American Equity GuaranteeShield Annuity – Secure Growth With Lifetime Protection
Lock in Predictable Returns With Principal Protection
At Diversified Insurance Brokers, we help individuals build retirement income with annuities that prioritize safety, growth, and access. The GuaranteeShield Fixed Annuity, issued by American Equity Investment Life Insurance Company , delivers a dependable way to grow your money without market risk. It’s designed for conservative savers who want fixed returns, guaranteed income options, and peace of mind that their principal is protected throughout retirement.
If you’re comparing options for the “safe” portion of your portfolio, this kind of multi-year guaranteed annuity can be a powerful alternative to CDs and savings accounts. For context, it often fits alongside other strategies such as a deferred annuity or a fixed annuity that earns interest over time .
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Guaranteed Interest Rates That Never Change During the Term
The GuaranteeShield Fixed Annuity offers multi-year guaranteed interest rates that provide stability regardless of stock market performance. You select a guarantee period that fits your time horizon, and your rate is locked in for that term. There are no surprises—your growth is clearly defined from day one.
This structure makes it especially attractive for savers who want to know exactly how much they’ll have at the end of the term, and for retirees who are coordinating predictable maturities with future income needs. It often plays a role alongside other safe strategies, such as a CD-to-annuity transfer when existing CDs roll off at lower renewal rates, or when you are comparing it to other top MYGA annuity rates .
Penalty-Free Withdrawals and Liquidity Features
After the first contract year, you can typically withdraw up to 10% of your contract value each year without surrender charges, giving you access to a slice of your money for emergencies or planned expenses. Many clients use this feature to supplement income, fund gifts, or cover one-time purchases during retirement.
The annuity also includes additional liquidity waivers for certain health events. In many designs, full penalty-free access is available in the event of qualifying long-term care confinement or terminal illness. While it’s not a replacement for stand-alone coverage, it can complement plans that include long-term care insurance with return of premium or non-qualified long-term care annuity strategies .
The contract uses a Market Value Adjustment (MVA) provision, which helps support higher rates compared to similar non-MVA products. If you withdraw more than the penalty-free amount or surrender early during the MVA period, the surrender value may adjust up or down based on interest rate movements. Your advisor will walk through real-world examples before you commit.
Principal Protection and Tax-Deferred Growth
With GuaranteeShield, your principal is protected from market losses. As long as you follow the contract terms, short-term volatility in stocks or bonds won’t affect your annuity account value. This can be an ideal landing spot for conservative money coming from a 401(k), IRA, or brokerage account after reviewing how to protect your funds in retirement .
All growth inside the annuity is tax-deferred, so you don’t receive a 1099 each year for interest like you may with CDs or savings accounts. Instead, taxes are generally due when you take withdrawals or start income. That can matter when you’re coordinating this contract with Social Security and other income sources—especially if you’re thinking about how Social Security and annuities work together .
Estate Planning Made Simple
In the event of your death, your full contract value typically passes directly to your beneficiaries, bypassing surrender charges at death and avoiding the delays of probate when beneficiaries are properly named. This makes the annuity a straightforward component of a broader estate plan.
If you’re comparing how different annuities handle beneficiaries, it can be helpful to review:
Who Should Consider the GuaranteeShield Annuity?
This fixed annuity can be a strong fit if you:
- Want fixed, predictable growth without stock market exposure.
- Are a pre-retiree looking for safe accumulation in the years leading up to retirement.
- Value penalty-free access each year and extra liquidity in case of illness or care needs.
- Want a simple, tax-efficient way to leave money to heirs as part of your retirement and legacy plan.
It can also work well as part of a broader income strategy where you ladder different terms or combine it with other products like an immediate annuity or compare it to how much income a $1 million annuity pays for long-term retirement planning.
How Diversified Insurance Brokers Helps You Compare
As an independent, family-owned agency, we’re not tied to any one company. We compare the GuaranteeShield Fixed Annuity against other leading multi-year guaranteed annuities and income products, then show you clear illustrations so you can see:
- Guaranteed values at the end of each term.
- Liquidity options and penalties if you need access early.
- How this annuity fits into your overall retirement income and legacy plan.
If you’re thinking about moving funds from an IRA, 401(k), or other plan, you may also want to explore:
Next step: use the calculator above to see sample income, then request your personalized illustration so you can compare GuaranteeShield to other fixed annuity options side by side.
Related Pages
Talk to an Advisor or Request Your Annuity Quote
Ready to explore this annuity in more detail—or compare it with other carriers to see if even higher rates are available? With guaranteed income, principal protection, and long-term growth potential on the line, making the right choice is essential. The experienced advisors at Diversified Insurance Brokers will guide you through the options and design a strategy tailored to your retirement goals.
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FAQs: American Equity GuaranteeShield
What is American Equity GuaranteeShield?
GuaranteeShield is a fixed indexed annuity from American Equity designed to protect principal while offering indexed crediting or fixed-rate crediting options. It is built for savers who want safety, tax-deferred growth, and potential upside tied to market indexes without direct stock-market exposure.
How does interest get credited in GuaranteeShield?
You choose between fixed-rate crediting or index-linked strategies. If you opt for indexed crediting, interest may be credited based on participation rates, cap rates, or spreads — but your original principal and any credited interest remain protected from market losses.
Does GuaranteeShield include any bonuses or premium credits?
No. GuaranteeShield focuses on straightforward accumulation and downside protection. It does not include upfront bonuses or enhanced credits — growth depends entirely on credited interest under the chosen crediting method.
Are penalty-free withdrawals permitted?
Yes. Typically, after the first contract year, GuaranteeShield allows a limited annual penalty-free withdrawal (often a percentage of the contract value). Any withdrawals beyond that limit during the surrender period may be subject to surrender charges or adjustments. See our general annuity withdrawal rules for more detail.
Can GuaranteeShield be used as part of a retirement income plan?
Yes. While GuaranteeShield is primarily an accumulation annuity, you may convert the contract value later into an income stream, or use it alongside other income-oriented annuities. For ideas on building retirement income, see our retirement income annuity options guide.
What are the trade-offs or limitations?
The main trade-offs include a surrender schedule during which early withdrawals beyond penalty-free limits may trigger surrender charges or market-value adjustments. Additionally, indexed strategies may include caps, participation limits, or spreads that can limit growth in strong markets. Liquidity is limited during the surrender period, and long-term commitment is often required to realize the full benefits.
Who is GuaranteeShield best suited for?
GuaranteeShield is ideal for conservative savers, pre-retirees, or retirees who value principal protection, desire tax-deferred accumulation, and seek moderate growth potential without market volatility. It works best for those who do not need frequent liquidity and are focused on long-term financial goals.
How can I compare GuaranteeShield with other annuities?
When comparing, evaluate crediting options (fixed vs indexed), indexing mechanics (caps, participation, spreads), surrender period length, withdrawal allowances, and long-term performance potential. Use our current annuity rates page and income calculators to run side-by-side assessments.
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
