American Equity GuaranteeShield MYGA: Honest Review (2026)
Written & reviewed by Hans Goldstein, EA, Independent Licensed Insurance Producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Independently reviewed & last updated 2026-06-08
Last updated: June 8, 2026
American Equity GuaranteeShield is a solid A-rated MYGA from a carrier with a long record in fixed indexed annuities and MYGAs. Brookfield Reinsurance bought American Equity Investment Life Insurance Company in 2024, so there is now a very large parent behind it (~$900B+ AUM).
Rates expire like milk.
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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.
Goldstein Complexity Index
Every annuity I review gets a complexity score from 0 to 100. Higher means harder to understand. Complexity is where buyers get hurt: riders they didn't know they were paying for, surrender charges that surprise them, and income "benefit bases" they took for cash. SPIAs and MYGAs score low. Products that stack a bonus, an income rider, an MVA and several crediting options score high.
This product's score: 8/100, Grade A+ (Transparent)
Few moving parts. After one read of the contract, you could explain this product to a friend.
Score breakdown
| Dimension | Score (1-10) | What this measures |
|---|---|---|
| Riders | 1/10 | How many riders, optional or built in (income, death benefit, LTC). Each one adds cost and one more thing to understand. |
| Crediting strategies | 1/10 | How many index options (cap, spread, participation rate, step rate, volatility-controlled indices). More choices are harder to follow. |
| Surrender complexity | 3/10 | Length of the surrender period, plus any MVA and bonus recapture. The longer and more layered it is, the harder it is to know what leaving early costs. |
| Benefit-base separation | 1/10 | Whether there is a separate income base ("PIV") that is not cash but looks like it. This causes more buyer confusion than anything else. |
| Bonus structure | 1/10 | A premium bonus with a recapture schedule. The bonus is real, but you can lose part of it if you leave early. |
How to read this
- A+/A (0-40): Easy to understand. A pure accumulation FIA, a MYGA or a SPIA. Little room for mis-selling.
- B (41-60): Read the contract carefully and get a second opinion before signing. Income riders cause most of the confusion.
- C (61-80): Many owners don't fully understand what they bought. Common mis-sells: a bonus presented as cash, a benefit base presented as account value, surrender charges glossed over.
- D (81-100): Get an independent second opinion before signing. The product may still fit you, but the odds you later say "I didn't know it worked that way" are high.
Why it matters: nobody gets sued for selling a complicated product, but buyers regret them all the time. An annuity that wins your money in year one and confuses you for the next 14 is worse than a simpler one you understood from the start. Simple products are easier to check.
Quick verdict
Goldstein Complexity Index: 8/100, A+ Transparent. A solid A-rated MYGA at competitive rates, now backed by Brookfield after the 2024 acquisition. American Equity is widely regarded as having one of the most consistent in-force renewal-rate track records in the industry. That matters more on its FIAs than on a MYGA, but it tells you how the company treats existing clients.
Goldstein Scorecard
| Dimension | Grade | One-line take |
|---|---|---|
| Carrier financial strength | A | A AM Best, A− S&P; Brookfield Reinsurance parent. |
| Rate competitiveness | A− | Competitive A-tier MYGA rates; not always #1. |
| Term flexibility | A | 3, 5, 7, 10-year terms. |
| Customer service | B+ | Solid mid-tier service. |
| Renewal-rate track record | A+ | Among the most consistent in the industry (long FIA record). |
| Goldstein Complexity Index | A+ (8/100) | Simple. |
| Overall | A | Solid A-rated MYGA with strong institutional backing. |
Best for: MYGA buyers aged 50 to 75 who want an A-rated carrier with a large parent company behind it.
Look elsewhere if: you want the highest rate available (Wichita National) or A++ safety (MassMutual).
Strengths
- A AM Best and A− S&P ratings
- Brookfield Reinsurance parent (~$900B+ AUM)
- A consistent in-force renewal record, by most industry accounts
- Several MYGA term options
- State guaranty fund coverage typically protects retail buyers
Weaknesses
- Rates sit mid-pack among A-rated carriers and are rarely the top
- The Brookfield acquisition is recent (2024), so operational changes are possible
- Surrender charges on early withdrawal
Common complaints, and what's true
"Brookfield acquisition concerns me"
Truth: Brookfield Reinsurance is one of the largest reinsurers in the world (~$900B+ parent AUM). American Equity still runs under its own brand, now with a much bigger owner behind it. My take: a net positive for the credit profile.
"Rate was middle of the pack"
Truth: American Equity puts stability and consistent renewals ahead of chasing the top rate. My take: a tradeoff many careful buyers are glad to make.
What the brochure doesn't tell you
- The Brookfield Reinsurance acquisition closed in 2024, so the ownership change is recent.
- American Equity's FIA renewal-rate record is one of the strongest in the industry. That matters most to FIA buyers, but MYGA buyers benefit from the same discipline.
- State guaranty fund coverage is the standard $250K to $300K.
Who fits
- MYGA buyers aged 50 to 75 who want an A-rated carrier
- You value a stable company with Brookfield behind it
- You won't need the money before the term ends
Look elsewhere
- Highest rate: Wichita National Security 5
- A++ rating: MassMutual MYGA
- Best A-rated rate: F&G Guarantee-Platinum
- Top A− rates: Aspida WealthLock
How a MYGA works, in plain terms
A MYGA (Multi-Year Guaranteed Annuity) works like a CD from an insurance company. You give the carrier money for a fixed term (3, 5, 7, or 10 years). The carrier guarantees a specific interest rate for that entire term. At maturity, you get your money plus accumulated interest back, or you renew or convert to another product.
The math: put $100,000 in a 5-year MYGA at 5.65% and you have about $131,500 at maturity in year 5, with no tax owed until you withdraw. The same $100K in a 5-year CD at 4.5% ends at $124,618 after paying tax every year.
Why a MYGA can beat a CD: the rate is typically 1 to 2 percentage points higher, you owe tax only when you withdraw, and longer terms are available (5 to 10 years vs. a CD max of 5).
The trade-off:
Surrender charges if you withdraw before maturity (5 to 10% typical)
Free withdrawal of 10% per year (usually) for emergencies
Locked-in rate for the term: if rates rise after you buy, you're stuck at the lower rate
IRS 10% penalty on gain portion if withdrawn before age 59½
The only "fee" is built into the contract. There's no separate annual fee.
Quick MYGA FAQ
Q: Is a MYGA safer than a CD?
A: Both are safe at the retail level. CDs are FDIC-insured (federal); MYGAs are state guaranty fund covered (state). Coverage limits are similar (~$250K).
Q: What happens at maturity?
A: You typically have 30 days to elect: renew at the carrier's then-current rate, withdraw cash, transfer (§1035) to a different annuity, or annuitize for lifetime income. Don't miss the window. Many carriers auto-renew if you don't elect.
Q: Can I §1035 exchange to a different MYGA at maturity?
A: Yes. It's a tax-free direct transfer to a new annuity, including a different carrier offering better rates.
Q: What about MVA (Market Value Adjustment)?
A: Some MYGAs have one. If you surrender early after rates have risen, the MVA reduces your surrender value further. If rates have fallen, it can increase it.
Q: Should I ladder MYGAs?
A: For larger purchases, yes. Splitting across 3-year, 5-year, 7-year locks in rates at multiple maturity dates and gives flexibility to capture future rate moves.
Q: How is MYGA interest taxed?
A: Inside the contract: tax-deferred. At withdrawal (non-qualified): only the gain is taxable as ordinary income. Inside an IRA: standard IRA rules apply.
Q: Can I lose money on a MYGA?
A: Not from a market drop, since there is no market exposure. You can lose money to early surrender charges and an MVA. Hold to maturity and the return is guaranteed.
Q: Is the rate locked for the full term?
A: Yes. Some MYGAs have a "1-year rate" then "renewal rate" structure. Be sure you understand whether the full term is at one rate or steps down.
Sources
- public carrier rate sheets (ARW) MYGA rate data (June 2026)
- AM Best American Equity Investment Life Insurance Company rating report
- Brookfield Reinsurance American Equity acquisition disclosure (2024)
Get a second opinion before you sign
Talk to Hans Goldstein, a licensed independent insurance producer.
A MYGA locks your rate for the full term, so check two things before you commit: whether this carrier's rate is competitive with the whole market, and whether the rating tradeoff is worth it. I'll review the rate, surrender schedule and carrier strength for you before you sign.
Send your details. Within one business day you get a written review of your quote, a side-by-side with two alternatives, and a free 15-minute call if you want one.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
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.
Quick FAQ
Q: Is this annuity right for me?
A: It depends on when you need the money. A MYGA fits money you can leave alone for the full guarantee term, usually 3 to 10 years, when you want a fixed rate with no market exposure. It is the wrong place for an emergency fund or for money you may need before the term ends.
Q: How does an annuity actually pay out?
A: Three ways: (1) Surrender: withdraw cash, with a surrender charge if you leave before the term ends. (2) Annuitization: convert the value to a lifetime or fixed-period income stream. (3) 1035 exchange: move the money to another annuity at the end of the term without triggering tax.
Q: What happens if the carrier goes out of business?
A: State guaranty funds protect annuity owners, typically up to $250,000 to $300,000 per owner per carrier (varies by state). Check your state's guaranty association limit. The carrier's AM Best rating signals failure probability; A-rated carriers have very low historical default rates.
Q: Can I lose money in this annuity?
A: Not from the market: the rate is fixed for the term. You can lose money by surrendering early, through the surrender charge and a market value adjustment if the contract has one. Hold to the end of the term and neither applies.
Q: How much commission does the agent make?
A: Typically 4% to 8% of premium for fixed indexed annuities, paid by the carrier (not from your money). Higher commission products often have longer surrender periods or smaller caps. The product cost to you is the same whether commission is high or low, but commission size is a useful proxy for product complexity.
Q: Should I roll over my 401(k) into an annuity?
A: Sometimes yes, often no. Yes if: you want guaranteed income, you're risk-averse, you have other liquid assets for emergencies, and you're 55+. No if: you're under 50, you need liquidity, you have plenty of pension/SS income, or you'd be putting all your retirement assets into one product. Get an independent second opinion before rolling over six figures.
Q: Why are caps so different across products?
A: Trade-offs. A higher cap usually comes with a smaller bonus, a longer surrender period, a lower-rated carrier or a different index strategy. A 10%+ cap typically means a B-rated carrier and a 14-year surrender. A 6% cap typically means an A+ carrier and a shorter surrender.
Q: How are annuity earnings taxed?
A: Inside the contract, growth is tax-deferred (no tax until you withdraw). Withdrawals are taxed as ordinary income (not capital gains). For non-qualified annuities, only the gain portion is taxable. For qualified (IRA) annuities, the entire withdrawal is taxable. There's a 10% IRS penalty on withdrawals before age 59½.