Independent Review of the American Equity 7 MYGA Annuity

What We Will Cover in this Annuity Review

In this review, we will be covering the following details on the American Equity 7 MYGA fixed annuity:

  • Product TypeIndependent Review of the American Equity 7 MYGA Annuity
  • Fees
  • Current Rates
  • Realistic long-term return expectations
  • How it is used
  • How it is most poorly used

Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.

If you have been considering the purchase of an annuity because you want to get a guaranteed interest rate on your funds, and you want your hard earned savings to remain safe – regardless of what happens in the stock market – then the American Equity 7 MYGA (Multi-Year Guarantee) annuity – could be a good option for you. One reason for this is because this particular annuity provides the opportunity to grow your funds using a guaranteed rate of return, while at the same time protecting your principal – in any type of market environment.

However, prior to going out and purchasing this annuity, it is important that you first get a more thorough understanding of its benefits, and its potential drawbacks, because if you decide that it isn’t for you after you’ve made a commitment, it could be fairly expensive to get out of it.

Throughout the past several years or so, annuities have become much more popular with those who are retired and who are approaching this time in their lives. One reason for this is the fact that fixed and fixed indexed annuities offer a promise of safety. So, you can count on a more restful night’s sleep going forward.

These products also help to alleviate the concern about running out of money in retirement. That’s because, if you go the route of choosing the lifetime income option, the annuity will continue to pay out an income stream, no matter how long you need it. (You can also typically add a joint income recipient, such as a spouse or significant other, who can also take advantage of receiving a lifetime income).

Because of this increase in demand for annuities, though, many insurance carriers have been introducing new products – and unfortunately, this can make a product that is already somewhat confusing even more so. This is actually true for well-informed consumers, as well as many insurance and financial advisors!

With that in mind, unless the advisor that you work with has a primary focus on selling annuity products, you really should do some additional research on these products, as they will oftentimes require that you deposit a large chunk of your savings into them.

Annuity and Retirement Income Planning Information That You Can Trust

If this is your first visit to our website, then please allow us to officially welcome you here to We are a team of annuity pros who focus on offering very comprehensive – and unbiased – annuity reviews. We have been at this for quite a few years now – longer than our competitors. And, because of the in-depth reviews that we provide, we have become a highly trusted source of annuity information online.

Over the past decade or so, however, there have been a number of “copycat” websites that have popped up on the Internet. While some of these can give you information about annuities, what you are likely to find is that they are oftentimes just simply reiterating what our information already shows.

If you have been spending any amount of time researching annuity information online, then it is likely that you have run across some very conflicting details about these products. This is not entirely surprising, however, because there are a lot of annuities out there to choose from now, and everyone seems to have a different opinion of them.

It’s possible that you have also recently gone to an annuity seminar. Here, the presenter may have given you more in-depth details about the American Equity 7 MYGA fixed annuity – or some other similar product. It could be that your attendance at that seminar that has ultimately brought you here to our website in search of more information.

In your quest for more information about annuities via the Internet, you may also have seen some annuity marketing websites that focus on luring visitors in for the purpose of obtaining their contact details. These sites will oftentimes do so by making some fairly bold claims about the annuities they offer, such as:

  • High Annuity Income Payouts
  • Guaranteed Income for Life
  • Top-Rated Annuity Carriers
  • Low Fees

Does this sound at all familiar?

But, as enticing as claims such as these may be, it is essential that you first verify their validity before you move forward with a long-term financial commitment, just like you would likely do before purchasing any other type of “high ticket” item.

If you are looking for more details on the MYGA 7 annuity from American Equity, then you have certainly landed in the right place. In fact, we dare say that our website is the only place on the Internet where you can really get all of the pertinent details that you need to make a well-informed purchase decision.

It is important to note here, however, that in addition to providing you with all of the nice keen benefits of this product, we are also going to lay out the product’s drawbacks. This is so that you will be in a better position to make a truly well-informed decision as to whether or not this is really the annuity for you.

We do want to be clear in that, we believe that annuities are fine products – and they can be quite beneficial to some people – as long as they fit in with your overall financial objectives. This annuity review is here to provide you with what you need to know.

So, with that being said, let’s go ahead and get started!

American Equity 7 MYGA Fixed Annuity at a Glance

Product Name7 MYGA (Multi-Year Guarantee)
IssuerAmerican Equity
Type of ProductMYGA / Fixed Annuity
S&P RatingA- (Stable)
Phone Number(888) 221-1234

Opening Thoughts on the American Equity 7 MYGA Fixed Annuity

American Equity Investment Life is considered to be a specialist in the area of annuities. The company was founded in 1995, and while that may not seem like a very long time as compared to other insurance companies, this insurer has definitely made its mark in the annuity arena – especially fixed and fixed indexed annuities.

The company is strong and stable from a financial perspective, and it has earned high ratings from the insurer rating agencies, including an A- (Excellent) from A.M. Best Company, and an A- from Standard & Poor’s.

Over the past few years, fixed annuities in have become much more popular with investors. One of the key reasons for this is because these products can provide the opportunity for a guaranteed rate of growth, while also keeping the account value safe and sound, no matter what occurs in the stock market. And, like other types of annuities, a fixed annuity will also be able to pay out a lifetime income in retirement so that you don’t have to worry about your income stream running out. In this case, you can count on a specific amount of income in the future.

However, while this may sound like a win-win-win scenario, the truth is that whenever something sounds too good to be true, it very well may be. In any case, it can be beneficial to at least check the information further, in order to ensure that you know all of the advantages, as well as any potential drawbacks.

Before we get into the gritty details, here are some necessary legal disclosures…

This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. American Equity Investment Life has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see out perspective when breaking down the positives and the negatives of this particular annuity. Before purchasing any type of insurance and/or investment product, it is important that you do your own due diligence, and that you consult a properly licensed professional if you should have any specific questions that relate to your individual situation. All of the names, marks, and materials that were used for this annuity review are the property of their respective owners.

For more information on how to compare annuities in order to determine which one may be the best for you and your financial circumstances, Invalid shortcode attributes to obtain our free annuity report.

How American Equity Investment Life Describes the 7 MYGA

American Equity describes the 7 MYGA annuity as a product that offers:

  • Guaranteed Income
  • Liquidity Features
  • Stability
  • Avoidance of Probate

In addition, this annuity offers a multi-year guaranteed interest rate. And, within 30 days after the end of the guarantee period, you may choose to do one of the following:

  • Apply the contract value to a settlement option
  • Take partial withdrawals – without any market value adjustment or surrender charge – and apply the remaining contract value to a new guarantee period
  • Surrender the annuity for the full contract value, without a market value adjustment or surrender charge
  • Renew the annuity for another guarantee period of the same duration as the previous guarantee period. (It is important to note that this option will be automatically exercised if none of the others are chosen).

The annuity also offers a death benefit, whereby at the first to die (of the annuitant or owner), the company will pay out the full contract value to the named beneficiary (or beneficiaries).

How an Insurance or Financial Advisor Might “Pitch” this Annuity

These days, there aren’t many guarantees that you can count on – especially when it has to do with financial vehicles. So, it’s likely that if you’ve been presented this annuity by an insurance or financial advisor, one of the main areas that they’ve keyed in on is the 7-year rate guarantee that comes with this annuity. Here, you are locked into a set rate for the first seven years of owning the product.

But is this necessarily a good thing?

That depends. It could be if rates remain low for the duration. But if they spike up, then you could feel a bit locked in. In many ways, MYGAs (multi-year rate guaranteed annuities) can be like CDs, as you’ll have your money locked up for a certain amount of time, and are penalized with a withdrawal fee if you take out a funds (in this case, more than 10% of the contract value) during the surrender period. And, both a CD and an MYGA annuity are typically purchased using a single lump sum premium. (With the annuity, though, you do get the benefit of tax-deferred growth, though).

It’s also important to pay close attention to the renewal period on an MYGA annuity, because sometimes these products will automatically renew – and restart the surrender period – unless you initiate the call to your annuity sales representative/company and let them know that you don’t plan to go with another multi-year guaranteed period of time on the rate.

On top of all that, just like with other fixed annuities, over the past ten years or so, the return that is offered by the insurance carrier is nothing to jump up and down about. In fact, in this case, you will oftentimes be lucky to be able to meet – much less beat – inflation, which in turn could have a negative impact on your future purchasing power in retirement.

What About the Fees on the American Equity 7 MYGA Annuity?

When it comes to fees, most fixed rate MYGA annuities pay lower commissions (which are oftentimes built directly in, so it won’t have as much of an impact as would a 5 or 6% up-front sales commission).

There are also usually no internal fees on these types of products. So, you’ll know just exactly what your interest rate is, as well as what your account value will be in the future – which is contractually guaranteed.

But, as with other annuities, you will need to ensure that the money you place into the American Equity 7 MYGA annuity isn’t something that you will need in the near future. That’s because there are seven years of surrender charges on this annuity.

This means that you’ll incur a withdrawal fee (which grades down over time). And, if you make withdrawals before you turn age 59 1/2, you’ll also be hit with an additional 10% “early withdrawal” fee from the IRS.

The Annuity Gator’s End Take on the 7 MYGA Annuity from American Equity

Where it works best:

This particular annuity will usually work the best for those who are looking for:

  • Principal protection
  • A guaranteed rate of interest (at least for a set period of time)
  • Guaranteed lifetime income in the future

Where it works the worst:

Conversely, the American Equity 7 MYGA annuity may not fare so well for those who:

  • Want the opportunity for a higher rate of return on their money
  • Want to access more than just 10% of the contract value within the first few years (i.e., don’t want their money locked in for a multi-year time period)
  • Do not plan on using the lifetime income feature

In Summary

There are a number of key factors that should ideally be taken into consideration if you are thinking about purchasing an annuity. These should include – but they are not limited to – how the annuity can produce a return, how safe your money will be, how the income will pay out, and whether or not there are any other optional features that may be added to the annuity (as well as any added costs).

If you are considering the purchase of a Multi-Year Guarantee Annuity like the American Equity 7 MYGA, then you can be assured that your principal will be safe – regardless of what happens in the stock market. You can also count on a guaranteed lifetime income, no matter how long you may live (provided, of course, that you choose the annuity’s lifetime income payout option).

Yet, even with all of the seemingly nice features that are included with the 7 MYGA annuity from American Equity, there could still be a better alternative out there for you – particularly if you are seeking the opportunity for a higher return.

The only way to truly know how this annuity may perform, based on your particular situation and needs, is to have it tested. We can do that for you by running the numbers through our annuity calculator, and can then provide you with a spreadsheet showing the results.

In order to receive this information, just simply contact us via our secure online contact form here.

Do You Have Any Additional Questions About the American Equity 7 MYGA Annuity? Did You Notice Any Mistakes?

We understand that this annuity review went a tad bit long. So, we thank you for sticking with us through to the end here. When creating our annuity reviews, though, we would much rather “err” on the side of being “too long” as versus not long enough.

Therefore, if you found that this annuity review was helpful for you, then please feel free to forward it on to anyone else that you think may benefit from it. Alternatively, if this review led you to have even more questions, then please let us know that, too.

Are there any other annuities that you would like to see reviewed?

There are lots and lots of annuities available in the marketplace today. So, if you would like to see a particular annuity reviewed, then just let us know the name of the annuity (or annuities), and our team of annuity “geeks” will get on the case. So, be sure to check back soon for the new reviews.


The Annuity Gator

Independent Review of the American Equity 7 MYGA Annuity


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