERISA ”) and Section 4975 of the Internal Revenue Code of 1986, as amended, (iii) UBS is not a “fiduciary” within the meaning of Section 3(21) of ERISA, and (iv) the information or communication provided herein or otherwise to the Plans or a fiduciary on behalf of any of the Plans is intended to be, and should be construed as, general information, and it does not and will not take into account your legal, regulatory, tax, business, investment, financial, accounting or other needs or priorities with respect to any Plans. This Product is not sponsored, endorsed, sold or promoted by Salt Financial Indices LLC (“SFI”) or any affiliate of SFI. Neither SFI nor any other party makes any representation or warranty, express or
EstateShield 9
18
Disclosures
implied, to the owners of this Product or any member of the public regarding the advisability of investing in funds generally or in this Product particularly or the ability of the UBS Tech Edge Index to track general stock market performance. SFI is the licensor of certain trademarks, service marks and trade names of SFI and of the UBS Tech Edge Index which is determined, composed and calculated by SFI without regard to the issuer of this Product or this Product. SFI has no obligation to take the needs of the issuer of this Product or the owners of this Product into consideration in determining, composing or calculating the UBS Tech Edge Index. SFI is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of this Product to be issued or in the determination or calculation of the equation by which this Product is redeemable for cash. Neither SFI nor any other party has any obligation or liability to owners of this Product in connection with the administration, marketing or trading of this Product. ALTHOUGH SFI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF THE INDEXES FROM SOURCES WHICH SFI CONSIDERS RELIABLE, NEITHER SFI NOR ANY OTHER PARTY GUARANTEES THE ACCURACY AND/OR THE COMPLETENESS OF THE INDEXES OR ANY DATA INCLUDED THEREIN. NEITHER SFI NOR ANY OTHER PARTY MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, LICENSEE’S CUSTOMERS AND COUNTERPARTIES, OWNERS OF THE FUNDS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEXES OR ANY DATA INCLUDED THEREIN IN CONNECTION WITH THE RIGHTS LICENSED HEREUNDER OR FOR ANY OTHER USE. NEITHER SFI NOR ANY OTHER PARTY MAKES ANY EXPRESS OR IMPLIED WARRANTIES, AND SFI HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE INDEXES OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL SFI OR ANY OTHER PARTY HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. The SG Global Sentiment Index (the “Index”) is the exclusive property of SG Americas Securities, LLC (SG Americas Securities, LLC, together with its affiliates, “Société Générale”). Société Générale has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC (“S&P”) to maintain and calculate the Index. “SG Americas Securities, LLC”, “SGAS”, “Société Générale”, “SG”, “Société Générale Indices”, “SGI”, and “SG Global Sentiment Index” (collectively, the “Société Générale Marks”) are trademarks or service marks of Société Générale. Société Générale has licensed use of the Société Générale Marks to American Equity Investment Life Insurance Company (“American Equity”) for use in a fixed indexed annuity offered by American Equity (the “Fixed Indexed Annuity”). Société Générale’s sole contractual relationship with American Equity is to license the Index and the Société Générale Marks to American Equity. None of Société Générale, S&P, or other third party licensor (collectively, the “Index Parties”) to Société Générale is acting, or has been authorized to act, as an agent of American Equity or has in any way sponsored, promoted, solicited, negotiated, endorsed, offered, sold, issued, supported, structured or priced any Fixed Indexed Annuity or provided investment advice to American Equity. No Index Party has passed on the legality or suitability of, or the accuracy or adequacy of the descriptions and disclosures relating to, the Fixed Indexed Annuity, including those disclosures with respect to the Index. The Index Parties make no representation whatsoever, whether express or implied, as to the advisability of purchasing, selling or holding any product linked to the Index, including the Fixed Indexed Annuity, or the ability of the Index to meet its stated objectives, including meeting its target volatility. The Index Parties have no obligation to, and will not, take the needs of American Equity or any annuitant into consideration in determining, composing or calculating the Index. The selection of the Index as a crediting option under a Fixed Indexed Annuity does not obligate American Equity or Société Générale to invest annuity payments in the components of the Index. THE INDEX PARTIES MAKE NO REPRESENTATION OR WARRANTY WHATSOEVER, WHETHER EXPRESS OR IMPLIED, AND HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES (INCLUDING, WITHOUT LIMITATION, THOSE OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE), WITH RESPECT TO THE INDEX OR ANY DATA INCLUDED THEREIN OR RELATING THERETO, AND IN PARTICULAR DISCLAIM ANY GUARANTEE OR WARRANTY EITHER AS TO THE QUALITY, ACCURACY, TIMELINESS AND/OR COMPLETENESS OF THE INDEX OR ANY DATA INCLUDED THEREIN, THE RESULTS OBTAINED FROM THE USE OF THE INDEX AND/OR THE CALCULATION OR COMPOSITION OF THE INDEX, OR CALCULATIONS MADE WITH RESPECT TO ANY FIXED INDEXED ANNUITY AT ANY PARTICULAR TIME ON ANY PARTICULAR DATE OR OTHERWISE. THE INDEX PARTIES SHALL NOT BE LIABLE (WHETHER IN NEGLIGENCE OR OTHERWISE) TO ANY PERSON FOR ANY ERROR OR OMISSION IN THE INDEX OR IN THE CALCULATION OF THE INDEX, AND THE INDEX PARTIES ARE UNDER NO OBLIGATION TO ADVISE ANY PERSON OF ANY ERROR THEREIN, OR FOR ANY INTERRUPTION IN THE CALCULATION OF THE INDEX. NO INDEX PARTY SHALL HAVE ANY LIABILITY TO ANY PARTY FOR ANY ACT OR FAILURE TO ACT BY THE INDEX PARTIES IN CONNECTION WITH THE DETERMINATION, ADJUSTMENT OR MAINTENANCE OF THE INDEX. WITHOUT LIMITING THE FOREGOING, IN NO EVENT SHALL AN INDEX PARTY HAVE ANY LIABILITY FOR ANY DIRECT DAMAGES, LOST PROFITS OR SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. No Index Party is a fiduciary or agent of any purchaser, seller or holder of a Fixed Indexed Annuity. None of Société Générale, S&P, or any third party licensor shall have any liability with respect to the Fixed Indexed Annuity in which an interest crediting option is based is on the Index, nor for any loss relating to the Fixed Indexed Annuity, whether arising directly or indirectly from the use of the Index, its methodology, any Société Générale Mark or otherwise. Obligations to make payments under the Fixed Indexed Annuities are solely the obligation of American Equity. In calculating the performance of the Index, Société Générale deducts a maintenance fee of 0.50% per annum on the level of the Index, and fixed transaction and replication costs, each calculated and deducted on a daily basis. The transaction and replication costs cover, among other things, rebalancing and replication costs. The total amount of transaction and replication costs is not predictable and will depend on a number of factors, including the leverage of the Index, which may be as high as 200%, the performance of the indexes underlying the Index, market conditions and the changes in the market states, among other factors. The transaction and replication costs, which are increased by the Index’s leverage, and the maintenance fee will reduce the potential positive change in the Index and increase the potential negative change in the Index. While the volatility control applied by the Index may result in less fluctuation in rates of return as compared to indices without volatility controls, it may also reduce the overall rate of return as compared to products not subject to volatility controls. The “S&P 500 ® ” is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by American Equity Investment Life Insurance Company (“AEL”). Standard & Poor’s ® and S&P ® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones ® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed to SPDJI and sublicensed for certain purposes by AEL. AEL’s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and such parties make no representations regarding the advisability of investing in such product(s) and have no liability for any errors, omissions, or interruptions of the S&P.
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American Equity Commitment to Values
Service Our contract owners are why we are here, and we do our best to provide service, second to none, every day. Integrity Our values of honesty, fairness and truthfulness have been central to our past success and will continue to be for generations to come. Excellence Our dedication to going above and beyond in every facet of our business has established us as a top-tier fixed index annuity provider. Protection Our products provide assurance for contract owners so that they can trust their principal is protected and their income is guaranteed for life.
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Through our financial strength and ongoing stability, American Equity helps fund more than half-a- million contract owners’ retirements across the country.
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600,000 Active Contract Owners American-owned and operated
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American Equity Investment Life Insurance Company ®
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01SB1167-9-CA 01.01.24
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