american the eagleseries...2009/04/01 · surrender value (mgsv) at no time will the surrender...

Declared Interest Rate Fixed Annuity

American EAGLESeries

The

Premier Eagle10(FPDA-7-08-FL)

American Equity’s

For use in Florida only.

RETIREMENT PROTECTIONASSURING YOUR LIFESTYLE…As Americans, we work hard everyday toearn an income to take care of ourfamilies, educate our children and providefor a secure retirement. As retirement ageapproaches, we are wise to consider:

� Are Our Retirement Dollars Safe?

� How Will Taxes Affect OurStandard of Living?

� What Happens To My Family ifI Become Ill?

� Do We Have Enough Money toRetire?

BENEFITS OF ANNUITIESAt American Equity, our innovative taxdeferred annuities help you maximize bothgrowth and safety for your hard earnedretirement dollars, ultimately offering you thepeace of mind you deserve. We understandthat creating a retirement nest egg is hardwork and while many people take intoconsideration market risk, there are five otherfactors you should consider as well:

� Safety Of Premium

� Avoidance Of Probate

� Liquidity

� Guaranteed Income

� Income Taxes

SAFETY OF PREMIUMFixed annuities by their very nature areconsidered a safe money alternative. It isa contract between you and theinsurance company for guaranteedinterest and guaranteed income options.Guarantees are backed by the financialstrength and claims paying ability ofAmerican Equity.

American Equity insures this safety byinvesting your premium dollars in adiversity of investments that are closelyregulated by state insurance departments.These long-term investments ensure thestability of the company and help toprovide you with a competitive yield.

AVOIDANCE OF PROBATEIn the case of premature death, yourbeneficiaries have the accumulated fundswithin your annuity available to them andmay avoid the expense, delay andpublicity of probate. Your namedbeneficiaries can choose to receive theproceeds as monthly income or a lumpsum payment.

LIQUIDITYAmerican Equity provides you withopportunities to withdraw funds at any time(subject to applicable surrender charges).This annuity contract allows penalty-freewithdrawals of up to 10%, after the firstcontract anniversary. American Equity alsohas available certain riders which increaseliquidity in the event of confinement to anursing home, or if diagnosed with aterminal illness.

GUARANTEED INCOMEAmerican Equity can provide you with aguaranteed income from this tax-deferredannuity. You have the ability to choosefrom several different income options,including payments for a specified numberof years or income for life, no matter howlong you live.

Where Will Your RetirementDollars Take You?

2

INCOME TAXESOne of the primary advantages of deferredannuities is the opportunity to accumulate asubstantial sum of money by allowing yourpremium and interest to grow tax-deferred. Unlike taxable investments,you pay no taxes on your annuityinterest until you begin to takewithdrawals or receive income. Thisallows your money to grow faster than in ataxable account. With our annuities youearn interest on your premium, interest onyour interest and interest on what you wouldnormally pay in income taxes. Oncewithdrawn your earnings are taxed asordinary income.

The chart above illustrates how much moreyour money grows over a 20-year periodwith a tax-deferred annuity compared to anaccount that is currently taxed.

TAX TREATMENTYou may be subject to a 10% Federalpenalty if you make withdrawals orsurrender this annuity before age 591/2. Ifthis annuity is within a qualified plan all

distributions may be taxable. Under currenttax laws, annuities grow tax deferred and anannuity is not required for tax deferral in aqualified plan. Any distribution may cause ataxable event and would be taxed atordinary income. Neither American Equitynor our agents offer legal, investment or taxadvice. Please consult a qualified advisorfor these matters.

PREMIER EAGLE 10Premier Eagle 10 is a Fixed Annuity that allowsfor the accumulation of money over a longperiod of time. Because of the Bonus creditedon all premiums paid in the first 5 ContractYears, it allows for a more rapid accumulationof interest than other fixed annuities. TheBonus is applied to your Values immediately.The Bonus is received in the death benefit, soin the unfortunate case of your early death,your beneficiary will receive the entire ContractValue, including 100% of the Bonus.

So, just how do the interest crediting andbonus features of Premier Eagle 10 work,and how do they affect your long-termaccumulation of wealth for retirement? Let’stake a look:

INTEREST CREDITINGWe declare the interest rate for the firstContract Year on the date your AnnuityContract is issued. This rate is guaranteedon the initial Premium received. We willdeclare the current interest rate in advance.Additionally, we provide a MinimumGuaranteed Interest Rate which guaranteesyou a minimum return upon surrender. Wecalculate all Interest Rates as effective annualrates, compounded daily.

To calculate Withdrawal or Surrender Amountswe track each premium received by theContract Year in which we receive thepremium. We call these amounts PremiumValues. Each Premier Eagle 10 may have upto 6 Premium Values; one for each of the first5 Contract Years and one for all premiums

Premier Eagle 10(FPDA-7-08-FL)

3

Tax - Deferred

0 5 10 15 20 YEARS

$180,611

Tax - Deferred After Lump Sum Taxes (28%)

$158,040

Without TaxDeferral

$153,327

$100,000$100,000

TAXABLE VS. TAX - DEFERRED

Note: Example assumes 3% annual interest rate and 28% tax bracket.

This hypothetical example is for illustrative purposes only.

received in Contract Years 6 andbeyond. Each Premium Value equalsthe premiums received in that ContractYear, plus any Bonus; less anyWithdrawals; plus interest credited.

BONUSPremier Eagle 10 is a flexible premiumdeferred annuity with a 10% bonus onall premiums received in the first 5Contract Years.+ You may continue topay premiums after the first 5 contractyears, but no Bonus will be applied tosuch premiums received.+Bonus applies to issue ages 0 - 75. Forissue ages 76-80 the bonus is 5%.

WITHDRAWALSYou may make Withdrawals from yourContract Value at any time.Withdrawals include Penalty-freeWithdrawals and Partial Withdrawals.We will determine WithdrawalProceeds taking into consideration anyPenalty-free amount available, and anySurrender Charges. We will adjustPremium Values on a pro-rata basis forany Withdrawal taken.

1) PPeennaallttyy--ffrreeee WWiitthhddrraawwaallssOnce each Contract Year, after thefirst Year You may take one Penalty-free Withdrawal of up to 10% of theContract Value. In the first year,you may receive systematicwithdrawals of interest orRequired Minimum Distributionsfrom the Fixed Interest account asquickly as 30 days after yourContract is issued.*

2) PPaarrttiiaall WWiitthhddrraawwaallssYou may make Partial Withdrawalsat any time. We will first determineany amount of the PartialWithdrawal that would be Penalty-

free. Amounts above the Penalty-free amount are subject toSurrender Charges.

LIFETIME INCOME BENEFIT RIDER (F-LIBR-09)This rider allows the owner/annuitantto receive guaranteed income for lifewithout annuitization. There aredifferent options to choose from. SeeLIBR brochure (Form #1117) formore details.

DEATH BENEFITThe Death Benefit is the full ContractValue of your annuity contract and ispaid in a lump sum with nosurrender charges. Other incomeoptions may also be available.

NCR-100This rider is automatically included, atno cost, for Annuitants under age 75at issue. This allows you to take a100% Penalty-free Withdrawal afterthe 3rd Contract Anniversary ifconfinement in a Qualified NursingCare Center occurs after the end ofthe 3rd Contract Year and continuingfor at least 90 consecutive days. Ifconfinement occurs in the 2nd or 3rdContract Year then a 20% Penalty-freeWithdrawal is allowed.

TIR-100This rider is automatically included,at no cost, for Annuitants under age75 at issue. This allows you to takean additional Penalty-freeWithdrawal of up to 100% of theContract Value if the diagnosis of aterminal illness by a qualifiedphysician occurs after the firstContract Year, and is expected toresult in death within one year.

The Premier Eagle 10: Benefits and Accessibility

4

* Benefit subject to change and not guaranteed.

MINIMUM GUARANTEEDSURRENDER VALUE(MGSV)At no time will the Surrender Value ofthe Contract be less than 87.5% of allPremiums received, less anyWithdrawals, accumulated atMinimum Guaranteed Interest Rate-Minimum Guaranteed SurrenderValue (MGIR-MGSV) stated in theContract. The MGSV is a separatecalculation from Contract Value.

CONTRACT VALUEYour Contract Value equals allpremiums received plus your bonusless withdrawals, plus interest credited.

CASH SURRENDER VALUEThe Cash Surrender Value is theamount We pay if you Surrender theContract. The Cash Surrender Valueequals the greater of the MinimumGuaranteed Surrender Value or theContract Value less any SurrenderCharge.

SURRENDER CHARGESWe deduct a Surrender Charge onPartial Withdrawals or Surrendersduring the Surrender Charge Periodaccording to the following schedule.Surrender Charges are determinedas follows:

1) At Partial Withdrawal, we multiplythe Partial withdrawal Amountfrom each Premium Value by theappropriate Surrender ChargePercentages as shown in thefollowing table; or

2) At Surrender, we multiply eachPremium Value plus any Penalty-free Withdrawal Proceeds taken inthe past 12 months by theSurrender Charge Percentage asshown in the following tables.

SCENARIOThere is a rolling Surrender Chargeschedule for premiums received inthe first 5 Contract Years. AllPremiums received in each ContractYear 1 trough 5 will have a 15 yearSurrender Charge schedule for eachof those first 5 Contract Years.Premiums received in Contract Year6+ will be added together inaggregate through Contract Year 19,and have a Surrender Charge periodlasting 14 years.

5

For example, all premiums received inContract Year 1 will be addedtogether and credited interest asappropriate, creating a PremiumValue for Contract Year 1. If aSurrender takes place in ContractYear 2, and no other Premiums havebeen received, the Surrender ChargePercentage, as shown in the tablebelow, would be 19.5%.

In this same example, if Premiums areReceived in Contract Year 1, and thenno other Premiums are received until


Contract Year 6, each of these, withthe appropriate credited interest,creates a Premium Value. If theannuity is then Surrendered inContract Year 8, The Premium Valueassociated with Contract Year 1 willbe taken times the Surrender ChargePercentage for Contract Year 8, or16%, as shown in the table. And thePremium Value associated with thePremium received in Contract Year 6will be 11.5%, as shown in the table.

Let’s take a look at how this works:

SCP CY1(%)

CY2(%)

CY3(%)

CY4(%)

CY5(%)

CY6+(%)

CY1 20CY2 19.5 20CY3 19 19.5 20CY4 18.5 19 19.5 20CY5 18 18.5 19 19.5 20CY6 17.5 18 18.5 19 19.5 12.5CY7 17 17.5 18 18.5 19 12CY8 16 17 17.5 18 18.5 11.5CY9 15 16 17 17.5 18 11CY10 14 15 16 17 17.5 10CY11 12 14 15 16 17 9CY12 10 12 14 15 16 8CY13 7.5 10 12 14 15 7CY14 5 7.5 10 12 14 6CY15 2.5 5 7.5 10 12 5CY16 0 2.5 5 7.5 10 4CY17 0 2.5 5 7.5 3CY18 0 2.5 5 2CY19 0 2.5 1CY20 0 0

SURRENDER CHARGE PERCENTAGES (For issue ages 0-75)

SCP CY1(%)

CY2(%)

CY3(%)

CY4(%)

CY5(%)

CY6+(%)

CY1 15CY2 14 15CY3 13 14 15CY4 12 13 14 15CY5 11 12 13 14 15CY6 9.5 11 12 13 14 12.5CY7 8 9.5 11 12 13 12CY8 6.5 8 9.5 11 12 11CY9 5 6.5 8 9.5 11 10CY10 2.5 5 6.5 8 9.5 9CY11 0 2.5 5 6.5 8 7.5CY12 0 2.5 5 6.5 6CY13 0 2.5 5 4.5CY14 0 2.5 3CY15 0 1.5CY16 10 0

SURRENDER CHARGE PERCENTAGES (For issue ages 76-80)

Note: CY=Contract Year

Paul Smith has just changed jobs. Athis previous employer he had aretirement plan set-up and hadcontributed to it on a regular basis.Leaving his retirement fund at theprevious employer is not an option,so Paul must find a new place for hisretirement money. In addition, Paulhas several other financial accountsthat will mature over the next fewyears, at which time he would needto find a new place for that moneyalso. As Paul is still working he hasplenty of income to meet his everyday living expenses, and still has anamount set aside for emergencies.This money is strictly for retirement

6

The Premier Eagle 10: Scenario

and he will not need to access it for atleast 20 years. Paul meets with hisagent, who after hearing Paul's needsand reviewing his situation tells himabout the Premier Eagle 10. Paul isinterested, as it sounds like thisproduct is just what he needs tocontinue his long-term financial andretirement plan. He wants to seeexactly how the product works. Paul’sagent puts together a demonstrationbased on:

Initial Premium $100,000 - roll overfrom previous employer retirementplan• No other first year premiums

• Additional premium of $10,000in years 3,5, and 7 from Paul'sother financial vehicles that willmature soon

• Bonus of 10% on all premiums infirst 5 contract years

• Interest rate of 3% all years• Full surrender beginning of

Contract Year 11

Paul’s agent tells him that he is using a3% interest rate for all years, as this isfairly conservative, and also is easier fordemonstration purposes. He cautionsPaul that interest rates will vary if heactually purchases the annuity. Paulunderstands that this is strictly for


ContractYear

Premium Surrender Value Value



1 113,300 88,000

2 116,699 91,207

3 120,200 94,526 11,330 8,800

4 123,806 97,963 11,670 9,121

5 127,520 101,521 12,020 9,453 11,330 8,800

6 131,346 105,204 12,381 9,796 11,670 9,121

7 135,286 109,017 12,752 10,152 12,020 9,453

8 139,345 113,640 13,135 10,520 12,381 9,796

9 143,525 118,443 13,529 10,902 12,752 10,152

10 147,831 123,432 13,934 11,364 13,135 10,520

11 130,091 11,844 10,902

Premium Value 1 Premium Value 2 Premium Value 3

This hypothetical example is for illustrative purposes only.

of 2 pages. Not complete without both pages.1115-D-FL 04.01.09

American Equity’s Premier Eagle 10 deferred annuity allows forlong-term accumulation of money you don't anticipate needingin the short term, offering:

BONUSWe increase all Premiums received in the first 5 Contract Years by10%.+ We apply this Bonus on the date we receive the PremiumPayment. Premiums paid after the 6th Contract Anniversary do notreceive a Bonus.+5% for issue ages 76-80.

PREMIUM VALUES Premium Values are created upon the receipt of Premiums. Therecan be up to six Premium Values created for this Annuity Contract,one for each of the first five Contract Years, and one for Premiumsreceived for Contract Years 6 and beyond. Premium Values equalPremiums received for that Contract Year; plus any Bonus on thatPremium; less any Withdrawals; plus Interest Credited.

MINIMUM INITIAL PREMIUM $2,000 - Qualified$5,000 - Non-Qualified

MINIMUM GUARANTEED SURRENDER VALUEThe Cash Surrender Value will never be less than 87.5% times the sumof all Premiums Received; less any Withdrawals; accumulated at theMinimum Guaranteed Interest Rate-Minimum Guaranteed SurrenderValue (MGIR-MGSV).

INTEREST RATESThe Initial Interest Rate is set at issue and guaranteed for your initialpremium only. We declare current interest rate in advance andguarantee never less than the Minimum Guaranteed Interest RateContract Value (MGIR-CV) of 2%. The Minimum Guaranteed InterestRate-Minimum Guaranteed Surrender Value (MGIR-MGSV) is set atissue, guaranteed for the life of your Contract.

DEATH BENEFIT The Death Benefit provides a variety of settlement options. Yourbeneficiary(ies) will have access to your Contract’s full value.Options include, lump sum payout, annuitization, or penalty-free continuation of the Contract for a spouse. The DeathBenefit proceeds are the greater of the Contract Value orMinimum Guaranteed Surrender Value at first to die of Owneror Annuitant.

ANNUITIZATION EXCEPTION OPTIONYou may annuitize the greater of the Contract Value or theMiniumum Guaranteed Surrender Value under the contract after thefirst contract year, for a life option with at least 5 years certain.

Owner’s Initials

FIXED DEFERRED ANNUITY DISCLOSURE

SURRENDER CHARGESEach Premium Value resulting from each Premium received, andany Bonus, has it’s own Surrender Charge Schedule for theSurrender Charge Periods (SCP) shown below:Note: CY=Contract Year

SCP CY1(%)

CY2(%)

CY3(%)

CY4(%)

CY5(%)

CY6+(%)

CY1 20CY2 19.5 20CY3 19 19.5 20CY4 18.5 19 19.5 20CY5 18 18.5 19 19.5 20CY6 17.5 18 18.5 19 19.5 12.5CY7 17 17.5 18 18.5 19 12CY8 16 17 17.5 18 18.5 11.5CY9 15 16 17 17.5 18 11

CY10 14 15 16 17 17.5 10CY11 12 14 15 16 17 9CY12 10 12 14 15 16 8CY13 7.5 10 12 14 15 7CY14 5 7.5 10 12 14 6CY15 2.5 5 7.5 10 12 5CY16 0 2.5 5 7.5 10 4CY17 0 2.5 5 7.5 3CY18 0 2.5 5 2CY19 0 2.5 1CY20 0 0

SURRENDER CHARGE PERCENTAGES(For issue ages 0-75)

SCP CY1(%)

CY2(%)

CY3(%)

CY4(%)

CY5(%)

CY6+(%)

CY1 15CY2 14 15CY3 13 14 15CY4 12 13 14 15CY5 11 12 13 14 15CY6 9.5 11 12 13 14 12.5CY7 8 9.5 11 12 13 12CY8 6.5 8 9.5 11 12 11CY9 5 6.5 8 9.5 11 10

CY10 2.5 5 6.5 8 9.5 9CY11 0 2.5 5 6.5 8 7.5CY12 0 2.5 5 6.5 6CY13 0 2.5 5 4.5CY14 0 2.5 3CY15 0 1.5CY16 0


FPDA-7-08-FLPremier Eagle 10

ACCESSIBILITYYou may take Withdrawals from Your Annuity Contract.Withdrawals include amounts Withdrawn under both thePenalty-free Withdrawal and Partial Withdrawal Options. Weallow Penalty-free Withdrawals of up to 10% of Your ContractValue after the first Contract Year. Withdrawals in excess of the10% Penalty-free Withdrawal are subject to the applicableSurrender Charge. We will adjust Premium Values on a pro-ratabasis for any Withdrawal taken.

NNCCRR--110000 is included automatically for Annuitants under age 75and provides 100% penalty-free withdrawal if confinement in aQualified Nursing Care Center occurs after the end of the 3rdContract Year and continues for at least 90 consecutive days. Ifconfinement occurs in the 2nd or 3rd Contract Year the riderprovides 20% penalty-free withdrawal.

TTIIRR--110000 is included automatically for Annuitants under age 75and provides a penalty-free withdrawal of up to 100% of theContract Value if a diagnosis of terminal illness by a qualifiedphysician occurs after the 1st Contract Year and is expected toresult in death within one year.

LLIIFFEETTIIMMEE IINNCCOOMMEE BBEENNEEFFIITT RRIIDDEERR ((FF--LLIIBBRR--0099)) allows you to take aguaranteed lifetime income from your annuity without losingcontrol of your retirement assets. See Lifetime Income BenefitConsumer Guide and Disclosure (Form# 1117-D) for details.

TAX TREATMENTYou may be subject to a 10% Federal income tax penalty if youmake withdrawals or surrender this annuity before age 591/2. Ifthis annuity is within a qualified plan all distributions may betaxable. Under current tax laws, contract values accumulate,grow tax deferred, and an annuity is not required for tax deferralin a qualified plan. Any distribution may cause a taxable event.Gains from non-qualified annuity will be taxed as ordinaryincome at withdrawal. If your state imposes a premium tax, it willbe deducted from the money you receive. Neither American Equitynor our agents offer legal, investment, or tax advice. Please consulta qualified advisor for these matters.

OTHER INFORMATION• This annuity is designed for people who are willing to let their

assets build for at least 15 years. Each premium starts a newsurrender charge schedule.

• We may change your annuity contract from time to time tofollow federal or state laws and regulations. If we do, we'll tellyou about the changes in writing.

• Florida has a law that gives you a set number of days to lookat an annuity after you buy it. If you decide during that timethat you don't want it, you can return the annuity and get allyour money back.

• Like any annuity issuer, American Equity incurs expenses to selland issue its contracts, including the payment of a commissionto its agents, and these expenses are taken into considerationwhen interest rates, are established and reset. You will receiveall benefits as set forth in the contract.

Owner’s Signature Date

Joint Owner’s Signature Date

Agents Statement - I certify that I have provided a copy of thisdocument to the applicant and I have made no promises orassurances regarding values of the annuity contract, nor have Imade statements that differ from this disclosure.

Agent’s Signature Date

Agent’s State License Number

American Equity Investment Life Insurance Company

P.O. Box 71216Des Moines, Iowa 50325

www.american-equity.com888-221-12341115-D-FL 04.01.09

SEE YOUR CONTRACT FOR CURRENT INTEREST

This disclosure is intended to summarize this Annuity. Consult yourAnnuity Contract for specific terms and conditions of your Annuity.Annuity contracts are products of the insurance industry and are notguaranteed by any bank or insured by the FDIC.

If you are replacing an existing contract, carefully comparethe benefits of the proposed contract with your existingcontract to ensure your decision is in your best interest.

I have read and received a copy of this document.* I understandI am applying for a fixed deferred annuity and that past Interestactivity is not intended to predict future activity. I alsoacknowledge that this annuity meets my financial objectives andthat a full surrender or withdrawals over penalty free amountstaken within the Surrender Charge Period will result in SurrenderCharges being assessed.

II UUNNDDEERRSSTTAANNDD TTHHAATT II WWIILLLL HHAAVVEE LLIIMMIITTEEDD AACCCCEESSSS TTOO TTHHEEMMOONNEEYY IINN TTHHIISS AANNNNUUIITTYY DDUURRIINNGG TTHHEE NNEEXXTT FFIIFFTTEEEENN YYEEAARRSS,,AANNDD II AAMM NNOOTT PPUURRCCHHAASSIINNGG TTHHIISS AANNNNUUIITTYY WWIITTHH MMOONNEEYYTTHHAATT II WWIILLLL NNEEEEDD TTOO MMEEEETT MMYY EEXXPPEECCTTEEDD LLIIVVIINNGG EEXXPPEENNSSEESSDDUURRIINNGG TTHHEE SSUURRRREENNDDEERR PPEERRIIOODD..

*NAIC Buyer’s Guide is recommended for all applications.

AMOUNT OF PREMIUM RECEIVED

$Amount Received From

Owner’s Name

Date

Agent’s Name - Please Print

Agent’s Signature

Page 2 of 2 pages. Not complete without both pages.


of 2 pages. Not complete without both pages.1115-D-FL 04.01.09

American Equity’s Premier Eagle 10 deferred annuity allows forlong-term accumulation of money you don't anticipate needingin the short term, offering:

BONUSWe increase all Premiums received in the first 5 Contract Years by10%.+ We apply this Bonus on the date we receive the PremiumPayment. Premiums paid after the 6th Contract Anniversary do notreceive a Bonus.+5% for issue ages 76-80.

PREMIUM VALUES Premium Values are created upon the receipt of Premiums. Therecan be up to six Premium Values created for this Annuity Contract,one for each of the first five Contract Years, and one for Premiumsreceived for Contract Years 6 and beyond. Premium Values equalPremiums received for that Contract Year; plus any Bonus on thatPremium; less any Withdrawals; plus Interest Credited.

MINIMUM INITIAL PREMIUM $2,000 - Qualified$5,000 - Non-Qualified

MINIMUM GUARANTEED SURRENDER VALUEThe Cash Surrender Value will never be less than 87.5% times the sumof all Premiums Received; less any Withdrawals; accumulated at theMinimum Guaranteed Interest Rate-Minimum Guaranteed SurrenderValue (MGIR-MGSV).

INTEREST RATESThe Initial Interest Rate is set at issue and guaranteed for your initialpremium only. We declare current interest rate in advance andguarantee never less than the Minimum Guaranteed Interest RateContract Value (MGIR-CV) of 2%. The Minimum Guaranteed InterestRate-Minimum Guaranteed Surrender Value (MGIR-MGSV) is set atissue, guaranteed for the life of your Contract.

DEATH BENEFIT The Death Benefit provides a variety of settlement options. Yourbeneficiary(ies) will have access to your Contract’s full value.Options include, lump sum payout, annuitization, or penalty-free continuation of the Contract for a spouse. The DeathBenefit proceeds are the greater of the Contract Value orMinimum Guaranteed Surrender Value at first to die of Owneror Annuitant.

ANNUITIZATION EXCEPTION OPTIONYou may annuitize the greater of the Contract Value or theMiniumum Guaranteed Surrender Value under the contract after thefirst contract year, for a life option with at least 5 years certain.

Owner’s Initials

FIXED DEFERRED ANNUITY DISCLOSURE

HOME OFFICE COPY - PLEASE DETACH, SIGN, AND RETURN TO ADDRESS ON BACK

SURRENDER CHARGESEach Premium Value resulting from each Premium received, andany Bonus, has it’s own Surrender Charge Schedule for theSurrender Charge Periods (SCP) shown below:Note: CY=Contract Year

SCP CY1(%)

CY2(%)

CY3(%)

CY4(%)

CY5(%)

CY6+(%)

CY1 20CY2 19.5 20CY3 19 19.5 20CY4 18.5 19 19.5 20CY5 18 18.5 19 19.5 20CY6 17.5 18 18.5 19 19.5 12.5CY7 17 17.5 18 18.5 19 12CY8 16 17 17.5 18 18.5 11.5CY9 15 16 17 17.5 18 11

CY10 14 15 16 17 17.5 10CY11 12 14 15 16 17 9CY12 10 12 14 15 16 8CY13 7.5 10 12 14 15 7CY14 5 7.5 10 12 14 6CY15 2.5 5 7.5 10 12 5CY16 0 2.5 5 7.5 10 4CY17 0 2.5 5 7.5 3CY18 0 2.5 5 2CY19 0 2.5 1CY20 0 0


SCP CY1(%)

CY2(%)

CY3(%)

CY4(%)

CY5(%)

CY6+(%)

CY1 15CY2 14 15CY3 13 14 15CY4 12 13 14 15CY5 11 12 13 14 15CY6 9.5 11 12 13 14 12.5CY7 8 9.5 11 12 13 12CY8 6.5 8 9.5 11 12 11CY9 5 6.5 8 9.5 11 10

CY10 2.5 5 6.5 8 9.5 9CY11 0 2.5 5 6.5 8 7.5CY12 0 2.5 5 6.5 6CY13 0 2.5 5 4.5CY14 0 2.5 3CY15 0 1.5CY16 0



ACCESSIBILITYYou may take Withdrawals from Your Annuity Contract.Withdrawals include amounts Withdrawn under both thePenalty-free Withdrawal and Partial Withdrawal Options. Weallow Penalty-free Withdrawals of up to 10% of Your ContractValue after the first Contract Year. Withdrawals in excess of the10% Penalty-free Withdrawal are subject to the applicableSurrender Charge. We will adjust Premium Values on a pro-ratabasis for any Withdrawal taken.

NNCCRR--110000 is included automatically for Annuitants under age 75and provides 100% penalty-free withdrawal if confinement in aQualified Nursing Care Center occurs after the end of the 3rdContract Year and continues for at least 90 consecutive days. Ifconfinement occurs in the 2nd or 3rd Contract Year the riderprovides 20% penalty-free withdrawal.

TTIIRR--110000 is included automatically for Annuitants under age 75and provides a penalty-free withdrawal of up to 100% of theContract Value if a diagnosis of terminal illness by a qualifiedphysician occurs after the 1st Contract Year and is expected toresult in death within one year.

LLIIFFEETTIIMMEE IINNCCOOMMEE BBEENNEEFFIITT RRIIDDEERR ((FF--LLIIBBRR--0099)) allows you to take aguaranteed lifetime income from your annuity without losingcontrol of your retirement assets. See Lifetime Income BenefitConsumer Guide and Disclosure (Form# 1117-D) for details.

TAX TREATMENTYou may be subject to a 10% Federal income tax penalty if youmake withdrawals or surrender this annuity before age 591/2. Ifthis annuity is within a qualified plan all distributions may betaxable. Under current tax laws, contract values accumulate,grow tax deferred, and an annuity is not required for tax deferralin a qualified plan. Any distribution may cause a taxable event.Gains from non-qualified annuity will be taxed as ordinaryincome at withdrawal. If your state imposes a premium tax, it willbe deducted from the money you receive. Neither American Equitynor our agents offer legal, investment, or tax advice. Please consulta qualified advisor for these matters.

OTHER INFORMATION• This annuity is designed for people who are willing to let their

assets build for at least 15 years. Each premium starts a newsurrender charge schedule.

• We may change your annuity contract from time to time tofollow federal or state laws and regulations. If we do, we'll tellyou about the changes in writing.

• Florida has a law that gives you a set number of days to lookat an annuity after you buy it. If you decide during that timethat you don't want it, you can return the annuity and get allyour money back.

• Like any annuity issuer, American Equity incurs expenses to selland issue its contracts, including the payment of a commissionto its agents, and these expenses are taken into considerationwhen interest rates, are established and reset. You will receiveall benefits as set forth in the contract.

Owner’s Signature Date

Joint Owner’s Signature Date

Agents Statement - I certify that I have provided a copy of thisdocument to the applicant and I have made no promises orassurances regarding values of the annuity contract, nor have Imade statements that differ from this disclosure.

Agent’s Signature Date

Agent’s State License Number

American Equity Investment Life Insurance Company

P.O. Box 71216Des Moines, Iowa 50325

www.american-equity.com888-221-12341115-D-FL 04.01.09

SEE YOUR CONTRACT FOR CURRENT INTEREST

This disclosure is intended to summarize this Annuity. Consult yourAnnuity Contract for specific terms and conditions of your Annuity.Annuity contracts are products of the insurance industry and are notguaranteed by any bank or insured by the FDIC.

If you are replacing an existing contract, carefully comparethe benefits of the proposed contract with your existingcontract to ensure your decision is in your best interest.

I have read and received a copy of this document.* I understandI am applying for a fixed deferred annuity and that past Interestactivity is not intended to predict future activity. I alsoacknowledge that this annuity meets my financial objectives andthat a full surrender or withdrawals over penalty free amountstaken within the Surrender Charge Period will result in SurrenderCharges being assessed.

II UUNNDDEERRSSTTAANNDD TTHHAATT II WWIILLLL HHAAVVEE LLIIMMIITTEEDD AACCCCEESSSS TTOO TTHHEEMMOONNEEYY IINN TTHHIISS AANNNNUUIITTYY DDUURRIINNGG TTHHEE NNEEXXTT FFIIFFTTEEEENN YYEEAARRSS,,AANNDD II AAMM NNOOTT PPUURRCCHHAASSIINNGG TTHHIISS AANNNNUUIITTYY WWIITTHH MMOONNEEYYTTHHAATT II WWIILLLL NNEEEEDD TTOO MMEEEETT MMYY EEXXPPEECCTTEEDD LLIIVVIINNGG EEXXPPEENNSSEESSDDUURRIINNGG TTHHEE SSUURRRREENNDDEERR PPEERRIIOODD..

*NAIC Buyer’s Guide is recommended for all applications.

AMOUNT OF PREMIUM RECEIVED

$Amount Received From

Owner’s Name

Date

Agent’s Name - Please Print

Agent’s Signature

Page 2 of 2 pages. Not complete without both pages.


demonstration purposes only.

Based on the above assumptions,after the annuity contract was in forcefor 11 years, Paul’s values would looklike the tables on Page 6 and 7.

Paul could now see that eachPremium he would pay would have itsown associated Premium Value andSurrender Value, based on theSurrender Charge percentageassociated with the Contract Year in

7

ContractYear



1 113,300 88,000

2 116,699 91,207

3 131,530 103,326

4 135,476 107,084

5 150,870 119,774

6 155,396 124,121

7 10,300 8,800 170,358 137,422

8 10,609 9,116 175,469 143,073

9 10,927 9,442 180,733 148,939

10 11,255 9,835 186,155 155,151

11 10,242 163,079

Premium Value 4 Contract Total

which the premium is paid. By addingeach Premium Value and AssociatedSurrender Value for each of thePremium Values for each ContractYear together, he could see what theoverall Contract Value for eachcontract Year would be. Similarly, byadding the Surrender Value amountassociated with each Premium Valuehe could now see what the SurrenderValue of the entire contract would beat any Contract Year.

It is the American Equity dream to help Americans enjoy theirretirement years with financial security. We care about providingproducts that protect you and your family. Our employee/ownersare committed to ensuring peace of mind for your retirementfuture. Our commitment to unsurpassed service and strongcontract owner benefits has allowed American Equity toexperience consistent, record growth in our industry.

When you buy an American Equity annuity, you are buying apromise, a promise that we will always be there when you needus. If you want an annuity that can offer you safety of premium,flexibility, tax advantages, accessibility when you need it and achance to have a lifetime income, we have it. “We’re the One”to offer you diverse financial planning choices for yourretirement dollars.

See Product Disclosures for further details.

1115-SB-FL 04.01.09

A.M. Best uses 15 rating categories ranging from A++ to F and measures performance in the areas of Investment Quality, Capital Adequacy, Policy Reserves, Cost Control and Management Experience. An A- rating from A.M. Best is its fourth highest rating.

5000 Westown PkwyWest Des Moines, IA 50266

888-221-1234 � 515-221-9947 (fax)www.american-equity.com

D.J. Noble, Chairman


American EAGLESeries

The

Declared Interest Rate Fixed Annuity

american the eagleseries...2009/04/01 · surrender value (mgsv) at no time will the surrender...

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