MGSV-MGIR Change, Effective 01/01/2025

As part of our annual review process, American Equity will be adjusting the Minimum Guaranteed Surrender Value – Minimum Guaranteed Interest Rate (MGSV-MGIR) to 2.65% from its current 3.00% rate on all of our annuity products. BalanceShield 10 has an additional Indexed MGSV-MGIR, which will decrease to 1.65% from its current 2.50%. These changes will apply to contracts issuing Jan. 1, 2025, and later. 

Any new applications received on or after Jan. 1, 2025, must be submitted with a new product disclosure, which will be available beginning Dec. 16, 2024. 

MGSV-MGIR Background

The MGSV-MGIR is derived from a regulatory formula based on external factors including the Constant Maturity Rate. Regulations require the derivation be done within 15 months prior to the issue of a contract. We have filed our methodology with various insurance departments to be on a calendar year basis. 

The MGSV-MGIR for a contract cannot change once the contract is issued.