What Is the American Equity IncomeShield 10?
The American Equity IncomeShield 10 is a fixed index annuity designed around one core promise: guaranteed income you can’t outlive. It comes with a built-in Lifetime Income Benefit Rider (LIBR) at no extra cost to activate, the 1.20% annual fee is part of the product from day one. Based on a March 2026 illustration and the official product brochure, this review breaks down exactly how the income rider works, what the historical performance looks like across best and worst periods, and what fine-print riders you need to understand before signing.
Quick Facts: American Equity IncomeShield 10
The IncomeShield 10 is issued by American Equity Investment Life Insurance Company, rated A by AM Best (Excellent). American Equity is one of the largest independent annuity carriers in the U.S., known specifically for income-focused FIA products.
| Issuer | American Equity Investment Life Insurance Company |
|---|---|
| AM Best Rating | A (Excellent) |
| Product Type | Fixed Index Annuity with Built-In LIBR |
| Premium Bonus | None |
| Surrender Period | 10 years |
| Free Withdrawal | 10% of contract value annually (starting year 2) |
| Income Rider | Included, Lifetime Income Benefit Rider (LIBR) |
| IAV Rollup Rate | 10% simple interest for up to 10 years |
| Rider Fee | 1.20% annually on the Income Account Value (IAV) |
| Issue Ages | 40 to 80 |
| Minimum Premium | $5,000 |
| Maximum Premium | $1,500,000 (age 40 to 69); varies for older buyers |
| State Availability | Most states (not available in CA, GU, NY, PR, VI) |
How Much Income Does the American Equity IncomeShield 10 Pay?
| Income starts at (single life) | Income account value | Payout factor | Guaranteed income a year |
|---|---|---|---|
| 60 (right away) | $100,000 | 6.24% | $6,240 |
| 62 | $120,000 | 6.25% | $7,500 |
| 65 | $150,000 | 7.05% | $10,575 |
| 70 (roll-up ends) | $200,000 | 7.90% | $15,800 |
- How the value grows: 10% simple a year for up to 10 years, so $100,000 becomes $200,000.
- Wellbeing Benefit: after year 2, income doubles (1.5x joint) for up to 5 years if you can’t do 2 of 6 daily activities.
- The fee grows too: 1.20% is charged on the income account value, so it’s $1,800 a year at $150,000.
- Run your own numbers: try our income rider calculator or the live quote below.
See what the American Equity IncomeShield 10 would pay you for life
Lifetime income depends on your age, your premium and when you start. Run the numbers in our income rider calculator, or request a quote with current carrier figures for your age and state, in writing.
Hypothetical Historical Rate of Return
The March 2026 illustration put $25,000 in each of four strategies for a 60-year-old man in Arizona, with income starting at 65.
| Strategy | Current rate | Worst / most recent 10 years |
|---|---|---|
| S&P 500 monthly sum | 2.5% monthly cap | 3.58% / 7.07% |
| S&P 500 participation | 42% | 4.28% / 6.85% |
| S&P 500 Dividend Aristocrats DRC 5% ER | 160% | 4.62% / 4.62% |
| S&P 500 annual cap | 5.75% cap | 3.77% / 4.57% |
- Illustrated result: $10,575 a year from 65, $327,825 of total income, and a 5.78% effective rate.
- Backtest caveat: credits replay past years at today’s rates and exclude the rider fee.
- Weak Aristocrats index: its most recent decade was also its worst, at 4.62% a year.
- Benchmark it: compare these with current fixed index annuity rates and today’s At today's top 10-year rate of 6.30% (compound), $100,000 grows to about $184,218 over 10 years, a gain of $84,218.
Get your American Equity IncomeShield 10 illustration for your age and state
Send us your premium amount, your state, and when you need the money. We will come back with current numbers on this contract and comparable ones from the 90+ top annuity companies on our platform, in writing.
American Equity IncomeShield 10 Strengths and Red Flags
What it does well
- Guaranteed roll-up: 10% simple for 10 years, regardless of the index.
- Wellbeing Benefit: doubled income for care needs, with no nursing-home stay required.
- Low minimum: $5,000 to start, with issue ages 40 to 80.
Red flags
- Fee on a growing base: 1.20% of the income account value, even in 0% years.
- Base isn’t cash: the income account value can’t be withdrawn as a lump sum.
- 10-year lock-up: a 9.2% year-one charge.
- 87.5% floor: an early exit can return less than you put in.
Final verdict: the American Equity IncomeShield 10 is built for guaranteed lifetime income with a care-need boost. It earns our 4.0 rating for buyers who will defer income several years. For safe growth, the American Equity AssetShield 7 fits better than the American Equity IncomeShield 10.
Compare live rates on 137 fixed index annuities or visit our annuity review database.
This review is for educational purposes only and is not a recommendation or an offer to sell any annuity. Product features, index options, and rates can and do vary by state, and this product is not available for sale in every state. Always request a carrier illustration and work with a licensed annuity agent before you buy.
Frequently Asked Questions
How does the American Equity IncomeShield 10 income rider work?
The IncomeShield 10 includes the Lifetime Income Benefit Rider (LIBR), which tracks a separate Income Account Value (IAV). The IAV grows at 10% simple interest per year for up to 10 years, it's not affected by market performance. When you're ready to take income, American Equity multiplies your IAV by a payout factor based on your age and deferral period. The resulting dollar amount is paid to you for life, even after the contract value reaches zero.
What is the American Equity IncomeShield 10 rider fee?
The rider fee is 1.20% annually, calculated on the Income Account Value (IAV) and deducted from the contract value. Because the IAV grows at 10% simple interest per year, the dollar amount of the fee grows even if the contract value hasn't earned index credits. For example, with a $150,000 IAV, the annual fee is $1,800, deducted from the contract value regardless of market conditions that year.
What is the Wellbeing Benefit on the IncomeShield 10?
The Wellbeing Benefit is included with the LIBR at no extra cost. If you're unable to perform 2 of 6 Activities of Daily Living (ADLs) after the 2-year waiting period, you can activate the Wellbeing Benefit. This doubles your income for up to 5 years (single payout) or increases it by 50% (joint payout). It can only be activated once and requires annual physician certification. You do not need to be confined to a nursing home to qualify.
Is the American Equity IncomeShield 10 a good annuity for retirement income?
For buyers whose primary goal is guaranteed lifetime income, particularly those concerned about outliving their savings, the IncomeShield 10 is a solid choice. The 10% IAV rollup guarantees income growth regardless of market conditions, the payout factors are competitive, and the Wellbeing Benefit adds genuine long-term care-adjacent protection. However, the 1.20% rider fee is a real drag on contract value, and the product is not designed for accumulation or legacy planning.
What happens to my money if I die with the American Equity IncomeShield 10?
The death benefit is equal to the contract value (never less than the minimum guaranteed surrender value). Beneficiaries can receive it as a lump sum or choose another payment option. Importantly, the LIBR's IAV balance is NOT the death benefit, the death benefit is the contract value, which may be lower than the IAV, especially in later years after income withdrawals have been taken.
