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					Administrative                                           Financial
Guidelines                                               Rating                                                                      Systematic
  • Complete Form 4006 to request the start of
    Systematic Withdrawal                                                              American Equity’s
                                                                                        commitment to
                                                                                                                      Withdrawal
                                                                                                                          A Flexible Distribution Program
  • Payments will begin within 30 days after we                                        sound business
    receive the request (or 30 days after contract                                   principles has been
    issue if the request form and the premium            recognized by A.M. Best, a nationally recognized
    accompany the application)                           industry rating authority.

  • Systematic Withdrawal may be changed once            A.M. Best’s rating of “A-” (Excellent) for American
    each contract year, with 30 days notice              Equity is a measure of performance in the areas of:
  • The minimum withdrawal must be $50, or a less        Investment Quality     Capital Adequacy
    frequent mode will be used. (For annual                Policy Reserves         Cost Control
    payments, contract minimums will prevail)                      Management Experience
                                                         A.M. Best uses 15 rating categories ranging from
  • Once started, Systematic Withdrawal will
                                                                   .
                                                         A++ to F An A- rating from AM Best is its fourth
    continue until we receive written notice to
    change it or the Minimum Contract Value              highest rating.
    Allowed is reached.
                                                         Tax Interpretations
Systematic Withdrawal is a distribution system           Generally, all distributions from deferred
developed by American Equity for the benefit of our      annuities are deemed to be interest first, and thus
contract owners. It is not a guaranteed benefit in any   are subject to income tax.          Furthermore,
annuity contract and is subject to change.               distributions prior to age 59½ may be subject to
                                                         additional IRS penalties.
Not all contract forms are eligible for systematic
Withdrawal. Contact the Marketing Department             Neither American Equity Investment Life Insurance
for details.                                             Company nor any of its agents give legal, tax or
                                                         investment advice. The information here is a
                                                         summary of our understanding of current tax laws
                                                         as they relate to this insurance product. Consult
                                                         your own personal advisor for these matters.




                                                                        .O.
                                                                       P Box 71216
                                                                       Des Moines, IA 50325
                                                                       888-221-1234
                                                                       Fax 515-221-9947
                                                                       www.american-equity.com
                                                                                                               Imediate Income
                                                                                                               Fixed Percentage
                                                                                                               Income Options
                                                                                                               Interest Only
                                                         Form 1005 (08/09/06)                                  Fixed Amount
  What are your                                     All withdrawals or surrenders, including                            distributions from contracts offering additional


Income
                                                    Systematic Withdrawals, may be subject to the                       interest. By current Company practice, these
             Needs?                                 surrender charges described in your contract. If
                                                    available, a distribution will incorporate the 10%
                                                                                                                        payouts will be penalty-free if the contract form
                                                                                                                        allows penalty-free distributions of interest-only
                                                    penalty-free withdrawal privilege as determined                     in the first year, and the amount being paid out
Whether you’re faced with income needs for
                                                    by the contract provisions.                                         is less than the actual interest credited.
retirement, or the special care of a family
                                                    NOTE: While all Systematic Withdrawals in any contract year will
member, you’ve probably asked yourself:             be treated as one withdrawal for penalty purposes, once the         Fixed Percentage
                                                    cumulative pay-out equals the penalty-free amount, future
• Where can I get a competitive interest rate for   payments in that year will have the appropriate charges deducted.   We will send you a fixed percentage of your
  my dollars?                                                                                                           Contract Value in regular installments. The
• Will my money be safe?
• Will I have access to my funds if I need it?      How it Works                                                        amount of the distribution payment will be re-
                                                                                                                        calculated each contract anniversary.
• Do I have a choice of income options?             Simply complete the request form and we will mail                   NOTE: Fixed Amount and Fixed Percentage payouts may
• How will income taxes affect my rate of growth?   or deposit electronically to your bank account a                    result in a reduction of your original premium.
                                                    payment at regular intervals until you notify us to
• Can I protect myself against inflation?
Systematic Withdrawal is a distribution
                                                    make a change, or until the Minimum Contract                        The Advantages
                                                                                                                                  Systematic
                                                    Value Allowed is reached. You may select from
program developed by American Equity to
address your concerns.
                                                    three methods of calculating the amount of your
                                                    distribution, as long as each withdrawal equals at
                                                                                                                         of
What is Systematic
                                                    least $50.00.                                                                 Withdrawal
                                                                                                                        The attractions of Systematic Withdrawal over
Withdrawal?                                         At the same time, your contract will continue to earn
                                                    current renewal interest rates, as well as all other                normal annuitization settlement options are
With Systematic Withdrawal you can receive          benefits of an American Equity deferred annuity.                    primarily two-fold. First, you can design and
income after 30 days from an American Equity                                                                            modify the distribution format to meet your
tax-deferred annuity on a monthly, quarterly,
semi-annual or annual basis - while keeping
                                                    What Are My Options?                                                changing cash flow needs. Second, you keep
                                                                                                                        the ability to make additional partial
complete control over your Contract Value.          Interest Only                                                       withdrawals, over and above the regular
                                                                                                                        distributions, should you have any special
Unlike the settlement option for a standard         The interest credited to the contract will be sent to               needs in the future.
annuity, with Systematic Withdrawal you             you at regular intervals. Since interest is
  maintain your right to make partial or full       compounded and credited daily, distributions more                   In addition, in the event of your death, the
      withdrawals from your contract.               frequent than annually will result in a slightly lower              remaining Contract Value will be available to
                                                    effective annual yield than the stated rate.                        your beneficiaries, which may not be the case
                                                    NOTE: When used with a first-year additional interest product,      with all settlement options.
                                                    interest checks will be reduced significantly after the first
                                                    contract year. IT IS SUGGESTED THAT INTEREST-ONLY NOT BE
                                                    USED BEFORE THE FIRST ANNIVERSARY WITH ADDITIONAL
                                                    INTEREST ANNUITIES.
                                                                                                                        How Safe is My Money?
                                                                                                                        Our high standard of quality investments and
                                                    Fixed Amount                                                        emphasis on stability have resulted in our
                                                    You may choose to receive the same amount in                        investing in a high percentage of government,
                                                    each check, regardless of future interest rates or                  government agency, and investment grade
                                                            other withdrawal activity. This method is                   corporate bonds—providing you with
                                                                          recommended for first-year                    outstanding stability for your funds!


                                                                 American Equity Investment Life Insurance Company

				
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