American AssetShield Bonus 10 has a rider charge, which is the fee taken at the end of each indexed strategy term. It’s calculated by multiplying the rider fee (1.5% for monthly and annual strategies and 3% for 2-year strategies) by the strategy value on the first day of the term. The rider fee won’t change during the surrender charge period and is capped at 3%.

One of the American AssetShield Bonus 10 advantages is the annuity’s great selection of index options. There are a total of 6 choices available, and to understand each one better, we’ve prepared a short description for you: 

The BlackRock® Adaptive US Equity 7% Index blends exposure to U.S. stocks, government bonds, and cash. It adjusts daily depending on market trends to balance growth and safety.

The S&P 500® Index tracks 500 top U.S. companies and is one of the most widely used indicators of the stock market's overall performance.

The S&P 500® Dividend Aristocrats® Daily Risk Control 5% Excess Return Index includes companies in the S&P 500 that have consistently increased their dividends for 25+ years. This option focuses on stability and reducing risk.

The BofA Destinations Index™ is designed with Bank of America. This index aims to provide growth and stability by adjusting to changing market conditions.

The SG Global Sentiment Index evaluates global market trends based on investor sentiment and allocates funds across diverse global assets, such as stocks and bonds from the U.S., Europe, and Asia.

The UBS Tech Edge Index focuses on the U.S. technology and biotech sectors. It uses data to monitor and adapt to market conditions, blending stocks with bonds for balanced growth.

American AssetShield Bonus 10 offers multiple crediting strategies, including: 

• Fixed Interest Strategy - The interest rate is set when your contract starts and is guaranteed for at least one year. It won’t go below 0.50%, ensuring a minimum return.
   
• Indexed Strategies - These options link your returns to changes in specific market indices. The strategies available include:   
  ⚬︎ Monthly Point to Point - Interest is calculated based on how the index changes each month over a year. 
  ⚬︎ Annual Point to Point - Interest is based on the index change from one year to the next.
  ⚬︎ Year Point to Point - Interest is calculated by comparing the index price at the start and end of a two-year period.

The American AssetShield Bonus 10 annuity has surrender fees, a percentage of which decreases with each year. 

The surrender value of your annuity will always be at least 87.5% of the money you put in, minus any withdrawals, and will grow at the minimum guaranteed interest rate. If you take out more than the allowed free amount or fully surrender the annuity during the surrender charge period, a fee will be deducted based on the surrender charge schedule.

*The interest rate may vary depending on the state. 

American AssetShield Bonus 10 advantages include: 
 

Free Withdrawals

• With the American AssetShield Bonus 10, you can benefit from withdrawing 10% of your contract value without any penalties. 
• Free withdrawals are subject to ordinary income tax, which is an important factor to consider before annuity taxation. 

Premium Bonus Vesting Schedule

• The bonus on your first-year payments is earned gradually over 10 years. Starting in year two, 10% of the bonus becomes guaranteed each year until you’re fully vested by year 10.
• If the owner passes away, the full bonus is guaranteed from the start, and the beneficiary will receive the entire contract value. Beginning in year two, you can make free withdrawals of up to 10% of the contract value each year without any fees or affecting the bonus vesting.

Performance Rate Rider

• The Performance Rate Rider enhances growth by increasing cap, participation, or replacement rates, offering more options for accumulation based on your goals.
• It includes a locked-in fee and uses index performance to determine interest credits, with options like replacing the three highest monthly gains.