Is the American Equity AssetShield 7 a Good Annuity?
Yes, if your goal is safe growth and not income. The AssetShield 7 shields your principal from market loss. It gives you 7 years to grow your money through index-linked strategies, with a guaranteed 3.8% fixed account as a floor.
It has no lifetime income rider. So it is built for accumulation, not a monthly paycheck. If you want a guaranteed income stream for life, this is the wrong product.
The AssetShield 7 is one option among many fixed index annuities. Compare it carefully before you buy.
American Equity AssetShield 7 at a Glance
American Equity Investment Life Insurance Company has been in business since 1995. It carries strong financial strength ratings. Here are the key facts on the AssetShield 7.
- Carrier: American Equity Investment Life Insurance Company (founded 1995)
- Financial strength: AM Best A, Fitch A, S&P A, Comdex 78 (as of May 2026)
- Product type: Fixed index annuity. Purpose: accumulation
- Launch date: October 9, 2018
- Surrender period: 7 years
- Surrender charges: 9.2%, 9%, 8%, 7%, 6%, 4%, 2%, then 0%
- Market Value Adjustment: Yes
- Free withdrawals: Interest only in year 1, then up to 10% of contract value each year
- Premium: $5,000 minimum, $3,000,000 maximum
- Issue ages: 18 to 85
- Guaranteed floor: 87.5% of premium, growing at 2.4%, less withdrawals
- Return of premium: No
How Much Does the AssetShield 7 Pay?
Here is the honest answer. The carrier illustration shows one back-tested 10-year annualized return for each strategy. It does not show a best, worst, and most-recent period. So there is no range to report, just a single hypothetical number per option, and every one of them is back-tested.
These are the headline strategies and their hypothetical 10-year annualized returns.
| Crediting Strategy | Cap / Par Rate | Hypothetical 10-Yr Annual Return* |
|---|---|---|
| Nasdaq Premier, participation, with 1.5% rider fee | 75% par | 12.98% |
| S&P 500 Advantage 15% VT TCA ER, participation, with fee | 75% par | 11.41% |
| BlackRock Adaptive US Equity 15%, participation, with fee | 75% par | 11.28% |
| Nasdaq Premier, participation, no fee | 60% par | 10.48% |
| S&P 500, cap, with fee | 11.25% cap | 8.73% |
| S&P 500, cap, no fee | 8.75% cap | 6.94% |
| S&P 500, performance trigger, no fee | 4.75% trigger | 3.78% |
| Fixed account (current declared rate) | n/a | 3.80% |
*Source: AssetShield 7 carrier illustration. Indexed account returns are back-tested. The fixed account shows the current declared rate. Rates are set at issue and can change. The minimum fixed rate is 0.5%.
What stands out, and what to be skeptical of:
- The numbers are back-tested, and the product is young. The AssetShield 7 launched in October 2018, under 8 years ago. Several of its indexes are newer than that. Back-tested results are not the same as live performance.
- The top returns lean on proprietary indexes. The highest figures use engineered, volatility-controlled indexes with short real-world track records. The U.S. Securities and Exchange Commission warns investors to understand how indexed annuity returns are calculated before buying (read the SEC’s annuity primer).
- The best numbers require the rider fee. Nasdaq Premier shows 12.98% with the 1.5% fee, but 10.48% without it. You pay for the higher participation rate.
- The good news: none of these hypotheticals exceed 15%, so the illustration is not inflated with unrealistic figures.
Want to compare these returns to today’s guaranteed fixed annuity rates? → View Current Fixed Annuity Rates
What Are the AssetShield 7 Index Options?
You split your premium across a fixed account and one or more index strategies. The fixed account currently pays 3.8%. Each index credits interest one of three ways.
- Cap rate: You earn index gains up to a set ceiling, such as an 8.75% cap on the S&P 500.
- Participation rate: You earn a set percentage of the index gain, such as 60% of the Nasdaq Premier gain.
- Performance trigger: You earn a set rate in any year the index is flat or up.
The menu is wide. It includes the S&P 500, Nasdaq-100, and Dow Jones Industrial Average. It also includes proprietary indexes: Nasdaq Premier, NYSE Premier, BlackRock Adaptive US Equity 15%, BNPP Patriot Technology, S&P 500 Advantage 15% VT TCA ER, and S&P 500 Dividend Aristocrats DRC 5% ER.
The upside: plenty of ways to diversify, plus a guaranteed fixed floor of 3.8%.
The catch: most of the menu is engineered, low-volatility indexes. They smooth the ride but cap your upside. Caps and participation rates are set at issue and reset each year, so they can fall. Some plain-index options are modest. The S&P 500 performance trigger back-tests at just 3.78%, and the S&P 500 Dividend Aristocrats par strategy at 2.94%.
You can buy higher caps and participation rates with the optional Performance Rate Rider. It charges 1.5% per term on most strategies, deducted whether the index is up or down.
Does the AssetShield 7 Have an Income Rider?
No. The AssetShield 7 has no lifetime income rider. Its stated purpose is accumulation. If you need a guaranteed paycheck for life, choose an annuity built for income instead. Our American Equity IncomeShield 10 review covers an income-focused option from the same carrier.
The AssetShield 7 does include other useful benefits.
- Enhanced Benefit Rider (free under age 75): After year 1, you can withdraw up to 100% of the contract value if you are confined to a qualified nursing facility for 90 or more days, or are diagnosed with a terminal illness. Not available in California.
- Death benefit: the greater of accumulation value or surrender value, paid to your beneficiary with no surrender charges.
- RMD friendly: required minimum distributions are penalty free.
Want to see what guaranteed income could look like on an income-focused annuity? → Try the Income Rider Calculator
How Do the Surrender Charges Work?
The AssetShield 7 locks your money up for 7 years. Take out more than the 10% free amount during that window, and a surrender charge applies. A Market Value Adjustment can raise or lower that amount too.
Here is a real-world example. Robert, age 62, puts $100,000 into the AssetShield 7. In year 2 he needs $30,000 for a roof repair. His 10% free withdrawal covers $10,000. The other $20,000 is hit with the year-2 surrender charge of 9%, or $1,800, plus any MVA. That is why this annuity only makes sense with money you will not touch for several years.
To learn more about how these charges are regulated, the Financial Industry Regulatory Authority explains surrender periods and annuity fees in plain language.
AssetShield 7 Pros and Cons
| Pros | Cons |
|---|---|
| Principal protected from market loss | 7-year surrender with a steep 9.2% charge in year 1 |
| Strong carrier (A from AM Best, Fitch, and S&P) | MVA can cut withdrawals above the 10% free amount |
| 10% free withdrawals each year after year 1 | No lifetime income rider |
| Enhanced Benefit Rider free under age 75 | Top returns are back-tested on young, proprietary indexes |
| Full contract value to heirs, no surrender charge | Best caps and par rates require a recurring rider fee |
| 3.8% fixed account and an 87.5% guaranteed floor | Caps and par rates reset yearly and can drop |
American Equity AssetShield 7 Review: Final Thoughts
The AssetShield 7 is a solid choice for safe accumulation. It fits a saver in their late fifties or sixties who wants market-free growth over 7 years and does not need the money soon.
It is not the right annuity if you need income for life, because there is no income rider. It is also not for you if you need cash in the first five years, because the early surrender charges are high.
Treat the back-tested return numbers as a sales tool, not a promise. The product is young and leans on proprietary indexes. The guaranteed 3.8% fixed account is the one number you can count on today.
Best for: safe accumulation, with a strong legacy benefit for heirs.
Compare it before you buy. For other accumulation options, see our MassMutual Ascend Legend 7 review and our Allianz Accumulation Advantage+ review.
Sources & Citations
- American Equity AssetShield 7 product brochure (form 01SB1165-7-EN)
- American Equity AssetShield 7 carrier illustration (Indexed Annuity Profile)
- AM Best financial strength ratings
- U.S. SEC, Investor.gov: Annuities
- FINRA: Annuities
