Goldstein Scorecard: B (dated October 4, 2026). See how it is graded.
American Equity AssetShield Review: AssetShield 5, 7, 10 and Bonus 10 Rates, Surrender Charges and Who It Fits
Written & reviewed by Hans Goldstein, EA, Independent Licensed Insurance Producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Facts verified against American Equity rate sheets and brochures on October 4, 2026 · Updated October 4, 2026
American Equity AssetShield is an accumulation fixed index annuity from American Equity Investment Life Insurance Company, sold in 5, 7 and 10-year versions plus AssetShield BONUS 10. On rates effective September 2, 2026, AssetShield 10 pays a 9.25% S&P 500 annual cap and 4.50% fixed rate with no fee, the minimum premium is $5,000, and the 10-year surrender charge starts at 12% in most states. There is no income rider; for that, American Equity sells IncomeShield.
Correction (October 4, 2026): an earlier version of this page listed S&P A-, Moody’s Baa1, Weiss, COMDEX and “Tier A renewal integrity” labels, 10 to 14 year surrender variants and an income rider. American Equity’s own ratings page shows AM Best A, S&P A and Fitch A; AssetShield is sold in 5, 7 and 10-year versions (9-year in California) with no income rider. Unsourced ratings, scores and labels have been removed. This page now reviews AssetShield from American Equity’s rate sheets effective September 2, 2026.
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CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
AssetShield current rates (effective September 2, 2026)
Each rate below applies to one strategy on its own; caps, participation rates and triggers do not combine. The “with PRR” column is the optional Performance Rate Rider, which costs 1.50% a year on 1-year strategies and 3% on 2-year strategies.
| Strategy (no fee / with PRR) | AssetShield 5 | AssetShield 7 | AssetShield 10 | BONUS 10 |
|---|---|---|---|---|
| S&P 500 1-year point-to-point cap | 8.25% / 11% | 9% / 11.50% | 9.25% / 11.75% | 6.25% / 8% |
| S&P 500 1-year participation rate | 40% / 50% | 40% / 55% | 40% / 55% | 18% / 35% |
| S&P 500 1-year performance trigger | 4.50% | 5.50% | 5.75% | 3.50% |
| S&P 500 monthly cap (annual term) | 1.80% / 2.70% | 1.95% / 2.95% | 2% / 3.20% | 1.30% / 2.50% |
| Nasdaq Premier, NYSE Premier, S&P 500 Advantage 15% VT TCA: 1-year cap | 10% | 11.75% | 12% | 6.75% |
| Same three indexes: 2-year cap | n/a | n/a | 35% | 14.50% |
| Dow Jones Industrial Average 1-year cap / trigger | 6.75% / 6% | 7.50% / 6.45% | 7.75% / 6.50% | 5.25% / 4% |
| Nasdaq-100 1-year cap / trigger | 7% / 6.25% | 7.75% / 6.70% | 8% / 6.75% | 5.25% / 4.25% |
| S&P 500 Dividend Aristocrats Daily Risk Control 5% ER, 1-year participation | 100% / 175% | 105% / 185% | 105% / 190% | 90% / 175% |
| Fixed interest strategy | 4.25% | 4.40% | 4.50% | 2% |
The 2-year strategies on AssetShield 10 and BONUS 10 credit once every two years, so a 35% cap is a two-year cap, not an annual one. All four versions also offer BlackRock Adaptive US Equity 15% and BNPP Patriot Technology participation strategies; see the rate sheets for those.
Contract basics (verified)
| Feature | What American Equity publishes |
|---|---|
| Premium | Flexible premium, added at any time without extending the surrender period. Minimum $5,000; maximum $3 million (BONUS 10: $3 million at ages 18 to 74, $1.5 million at 75 to 80) |
| Issue ages | AssetShield 5 and 7: 18 to 85. AssetShield 10 and BONUS 10: 18 to 80 |
| Surrender charge, AssetShield 5 | 9.2%, 9%, 8%, 7%, 6% in years 1 to 5; 0% from year 6. California: 8%, 8%, 7%, 6%, 5% |
| Surrender charge, AssetShield 7 | 9.2%, 9%, 8%, 7%, 6%, 4%, 2% in years 1 to 7; 0% from year 8. California: 8%, 8%, 7%, 6%, 5%, 4%, 3% |
| Surrender charge, AssetShield 10 (most states) | 12%, 12%, 11%, 10%, 9%, 8%, 7%, 5%, 4%, 2% in years 1 to 10; 0% from year 11 |
| Surrender charge, AssetShield 10 (AK, CT, DE, FL, ID, IL, IN, KY, MA, MD, MN, MO, MS, MT, NC, NJ, NM, NV, OH, OK, OR, PA, SC, TX, UT, VA, VT, WA) | 9.2%, 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%; 0% from year 11 |
| Surrender charge, BONUS 10 | 9.1%, 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%; 0% from year 11 |
| BONUS 10 premium bonus | 15% on all first-year premiums, or 21% with the optional Enhanced Bonus & Liquidity Rider (EBLR, 0.95% a year for the 10-year rider charge period) |
| BONUS 10 bonus vesting | 0% in year 1, then 10% a year (10% in year 2 to 90% in year 10); 100% from year 11. 100% vested at death |
| Free withdrawals | Up to 10% of contract value a year starting in year 2 (EBLR: 2% in year 1, 12% from year 2). Interest-only systematic withdrawals from the fixed value after 30 days |
| Market value adjustment (MVA) | Yes. Applies to withdrawals above the free amount and to surrenders during the surrender charge period |
| Enhanced Benefit Rider | Included at no cost for owners 75 and under at issue (not available in CA on AssetShield 5 and 7). From year 2, a one-time free withdrawal of up to 100% of contract value after 90 consecutive days in a care facility or a terminal illness diagnosis |
| Death benefit | Full contract value with no surrender charges |
| Minimum values | Surrender value never less than 87.5% of premiums (91% in CA on AssetShield 5 and 7), less withdrawals, accumulated at the MGSV rate, currently 2.40%, set at issue for the life of the contract. Fixed value minimum interest rate 0.50% |
| Index minimums | Minimum caps, participation rates and triggers are not stated in American Equity’s public rate sheets or brochures; they are in the contract and disclosure |
| Income rider | None. American Equity’s income FIAs are the IncomeShield line |
| California versions | AssetShield 9, AssetShield BONUS 9 and AssetShield BONUS 5 (listed in American Equity’s materials library) |
Hypothetical: what the BONUS 10 bonus is worth if you leave early
Hypothetical, for illustration only, not an American Equity illustration. $100,000 in AssetShield BONUS 10 gets a $15,000 bonus. If the contract is surrendered in year 5, the bonus is 40% vested, so $9,000 of it is forfeited, and a 6% surrender charge plus any MVA apply to the amount above the free withdrawal. The disclosure sets the exact order of those steps. Kept past year 10, the full bonus is yours.
Goldstein Scorecard (dated October 4, 2026)
| Dimension | Grade | Basis (sourced fact) |
|---|---|---|
| Financial strength | A- | AM Best A (Excellent, as of 11/2024), S&P A (as of 05/2024) and Fitch A, outlook stable (as of 07/2025), per American Equity’s financial strength page, checked October 4, 2026. |
| Rate or cap competitiveness | B | AssetShield 10: 9.25% S&P 500 cap and 4.50% fixed with no fee (September 2, 2026). The fixed rates (4.25% to 4.50%) sit below the 5.50% to 6.05% that 5-year MYGAs paid on October 14, 2026. |
| Guaranteed floor | C | Published floors are the 0.50% fixed value minimum and the 87.5% at 2.40% MGSV. Index cap and participation minimums are not public. |
| Liquidity | C | AssetShield 5 ends charges after year 5; AssetShield 10 starts at 12% in most states. MVA on all versions; 10% free from year 2, none in year 1 beyond interest-only withdrawals. |
| Costs | A- | No fee unless you elect the Performance Rate Rider (1.50% or 3%) or, on BONUS 10, the EBLR (0.95% a year). |
| Transparency | B+ | Dated rate sheets with surrender schedules are public in American Equity’s materials library; index minimums are not. |
| Guaranteed minimum cap | Not publicly disclosed | American Equity publishes no index minimums. A secondary source (AnnuityRatesHQ, CANNEX feed, checked October 4, 2026) lists 0.50% on the cap strategies and 10% participation; that is not an American Equity statement, so get the floor in writing. |
| Overall | B | A-rated carrier, no-fee base versions and a 5-year option; fixed rates below current MYGAs and index minimums you must get in writing. |
How these contract minimums compare across products: guaranteed minimum caps across FIAs (October 2026).
Pros and cons
| Pros | Cons |
|---|---|
| Three terms: 5, 7 or 10 years, so you can match the lock to your plan. | AssetShield 10 surrender charge starts at 12% in most states. |
| No rider fee on the base versions; the Performance Rate Rider is optional. | Fixed rates of 4.25% to 4.50% are below current 5-year MYGA rates. |
| Flexible premium from $5,000, added without restarting the surrender period. | MVA applies to excess withdrawals and surrenders during the surrender period. |
| Enhanced Benefit Rider at no cost for owners 75 and under (care facility or terminal illness). | No free withdrawal in year 1 except interest-only from the fixed value. |
| BONUS 10 adds a 15% bonus (21% with EBLR). | BONUS 10 has lower rates (6.25% S&P cap, 2% fixed) and the bonus vests over 10 years. |
Who it's for, and when to look elsewhere
Fits: a saver who wants index-linked growth with no income rider and no fee, can leave the money for the full 5, 7 or 10 years, and wants to add premium over time.
Look elsewhere if:
- You want lifetime income from a rider. AssetShield has none; American Equity’s income line is IncomeShield. Compare options with the income rider vs annuitization calculator.
- You may need more than 10% a year, or any money in year 1.
- You mainly want a known rate. A MYGA locks a declared rate for the term, backed by the claims-paying ability of the issuing insurer. For comparison, A-rated-or-better insurers were paying about 5.50% to 6.05% on 5-year MYGAs and the best nationally available 5-year CDs about 4.70% to 5.00% APY (MYGAs: public carrier rate sheets, October 14, 2026; CDs: Bankrate and Popular Direct, October 18, 2026). Current rates: MYGA rates. American Equity’s own MYGA is reviewed at GuaranteeShield.
Run the numbers: annuity surrender charge calculator and annuity calculator. Related: how annuity crediting works, is a premium bonus good or bad, FIA cap rates 2026, annuity second opinion.
Is there an American Equity RateShield or Foundation annuity?
No product called RateShield appears in American Equity’s current materials library or on its annuities page (checked October 4, 2026), and American Equity’s income FIAs are IncomeShield 7, 10 and BONUS 10 (IncomeShield 9 in California). Foundation Gold was an earlier American Equity bonus FIA, named in the company’s November 6, 2017 earnings release; it is not in the current library. Today’s lineup is AssetShield, IncomeShield and EstateShield fixed index annuities and GuaranteeShield fixed rate annuities, so if you were quoted a “RateShield” or a “Foundation 5/7/10”, ask for the exact product name and form number on the application.
Questions to ask your agent
- What are the minimum guaranteed caps, participation rates and triggers in my contract for each strategy I pick? Please give them to me in writing from the disclosure.
- Which version and state schedule am I getting? Show the full surrender schedule by year, how the MVA works, and my free withdrawal amount in year 1 and after.
- Am I being shown rates with or without the Performance Rate Rider? Show both side by side, with the fee.
- For BONUS 10: what happens to the bonus if I surrender in each year, and is the EBLR worth 0.95% a year for me?
- How are you paid on this product? Commission comes from the insurer and is built into pricing, not deducted from premium; ask the percentage and whether the 10-year version pays you more than the 5-year. See how annuity commissions work.
From my desk
When I review an AssetShield quote, the first thing I check is which of the four versions is on the application and which state schedule applies. The same product name covers a 5-year contract that is free of charges after year 5 and a 10-year contract that starts at 12% in most states, and BONUS 10 runs on its own, lower rate sheet.
The number buyers most often misread here is the 35% cap on the 2-year strategies. It is a cap on a two-year return, credited once every two years, not 35% a year. The second is the “with PRR” column: those higher rates cost 1.50% a year (3% per 2-year term), charged whether or not the index pays.
Against a MYGA, I compare the AssetShield fixed rate for the same term with the MYGA rate, then ask how much the client would need the index strategies to beat that gap to make the extra moving parts worth it. On September 2, 2026 rates, AssetShield 5 paid 4.25% fixed while 5-year MYGAs were paying about 5.50% to 6.05%.
Frequently asked questions
What is the American Equity AssetShield cap rate right now?
On rates effective September 2, 2026, the S&P 500 1-year point-to-point cap is 8.25% on AssetShield 5, 9% on AssetShield 7, 9.25% on AssetShield 10 and 6.25% on AssetShield BONUS 10, with no fee. Higher caps are available with the Performance Rate Rider for 1.50% a year. Rates are set at issue and can change at renewal.
What is the surrender charge on AssetShield 10?
In most states it is 12%, 12%, 11%, 10%, 9%, 8%, 7%, 5%, 4% and 2% in years 1 to 10, and 0% from year 11. In 28 listed states, including FL, IL, NJ, PA and TX, it is 9.2% falling to 1%. An MVA can also apply.
What is the minimum premium for American Equity AssetShield?
$5,000, with a $3 million maximum (BONUS 10: $1.5 million at ages 75 to 80). It is a flexible premium contract, so you can add money later without restarting the surrender period.
Does AssetShield have an income rider?
No. AssetShield is an accumulation product. American Equity sells its income-rider FIAs under the IncomeShield name.
Is there an American Equity RateShield or Foundation annuity?
No RateShield product appears in American Equity’s current materials library (checked October 4, 2026). Foundation Gold was an earlier American Equity bonus FIA named in a 2017 company release and is not in the current library. The current fixed index lineup is AssetShield, IncomeShield and EstateShield.
How is AssetShield taxed?
Growth is tax-deferred. Withdrawals of gain are taxed as ordinary income, and gain taken before age 59½ may carry a 10% federal penalty.
Sources (checked October 4, 2026)
- American Equity, AssetShield 10 rate sheet, form 01RS1165-10, rates effective September 2, 2026.
- American Equity, AssetShield 7 rate sheet, form 01RS1165-7, rates effective September 2, 2026.
- American Equity, AssetShield 5 rate sheet, form 01RS1165-5, rates effective September 2, 2026.
- American Equity, AssetShield BONUS 10 rate sheet, form 01RS1165-10B, rates effective September 2, 2026.
- American Equity, AssetShield 10 sales brochure, form 01SB1165-10-EN (05/06/2026).
- American Equity, AssetShield BONUS 10 sales brochure, form 01SB1165-10B (09/02/2026).
- American Equity, Financial strength ratings page (AM Best as of 11/2024, S&P as of 05/2024, Fitch as of 07/2025).
- American Equity, Marketing materials library and Our annuities (current product list).
- American Equity Investment Life Holding Co., press release dated November 6, 2017 (SEC Form 8-K, Exhibit 99.1), mention of Foundation Gold.
- MYGA and CD benchmark: public carrier rate sheets (MYGAs, October 14, 2026) and DepositAccounts (CDs, September 24, 2026).
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.