Lifetime Income Benefit Rider

Lifetime Income Benefit Rider For use with Fixed Indexed Annuities The one who works for you!

You ve Done the Work. Now Enjoy the Ride. You worked hard. From saving up for your first car to building up your nest egg, you put in the time and the energy to prepare for what may lie ahead. And, now you have earned the opportunity to enjoy your golden years. As you look forward and consider your retirement, you want financial solutions that provide savings protection and future growth potential. Fixed indexed annuities with a Lifetime Income Benefit Rider can offer you guaranteed income for life, tax-deferred growth and flexible payout options. That way, with the right plan, you can spend more of your retirement enjoying your accomplishments while knowing your money is there for you when you need it. 2

Lifetime Income Benefit Rider (LIBR) We are living longer lives and enjoying longer retirements. This means you have more time to spend with your family, more time to travel and more time to enjoy your milestones. At American Equity, we believe that longevity should be celebrated. That s why we design products with income you cannot outlive. A Retirement Paycheck Our Lifetime Income Benefit Rider affords you a consistent paycheck, so that your retirement is focused on what you want to do and not what you wished you could have done. When you purchase the Lifetime Income Benefit Rider with your American Equity product you are guaranteed an income stream for the rest of your life. You will know the guaranteed minimum you will receive on a monthly, quarterly, semi-annual or annual basis. The amount you receive is determined by a few simple factors: Your Age when you decide to begin taking income from your Contract Your Payout whether you want income for as long as you or you and your spouse live Your Timing the longer you wait to take income, the higher the payouts will be Rider Overview Offers income you cannot outlive Provides a steady paycheck throughout retirement Allows for spousal income benefits My money will be there when I need it. 3

Key Terms At American Equity, we pride ourselves on trying to make our products and our materials as easy to understand as possible. We know there is a lot that goes into retirement planning, and in an effort to make the process a little easier we have provided definitions to key terms used in annuity planning. Key Annuity and Lifetime Income Benefit Rider Terms: Annuitization Conversion of accumulated value of your annuity into regular guaranteed income payments. Contract Value Value of the funds in your Base Contract. Income Account Value (IAV) This value is used solely to determine the amount of income you will receive under this Rider. It is not a traditionally accessible value. Instead, this serves as a measuring value tool for purposes of the Rider only. IAV Multiplier An annually declared factor used to calculate your IAV credit for the Indexing Income option. IAV Period The period of time during which the Income Account Value is credited the Income Account Value Rate. IAV Rate Annual effective interest rate that is applied to the Income Account Value. Index Credit The amount credited to your Contract Value based upon the performance of the index allocation selected. Lifetime Income Benefit (LIB) The amount of income you will receive should you elect to take payments. It is based upon your IAV, gender and age at the time of election. Reset The IAV Period can be reset once during the Contract for most options. There are two situations when this may be advantageous: At the end of the initial IAV Period, if lifetime income payments have not begun. If the Contract Value is higher than the IAV. Joint Life Payout A legal spouse, as defined under federal law and at least 50 years old, payment is based on the age of the younger joint payee. Payments are made through the life of the last surviving spouse. Rider Fee The fee charged for this Rider, if applicable, is deducted from your Contract Value each year as long as the LIBR is active. This fee may change at time of Reset. Single Life Payout Payout factors determined based on your age at the time of payout election. Surrender Full or partial distribution of contract values. Surrender Charge Fee charged, when applicable, for full or partial distribution. 4

How Annuities Work for Your Retirement Since American Equity s Lifetime Income Benefit Rider is only available with our Fixed Indexed Annuity products, we want to give you a quick overview of annuity basics. An annuity is a Contract purchased from an insurance company to help you accumulate assets for retirement. This means your Contract guarantees are backed by the financial strength and claims paying ability of American Equity. Your funds are safe and secure with us we have been a part of the fixed indexed annuity market from the very beginning. Today, we are one of the most successful American-owned and operated companies in the industry. Fixed Indexed Annuity Indexed annuities are fixed annuities that provide an opportunity to potentially earn more interest than traditional fixed annuities and other safe money alternatives. This is done by basing interest earned on an increase in an equity or bond index. While the value of this Contract may be affected by an external index, this annuity does not participate directly in any stocks or equity investments. You are not buying shares of stock or an index. Your money is protected from market volatility so that a down market does not subtract from your principal. Tax-Deferred Growth A primary advantage of indexed annuities is the opportunity for growth by allowing your savings and interest to grow tax-deferred. Unlike taxable investments, you pay no taxes on your annuity interest until you begin to take withdrawals or receive income. This allows your money to grow faster than in a taxable account. American Equity, The one who works for you! A- Rating with A.M. Best and S&P 500 1 Listed on the NYSE ticker: AEL #3 all-time sales of Fixed Indexed Annuities 2 Barron s Top Annuity Provider: 2011 2015 Fortune 100 Fastest Growing Companies: 2011, 2012, 2015 5

Six Lifetime Income Benefit Rider Options There are a total of six Lifetime Income Benefit Rider choices available. Each of these options provides a guaranteed revenue stream for as long as you need. Your lifestyle goals and your retirement plan will help you determine which option best suits your individual income needs. Please keep in mind, the IAV option is chosen at issue and cannot be changed. Lifetime Income Benefit Rider Guaranteed Income Here is an overview of the first three Lifetime Income Benefit Rider options available with your American Equity product. Each option offers a guaranteed IAV rate. Guaranteed Income Option 1 Issue Age: All Ages IAV Rate: 3.0% Compounding IAV Period: 20 years IAV Reset: Years 5 10 Fee: None Option 2 Issue Age: 50+ IAV Rate: 5.5% Compounding IAV Period: 20 years IAV Reset: Years 5 10 Fee: 0.75% of Contract Value, Annually 3 Option 3 I want to maintain my lifestyle when I retire. Issue Age: 50+ IAV Rate: 6.0% Compounding IAV Period: 10 years IAV Reset: Years 2 5 Fee: 0.90% of Contract Value, Annually 3 6

Lifetime Income Benefit Rider Wellbeing Benefit The Wellbeing options are designed to help ease some of the financial burden related to significant health issues, and is calculated the same as the Guaranteed Income options. If you become unable to perform at least two of the six Activities of Daily Living (ADLs), you can currently double the income you receive under the Rider, for up to five years. The six ADLs include bathing, dressing, transferring, toileting, continence and eating. The Wellbeing Benefit is not confinement driven, so you can stay in your home and receive care. There are conditions to this benefit, including a two-year waiting period. Lifetime Income Benefit Rider Indexing Income The Indexing Income option is an available feature of the Lifetime Income Benefit Rider. For this, the IAV is based on the rate-of-return of your Contract from the previous anniversary. The Contract Value rate-ofreturn is multiplied by the IAV Multiplier to determine the IAV credit for the year. The IAV credit is applied to the IAV on each anniversary. If there are no index or fixed interest credits to your Contract Value, your IAV will not increase that year. The Indexing Income has moving components that are declared annually at your Contract Anniversary: Cap or Participation Rate as it applies to your index credit IAV Multiplier- as it applies to your IAV calculation Wellbeing Benefit Option 4 Issue Age: 50+ IAV Rate: 5.5% Compounding IAV Period: 20 years IAV Reset: Years 5 10 Fee: 0.85% of Contract Value, Annually 3 Option 5 Issue Age: 50+ IAV Rate: 6.0% Compounding IAV Period: 10 years IAV Reset: Years 2 5 Fee: 1.00% of Contract Value, Annually 3 Indexing Income Option 6 Issue Age: 50+ IAV Multiplier: Set at issue, guaranteed for first Contract Year. IAV Period 4 : Until the LIB payments are elected IAV Reset: N/A 4 Fee: 0.90% of Contract Value, Annually 3 7

Benefit Payout Percentage Payout Factors* Single Joint Single Joint Payout % Payout % Age Female Male Joint 50 3.10% 3.40% 3.00% 51 3.20% 3.50% 3.10% 52 3.30% 3.60% 3.20% 53 3.40% 3.70% 3.30% 54 3.50% 3.80% 3.40% 55 3.60% 3.90% 3.50% 56 3.70% 4.00% 3.60% 57 3.80% 4.10% 3.70% 58 3.90% 4.20% 3.80% 59 4.00% 4.30% 3.90% 60 4.10% 4.40% 4.00% 61 4.20% 4.50% 4.05% 62 4.30% 4.60% 4.10% 63 4.40% 4.70% 4.15% 64 4.50% 4.80% 4.20% Payout % Payout % Age Female Male Joint 65 4.60% 4.90% 4.25% 66 4.70% 5.00% 4.30% 67 4.80% 5.10% 4.35% 68 4.90% 5.20% 4.45% 69 5.00% 5.30% 4.55% 70 5.10% 5.40% 4.65% 71 5.20% 5.50% 4.75% 72 5.30% 5.60% 4.85% 73 5.40% 5.70% 4.90% 74 5.50% 5.80% 4.95% 75 5.60% 5.90% 5.00% 76 5.70% 6.00% 5.05% 77 5.80% 6.10% 5.10% 78 5.90% 6.20% 5.15% 79 6.00% 6.30% 5.20% 80 6.10% 6.40% 5.25% * Montana residents will be issued on a gender-neutral basis. Both Males and Females will be issued using Female payout factors. Joint factors remain the same. 8

Lifetime Income Benefit Election You may elect to receive LIB payments any time after your first Contract Anniversary or after you reach age 50, whichever is LATER. At the time you choose to begin LIB payments, you may select either the single life or joint life payout option. Once your LIB payments begin, these choices are locked in and may not be changed. Your LIB payments will be based on your selection and the IAV multiplied by the benefit payout percentage. Single Life and Joint Life Payout At the time you elect to start receiving LIB payments, you may choose either a Single Life or a Joint Life payout. With the Single Life option, payout factors are determined based on your age at time of payout election. With the Joint Life payout option, the Joint Payee must be a legal spouse as defined under federal law and be at least 50 years old. We base LIB payment amounts on the age of the younger Joint Payee. We will make LIB payments until the death of the last surviving spouse. My loved ones will be taken care of. 9

Excess Withdrawals Any partial withdrawals taken from the Contract Value after LIB payments have started are considered Excess Withdrawals and will reduce future LIB payment amounts and your IAV on a pro-rata basis. For example an additional withdrawal of 5% of your Contract Value reduces your future LIB payments by 5%. If an Excess Withdrawal plus LIB payment exceeds the Penalty-free Withdrawal amount allowed in any Contract Year, Surrender Charges will be applied to any amount in excess of the Penaltyfree amount. Should Excess Withdrawals reduce your Contract to below the minimum value, as outlined in your Contract, the Rider terminates and your LIB payments stop. Required Minimum Distributions (RMD) The Lifetime Income Benefit Rider is RMD friendly. If the LIB payment does not satisfy the RMD amount in your Contract for that year, then we will increase your payment to meet the required amount. This will not be considered an Excess Withdrawal. 10

Rider Option Comparison The benefits of a Lifetime Income Benefit Rider with Guaranteed Income, Wellbeing Benefit or Indexing Income offer a variety of strengths to your retirement plan. Below is a table highlighting key similarities and differences between these three approaches. Guaranteed Income: 1, 2, 3 Wellbeing Benefit: 4, 5 Indexing Income: 6 Lifelong Income Stream Guaranteed Annual Growth of Income Account Value Higher Growth Opportunities for Income Account Value Additional Income for Specific Health Issues Coverage for Married Couples Terminate Rider at Anytime 11

Death of Owner American Equity s annuities have a Death Benefit that allows your beneficiaries immediate access to the Contract Value at the time of death. This can help avoid a costly and prolonged probate process. The Rider terminates at the death of Owner/Annuitant. The Rider continues if the spouse is the primary beneficiary and meets the following conditions: If the Owner/Annuitant dies before LIB payments begin, the spouse may step into the Contract and the Rider will continue with the Contract; or If LIB payments have already begun, the surviving spouse is eligible to receive: a) The current Contract Value in a lump sum or any other payout option available; or b) The remaining IAV in a series of payments of up to 6% of the IAV based on the spouse s age at date of step-in, until IAV is depleted to zero; or c) May stop LIB payments and choose to restart them later based on the spouse s age at date of restart, up to a maximum of 6% of the remaining IAV annually, until the IAV is zero. Tax Treatment All LIB payments are considered a withdrawal from the Contract Value. Any withdrawal is subject to income taxation as outlined by the Internal Revenue Code. Additionally, the taxable portion of any withdrawal taken prior to age 59½ may be subject to a 10% penalty by the Internal Revenue Service for early withdrawal of deferred interest. Please contact your tax professional for additional information. 12

We Are Here for What s Next At American Equity, we want you to know our products and financial stability are here to help you enjoy the retirement of your choice. We are committed to your retirement years and the security of your savings. We design our products with your future in mind, and our customer service is tailored to assist you in leading the life you have planned. All of our employee-owners are dedicated to ensuring your retirement and peace of mind. I plan to enjoy my retirement. 13

Notes 14

Lifetime Income Benefit Rider Fixed Indexed Annuity Version Disclosure Statement A Lifetime Income Benefit (LIB) option may only be selected if the Owner and Annuitant are the same person, unless the Owner is not a natural person. If the Owner is not a natural person, the Annuitant will be treated as the Owner for calculation purposes of the Rider. Based on the Option you choose, your Income Account Value (IAV) will grow to provide you with a lifetime of income in the future. The IAV is a value used only to calculate your LIB. It is not part of your Contract Value and is not available for partial withdrawal or in a lump sum. You will not have access to the IAV unless you elect the Lifetime Income Benefit. The LIB is available to you without a Surrender Charge and without having to annuitize your Contract. This means that you maintain control of all money accumulated in your Contract and can access that money at any time, with certain restrictions. This Disclosure is a summary of the key benefits and limitations; for more information please see the brochure and your Contract. The choice you make on this disclosure document may not be changed once the Contract is issued. Keep in mind your Contract contains a Free Look Period. How Much Income Can I Get? That depends on several factors, including the premium paid and any applicable Premium bonuses credited, the option you choose, the amount of time the IAV grows, your age at the time payments begin, your gender and the frequency of payment option you choose. Please review your Contract carefully and when the time comes, feel free to contact us to discuss potential payment options and amounts. How is the IAV Calculated? Your initial IAV is your total Premium plus any applicable bonus. For LIB Options 1 through 5, the IAV compounds at the IAV Rate, which is set at issue, and continues to grow until payments begin or the end of the IAV Period, unless you submit a written request to reset. If you choose LIB Option 6, the IAV Multiplier is a factor used to calculate your IAV credits. We declare the IAV Multiplier annually. During the Initial Period, currently 10 years, the IAV Multiplier will not be less than the Minimum IAV Multiplier. After the Initial Period, the IAV Multiplier will not be less than the Minimum IAV Multiplier after the Initial Period. Can the Lifetime Income Benefit Continue Upon My Death? Yes. However, your spouse must be listed as sole primary beneficiary and the Spousal Continuation option must be processed in order to continue the Lifetime Income Benefit. LIB will be recalculated upon Spousal Continuation. Other options available; see Contract for details. Will I be Taxed on Lifetime Income Benefit Payments? Yes. All payments are considered a withdrawal from the Contract Value. Any part of the withdrawal that is deferred interest is taxable as income. If the Contract is a qualified plan, the entire amount of the withdrawal may be taxable. We calculate taxation of LIB payments as outlined in the Internal Revenue Code. The taxable portion of any withdrawal taken before age 59 ½ may be subject to an additional penalty of 10% by the Internal Revenue Service. How Does My LIB Payment Affect My Contract Value? LIB payments are considered Withdrawals from your Contract and reduce the IAV and Contract Value on a dollar for dollar basis. Can I Take Other Withdrawals From My Annuity? Yes. Any withdrawals, penalty-free or otherwise, taken under your Contract before LIB payments begin will reduce the IAV under this Rider on a pro-rata basis. Please note, additional withdrawals after LIB payments begin are considered Excess Withdrawals and will reduce future LIB payment amounts and your IAV on a pro-rata basis. If in any Contract Year an Excess Withdrawal is taken, plus your LIB payments exceed the Penalty-free Withdrawal amount Surrender Charges will apply to any amount withdrawn in excess. Should the Excess Withdrawals reduce the Contract Value to below the minimum values as outlined in your Contract, the Rider will terminate and the LIB payments will stop. Can This Rider be Terminated? Yes. This Rider may be terminated if you submit a written request to cancel the Rider. There are other ways this Rider may terminate, please see your Contract for more details. Please note once terminated you cannot re-elect this Rider. When Can I Begin Taking My Lifetime Income Benefit? You may begin taking your LIB any time after the first Contract Anniversary or at age 50, whichever is later. Can I Choose Single or Joint Payouts? At the time you elect to start LIB payments, you may choose either a Single Life or a Joint Life Payout. The Single Life Payout is based on your age at the time of election. For the Joint Life Payout option, LIB payment amounts are based on the youngest age of you or your spouse (must be at least age 50). For the Joint Life Payout option, we guarantee LIB payments until the death of the Surviving Spouse. 1157-D 0002 Page 1 of 4 03.01.16

Lifetime Income Benefit Rider What Is The Optional Wellbeing Benefit? (Available with Option 4 and 5) A benefit which increases the amount of your LIB payment by the Enhanced LIB Withdrawal Factor (Currently 200% for single life or 150% for joint life) if you or your spouse (if Joint Life Payout selected) meet annually all seven of the eligibility requirements, outlined below: 1. This Rider must be in force; 2. The Enhanced LIB Waiting Period has elapsed (currently two years); 3. You (and your spouse, if applicable) are at least age 50 at election; 4. The current Contract Value is greater than zero; 5. You (or your spouse, if applicable) were able to perform all six Activities of Daily Living (ADL s) on the Effective Date of the Rider; 6. The Enhanced LIB has not been previously elected; 7. You (or your spouse, if applicable) provide a licensed doctor s statement, on a form we provide, certifying that you (or your spouse) are now no longer able to perform two of the six ADL s without substantial assistance due to a permanent loss of functional capacity. The six ADL s include bathing, dressing, transferring, toileting, continence and eating. Your LIB payment will be increased for the duration of the Enhanced LIB Period (currently 5 years). The Enhanced LIB Period will elapse and no further Enhanced LIB will be payable after the expiration of the Enhanced LIB Period. What is the Indexing Income Option? (Available with Option 6) For this option, the IAV is based on the rate-of-return of your Contract from the previous anniversary. The Contract Value rate-of-return is multiplied by the IAV Multiplier to determine the IAV credit for the year. The IAV credit is applied to the IAV on each anniversary. If there are no index or fixed interest credits to your Contract Value, your IAV will not increase that year. Authorization And Acknowledgement Of Lifetime Income Benefit And Accumulation/Benefit Option Choice I understand that this Rider provides a Lifetime Income option. I understand that I may choose one of the following options depending on my age at issue. I understand the choice I make on this disclosure document may not be changed once the Contract is issued. Choose One Option Only q Option 1: Lifetime Income Benefit Rider 1 Available to all issue ages By choosing this option I understand that: My IAV Rate is 3.0% compounding My IAV Period is 10 years If Reset, my IAV could grow for up to 20 years There is no Rider Fee associated with this Option at the time of issue If I choose to reset my IAV Period, as allowed under this Rider, the Company may at that time implement a Rider Fee and: The Rider Fee will be declared by the Company at reset of my IAV period The Rider Fee will be deducted annually from my Contract Value on each Contract Anniversary as long as the Rider is in force; and The Rider Fee will never be more than the Maximum Rider Fee (currently 2%) (Owner s Initials) q Option 2: Lifetime Income Benefit Rider 1 Available issue age 50+ By choosing this option I understand that: My IAV Rate is 5.5% compounding My IAV Period is 10 years If Reset, my IAV could grow for up to 20 years I will incur a Rider Fee of 0.75% of my Contract Value which will be deducted on each Contract Anniversary as long as the Rider is in force, unless I choose to reset my IAV Period If I choose to reset my IAV Period, as allowed under the Rider, the Company may change the Rider Fee, and: The Company will declare the new Rider Fee at the reset of my IAV Period; and The Rider Fee will never be more than the Maximum Rider Fee (currently 2%) (Owner s Initials) q Option 3: Lifetime Income Benefit Rider 1 Available issue age 50+ By choosing this option I understand that: My IAV Rate is 6.0% compounding My IAV Period is 5 years If Reset, my IAV could grow for up to 10 years I will incur a Rider Fee of 0.90% of my Contract Value which will be deducted on each Contract Anniversary as long as the Rider is in force, unless I choose to reset my IAV Period If I choose to reset my IAV Period, as allowed under the Rider, the Company may change the Rider Fee, and: The Company will declare the new Rider Fee at the reset of my IAV Period; and The Rider Fee will never be more than the Maximum Rider Fee (currently 2%) (Owner s Initials) (See Page 3 for additional options) SEE YOUR CONTRACT FOR CURRENT INTEREST RATES, CAPS, AND ASSET FEE RATES. - NOT COMPLETE WITHOUT ALL PAGES. 1157-D 0002 Page 2 of 4 03.01.16

Lifetime Income Benefit Rider q Option 4: Lifetime Income Benefit & Wellbeing Rider 1 Available issue age 50+ By choosing this option I understand that: My IAV Rate is 5.5% compounding My IAV Period is 10 years If Reset, my IAV could grow for up to 20 years The Wellbeing Benefit can only be activated one time I am (or my spouse is) able to perform all six ADL s as of the day this form was signed I will incur a Rider Fee of 0.85% of my Contract Value which will be deducted on each Contract Anniversary as long as the Rider is in force, unless I choose to reset my IAV Period If I choose to reset my IAV Period, as allowed under the Rider, the Company may change the Rider Fee, and: The Company will declare the new Rider Fee at the reset of my IAV Period; and The Rider Fee will never be more than the Maximum Rider Fee (currently 3%) (Owner s Initials) q Option 5: Lifetime Income Benefit & Wellbeing Rider 1 Available issue age 50+ By choosing this option I understand that: My IAV Rate is 6.0% compounding My IAV Period is 5 years If Reset, my IAV could grow for up to 10 years The Wellbeing Benefit can only be activated one time I am (or my spouse is) able to perform all six ADL s as of the day this form was signed I will incur a Rider Fee of 1.0% of my Contract Value which will be deducted on each Contract Anniversary as long as the Rider is in force, unless I choose to reset my IAV Period If I choose to reset my IAV Period, as allowed under the Rider, the Company may change the Rider Fee; and: The Company will declare the new Rider Fee at the time of reset of my IAV Period; and The Rider Fee will never be more than the Maximum Rider Fee (currently 3%). (Owner s Initials) I (we) have read the information, and understand its content. By signing, I (we) acknowledge and understand the following: In choosing a Lifetime Income Benefit Option, as described above, I (we) have discussed my (our) financial status, tax status, current insurance products, and other information with my (our) agent and any other appropriate parties, and believe the Lifetime Income Benefit Option chosen may assist in meeting my (our) current financial needs and objectives. I (we) understand any values referred to in this and other documents, other than minimum guaranteed values and the contractual Income Account Values, are not guaranteed and are subject to change. I (we) understand the IAV is simply a calculation method to arrive at what LIB payments will be. I (we) will not have access to the IAV unless I (we) access the Lifetime Income Benefit. Further, I (we) understand the IAV is not available as a partial withdrawal or in a lump sum. Owner s Signature Joint Owner s Signature Agent s Signature Agent s State License Number Date Date Date q Option 6: Lifetime Income Benefit with Indexing Income 1 Available issue age 50+ Riders issued under form series ICC14 R-LIBR, 14 R-LIBR-W, ICC16 R-LIBR-IDX and By choosing this option I understand that: state variations thereof. Availability may vary by product and state. Ask agent for The IAV Multiplier is set at issue and guaranteed for the details. Montana residents will be issued on a gender neutral basis. first year The IAV Multiplier is declared annually but will never go below 100% during the Initial Period My initial IAV Period is 10 years The minimum IAV Multiplier after the Initial Period is 50% and is guaranteed for the remainder of the contract. The IAV will continue to grow beyond the Initial Period until the LIB payments are elected I will incur a Rider Fee of 0.90% of my Contract Value American Equity Investment which will be deducted on each Contract Anniversary as Life Insurance Company long as the Rider is in force 6000 Westown Parkway The Rider Fee is guaranteed for the life of the Rider West Des Moines, Iowa 50266 There is not a reset provision with this option life.american-equity.com (Owner s Initials) 888-221-1234 SEE YOUR CONTRACT FOR CURRENT INTEREST RATES, CAPS, AND ASSET FEE RATES. - NOT COMPLETE WITHOUT ALL PAGES. 1157-D 0002 Page 3 of 4 03.01.16

[page intentionally left blank] SEE YOUR CONTRACT FOR CURRENT INTEREST RATES, CAPS, AND ASSET FEE RATES. - NOT COMPLETE WITHOUT ALL PAGES. 1157-D 0002 Page 4 of 4 03.01.16

Lifetime Income Benefit Rider Fixed Indexed Annuity Version Disclosure Statement A Lifetime Income Benefit (LIB) option may only be selected if the Owner and Annuitant are the same person, unless the Owner is not a natural person. If the Owner is not a natural person, the Annuitant will be treated as the Owner for calculation purposes of the Rider. Based on the Option you choose, your Income Account Value (IAV) will grow to provide you with a lifetime of income in the future. The IAV is a value used only to calculate your LIB. It is not part of your Contract Value and is not available for partial withdrawal or in a lump sum. You will not have access to the IAV unless you elect the Lifetime Income Benefit. The LIB is available to you without a Surrender Charge and without having to annuitize your Contract. This means that you maintain control of all money accumulated in your Contract and can access that money at any time, with certain restrictions. This Disclosure is a summary of the key benefits and limitations; for more information please see the brochure and your Contract. The choice you make on this disclosure document may not be changed once the Contract is issued. Keep in mind your Contract contains a Free Look Period. How Much Income Can I Get? That depends on several factors, including the premium paid and any applicable Premium bonuses credited, the option you choose, the amount of time the IAV grows, your age at the time payments begin, your gender and the frequency of payment option you choose. Please review your Contract carefully and when the time comes, feel free to contact us to discuss potential payment options and amounts. How is the IAV Calculated? Your initial IAV is your total Premium plus any applicable bonus. For LIB Options 1 through 5, the IAV compounds at the IAV Rate, which is set at issue, and continues to grow until payments begin or the end of the IAV Period, unless you submit a written request to reset. If you choose LIB Option 6, the IAV Multiplier is a factor used to calculate your IAV credits. We declare the IAV Multiplier annually. During the Initial Period, currently 10 years, the IAV Multiplier will not be less than the Minimum IAV Multiplier. After the Initial Period, the IAV Multiplier will not be less than the Minimum IAV Multiplier after the Initial Period. Can the Lifetime Income Benefit Continue Upon My Death? Yes. However, your spouse must be listed as sole primary beneficiary and the Spousal Continuation option must be processed in order to continue the Lifetime Income Benefit. LIB will be recalculated upon Spousal Continuation. Other options available; see Contract for details. Will I be Taxed on Lifetime Income Benefit Payments? Yes. All payments are considered a withdrawal from the Contract Value. Any part of the withdrawal that is deferred interest is taxable as income. If the Contract is a qualified plan, the entire amount of the withdrawal may be taxable. We calculate taxation of LIB payments as outlined in the Internal Revenue Code. The taxable portion of any withdrawal taken before age 59 ½ may be subject to an additional penalty of 10% by the Internal Revenue Service. How Does My LIB Payment Affect My Contract Value? LIB payments are considered Withdrawals from your Contract and reduce the IAV and Contract Value on a dollar for dollar basis. Can I Take Other Withdrawals From My Annuity? Yes. Any withdrawals, penalty-free or otherwise, taken under your Contract before LIB payments begin will reduce the IAV under this Rider on a pro-rata basis. Please note, additional withdrawals after LIB payments begin are considered Excess Withdrawals and will reduce future LIB payment amounts and your IAV on a pro-rata basis. If in any Contract Year an Excess Withdrawal is taken, plus your LIB payments exceed the Penalty-free Withdrawal amount Surrender Charges will apply to any amount withdrawn in excess. Should the Excess Withdrawals reduce the Contract Value to below the minimum values as outlined in your Contract, the Rider will terminate and the LIB payments will stop. Can This Rider be Terminated? Yes. This Rider may be terminated if you submit a written request to cancel the Rider. There are other ways this Rider may terminate, please see your Contract for more details. Please note once terminated you cannot re-elect this Rider. When Can I Begin Taking My Lifetime Income Benefit? You may begin taking your LIB any time after the first Contract Anniversary or at age 50, whichever is later. Can I Choose Single or Joint Payouts? At the time you elect to start LIB payments, you may choose either a Single Life or a Joint Life Payout. The Single Life Payout is based on your age at the time of election. For the Joint Life Payout option, LIB payment amounts are based on the youngest age of you or your spouse (must be at least age 50). For the Joint Life Payout option, we guarantee LIB payments until the death of the Surviving Spouse. HOME OFFICE COPY - PLEASE DETACH, SIGN, AND RETURN TO ADDRESS ON BACK - NOT COMPLETE WITHOUT ALL PAGES. 1157-D 0002 Page 1 of 4 03.01.16

Lifetime Income Benefit Rider What Is The Optional Wellbeing Benefit? (Available with Option 4 and 5) A benefit which increases the amount of your LIB payment by the Enhanced LIB Withdrawal Factor (Currently 200% for single life or 150% for joint life) if you or your spouse (if Joint Life Payout selected) meet annually all seven of the eligibility requirements, outlined below: 1. This Rider must be in force; 2. The Enhanced LIB Waiting Period has elapsed (currently two years); 3. You (and your spouse, if applicable) are at least age 50 at election; 4. The current Contract Value is greater than zero; 5. You (or your spouse, if applicable) were able to perform all six Activities of Daily Living (ADL s) on the Effective Date of the Rider; 6. The Enhanced LIB has not been previously elected; 7. You (or your spouse, if applicable) provide a licensed doctor s statement, on a form we provide, certifying that you (or your spouse) are now no longer able to perform two of the six ADL s without substantial assistance due to a permanent loss of functional capacity. The six ADL s include bathing, dressing, transferring, toileting, continence and eating. Your LIB payment will be increased for the duration of the Enhanced LIB Period (currently 5 years). The Enhanced LIB Period will elapse and no further Enhanced LIB will be payable after the expiration of the Enhanced LIB Period. What is the Indexing Income Option? (Available with Option 6) For this option, the IAV is based on the rate-of-return of your Contract from the previous anniversary. The Contract Value rate-of-return is multiplied by the IAV Multiplier to determine the IAV credit for the year. The IAV credit is applied to the IAV on each anniversary. If there are no index or fixed interest credits to your Contract Value, your IAV will not increase that year. Authorization And Acknowledgement Of Lifetime Income Benefit And Accumulation/Benefit Option Choice I understand that this Rider provides a Lifetime Income option. I understand that I may choose one of the following options depending on my age at issue. I understand the choice I make on this disclosure document may not be changed once the Contract is issued. Choose One Option Only q Option 1: Lifetime Income Benefit Rider 1 Available to all issue ages By choosing this option I understand that: My IAV Rate is 3.0% compounding My IAV Period is 10 years If Reset, my IAV could grow for up to 20 years There is no Rider Fee associated with this Option at the time of issue If I choose to reset my IAV Period, as allowed under this Rider, the Company may at that time implement a Rider Fee and: The Rider Fee will be declared by the Company at reset of my IAV period The Rider Fee will be deducted annually from my Contract Value on each Contract Anniversary as long as the Rider is in force; and The Rider Fee will never be more than the Maximum Rider Fee (currently 2%) (Owner s Initials) q Option 2: Lifetime Income Benefit Rider 1 Available issue age 50+ By choosing this option I understand that: My IAV Rate is 5.5% compounding My IAV Period is 10 years If Reset, my IAV could grow for up to 20 years I will incur a Rider Fee of 0.75% of my Contract Value which will be deducted on each Contract Anniversary as long as the Rider is in force, unless I choose to reset my IAV Period If I choose to reset my IAV Period, as allowed under the Rider, the Company may change the Rider Fee, and: The Company will declare the new Rider Fee at the reset of my IAV Period; and The Rider Fee will never be more than the Maximum Rider Fee (currently 2%) (Owner s Initials) q Option 3: Lifetime Income Benefit Rider 1 Available issue age 50+ By choosing this option I understand that: My IAV Rate is 6.0% compounding My IAV Period is 5 years If Reset, my IAV could grow for up to 10 years I will incur a Rider Fee of 0.90% of my Contract Value which will be deducted on each Contract Anniversary as long as the Rider is in force, unless I choose to reset my IAV Period If I choose to reset my IAV Period, as allowed under the Rider, the Company may change the Rider Fee, and: The Company will declare the new Rider Fee at the reset of my IAV Period; and The Rider Fee will never be more than the Maximum Rider Fee (currently 2%) (Owner s Initials) (See Page 3 for additional options) SEE YOUR CONTRACT FOR CURRENT INTEREST RATES, CAPS, AND ASSET FEE RATES. - NOT COMPLETE WITHOUT ALL PAGES. 1157-D 0002 Page 2 of 4 03.01.16

Lifetime Income Benefit Rider q Option 4: Lifetime Income Benefit & Wellbeing Rider 1 Available issue age 50+ By choosing this option I understand that: My IAV Rate is 5.5% compounding My IAV Period is 10 years If Reset, my IAV could grow for up to 20 years The Wellbeing Benefit can only be activated one time I am (or my spouse is) able to perform all six ADL s as of the day this form was signed I will incur a Rider Fee of 0.85% of my Contract Value which will be deducted on each Contract Anniversary as long as the Rider is in force, unless I choose to reset my IAV Period If I choose to reset my IAV Period, as allowed under the Rider, the Company may change the Rider Fee, and: The Company will declare the new Rider Fee at the reset of my IAV Period; and The Rider Fee will never be more than the Maximum Rider Fee (currently 3%) (Owner s Initials) q Option 5: Lifetime Income Benefit & Wellbeing Rider 1 Available issue age 50+ By choosing this option I understand that: My IAV Rate is 6.0% compounding My IAV Period is 5 years If Reset, my IAV could grow for up to 10 years The Wellbeing Benefit can only be activated one time I am (or my spouse is) able to perform all six ADL s as of the day this form was signed I will incur a Rider Fee of 1.0% of my Contract Value which will be deducted on each Contract Anniversary as long as the Rider is in force, unless I choose to reset my IAV Period If I choose to reset my IAV Period, as allowed under the Rider, the Company may change the Rider Fee; and: The Company will declare the new Rider Fee at the time of reset of my IAV Period; and The Rider Fee will never be more than the Maximum Rider Fee (currently 3%). (Owner s Initials) I (we) have read the information, and understand its content. By signing, I (we) acknowledge and understand the following: In choosing a Lifetime Income Benefit Option, as described above, I (we) have discussed my (our) financial status, tax status, current insurance products, and other information with my (our) agent and any other appropriate parties, and believe the Lifetime Income Benefit Option chosen may assist in meeting my (our) current financial needs and objectives. I (we) understand any values referred to in this and other documents, other than minimum guaranteed values and the contractual Income Account Values, are not guaranteed and are subject to change. I (we) understand the IAV is simply a calculation method to arrive at what LIB payments will be. I (we) will not have access to the IAV unless I (we) access the Lifetime Income Benefit. Further, I (we) understand the IAV is not available as a partial withdrawal or in a lump sum. Owner s Signature Joint Owner s Signature Agent s Signature Agent s State License Number Date Date Date q Option 6: Lifetime Income Benefit with Indexing Income 1 Available issue age 50+ Riders issued under form series ICC14 R-LIBR, 14 R-LIBR-W, ICC16 R-LIBR-IDX and By choosing this option I understand that: state variations thereof. Availability may vary by product and state. Ask agent for The IAV Multiplier is set at issue and guaranteed for the details. Montana residents will be issued on a gender neutral basis. first year The IAV Multiplier is declared annually but will never go below 100% during the Initial Period My initial IAV Period is 10 years The minimum IAV Multiplier after the Initial Period is 50% and is guaranteed for the remainder of the contract. The IAV will continue to grow beyond the Initial Period until the LIB payments are elected I will incur a Rider Fee of 0.90% of my Contract Value American Equity Investment which will be deducted on each Contract Anniversary as Life Insurance Company long as the Rider is in force 6000 Westown Parkway The Rider Fee is guaranteed for the life of the Rider West Des Moines, Iowa 50266 There is not a reset provision with this option life.american-equity.com (Owner s Initials) 888-221-1234 SEE YOUR CONTRACT FOR CURRENT INTEREST RATES, CAPS, AND ASSET FEE RATES. - NOT COMPLETE WITHOUT ALL PAGES. 1157-D 0002 Page 3 of 4 03.01.16

[page intentionally left blank] SEE YOUR CONTRACT FOR CURRENT INTEREST RATES, CAPS, AND ASSET FEE RATES. - NOT COMPLETE WITHOUT ALL PAGES. 1157-D 0002 Page 4 of 4 03.01.16

Riders issued under form series ICC14 R-LIBR, 14 R-LIBR-W, ICC16 R-LIBR-IDX and state variations thereof. Availability may vary by product and state. Ask agent for details. 1 A.M. Best has assigned American Equity an A- (Excellent) rating, reflecting their current opinion of the financial strength and operating performance of American Equity relative to the norms of the life/health insurance industry. A.M. Best utilizes 15 rating categories ranging from A++ to F. An A- rating from A.M. Best is its fourth highest rating. For the latest rating, access www.ambest.com. Standard and Poor s rating service has recognized American Equity Investment Life Insurance Company with an A- rating. An insurer rated A has strong financial security characteristics, but is somewhat more likely to be affected by adverse business conditions than are insurers with higher ratings. Ratings from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. Rating effective 8/5/15. 2 Source: http://www.looktowink.com/2015/03/indexedannuityalltimesales/ 3 The Rider Fee will continue to be taken against the Contract Value as long as the contract is in force or until the rider terminates. 4 The Initial IAV Period is 10 years and during that period the minimum IAV Multiplier is 100%. After the Initial IAV Period, the minimum IAV Multiplier is 50% until LIB payments are elected. This document is prepared to provide general information only. It is not intended or written to be used to avoid tax penalties or promote, market or recommend any tax plan or arrangement. Neither American Equity Investment Life Insurance Company, nor any of our agents give legal, tax, or investment advice. Consult your own personal advisor for these matters. 15

AMERICAN EQUITY Our Promise When you purchase an American Equity annuity you are buying a promise we guarantee we will be here when you need us and your money will be there when you want it. We are the one who works for you. life.american-equity.com Call us at 888-221-1234 6000 Westown Pkwy, West Des Moines, IA 50266 1157-SB 03.01.16 2016 American Equity. All Rights Reserved.