Introduction
Fixed Indexed Annuities are contracts between the annuitant and an insurance company in which the insurance company promises to credit interest based on the performance of a certain stock market index, such as the S&P 500. Fixed Indexed Annuities have an inbuilt capital protection feature, so your principal will remain safe even if the index goes down.
Annuities are complex products, and many advisors try to mis-sell them without properly understanding the buyer’s needs. Thus, you must educate yourself on these products and not solely depend upon the annuity agent’s high-pressure sales pitch.
This article discusses an in-depth review of the Athene Protector Fixed Indexed Annuity. Athene Protector is a deferred, fixed-indexed annuity that may be a suitable option if you are seeking accumulation, favorable indexing options, a return of premium upon surrender, and the ability to leave a legacy. After extensive research and due diligence, I present an in-depth and unbiased analysis of this plan.
The review of the Athene Protector Fixed Indexed Annuity will be broken into multiple subcategories:
- Product Description
- Product Policy
- Rates and Costs
- Accessing your Money
- Riders
- What Makes This Product Stand Out?
- What I Don’t Like
- Company Details
- Conclusion
Product Description
The Athene Protector is a Fixed Indexed Annuity (FIA) plan that offers the annuitant (annuity investor) the opportunity to earn a portion of a market index-linked return without incurring the risk of market downside. This is a suitable plan for people who want to accumulate a corpus for retirement and aim to grow and protect their retirement savings. This plan is also suitable for individuals who want protection from unpredictable circumstances and the option to surrender their annuity at any time during the withdrawal charge period, receiving their entire initial purchase premium.
Let’s have a look at the high-level fine print of the Athene Protector Fixed Indexed Annuity, and then we will discuss each point in detail.
| Product Name | Protector |
|---|---|
Issuing Company | |
AM Best Rating | A+ (2nd of 13 ratings) |
Withdrawal Charge Period(s) | 5 and 7 years |
Maximum Issue Age | 5-year withdrawal charge - 85 years 7-year withdrawal charge - 83 years |
Minimum Initial Purchase Amount | $10,000 ($5,000 in some states) |
Surrender Charge Schedule | 5-year - 8%, 8%, 7%, 5.9%, 4.6%, 0% 7-year - 8%, 8%, 7%, 6%, 5%, 3.9%, 2.7%, 0% |
Crediting Period and Strategies |
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Plan Types |
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Indexes |
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Free Withdrawals | 10% of the annuity’s Accumulated Value; per year. |
Death Benefit | Upon the annuitant’s death, the beneficiary can choose from (i) Accumulated Value (Lumpsum) (ii) Minimum Guaranteed Contract Value, or (iii) Return of Premium Benefit
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Riders | Optional Riders for a charge:
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Surrender Value | Greater of:
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The Athene Protector Fixed Indexed Annuity is almost identical for both policy tenures, except for the crediting strategies and surrender charge schedule. For ease of discussion and better clarity, we will discuss the Athene Protector 7 (unless mentioned otherwise) Fixed Indexed Annuity for the rest of the article.
Product Policy
How does the Athene Protector Fixed Indexed Annuity policy work?
An annuitant (maximum age at the time of policy issue: 85) can purchase the Athene Protector Fixed Indexed Annuity with a minimum initial purchase amount of $10,000, and in return, they will earn market index returns (calculated through a formula that we will discuss shortly), credited as per the chosen crediting period. Apart from the regular crediting period, there are various events that may trigger earnings credit: On free withdrawals, for a long-term care event or terminal illness or injury event, or when a death benefit is payable.
The Athene Protector Fixed Indexed Annuity offers the annuitant the ability to choose crediting strategies tied to one or more of the four indexes to determine their earnings credit. The S&P 500 index has four indexing strategies, while the other three indices each have one strategy. In addition, there’s also a fixed-rate guaranteed interest strategy to choose from (making a total of 8 strategy options). We will discuss each available index briefly:
The S&P 500 index is one of the most popular and oldest indexes in the world. It tracks 500 large-cap publicly traded stocks listed in the United States. It is a reliable index and has often succeeded in the test of time.
It is very important to note that the Athene Protector Fixed Indexed Annuity offers the S&P 500 index with caps in place, meaning that your interest-earning capacity is capped. However, it is worth noting that the cap rate that Athene is currently offering is very decent when compared to other annuity providers. These rates change frequently; I will discuss the rates in detail shortly.
2. S&P 500 FC Index
The annuity also offers the S&P 500 FC index. It is important to know that, unlike the regular S&P 500 Index, the S&P 500 FC Index applies a volatility control mechanism, because of which the range of both the positive and negative performance of the index is limited. So, keep in mind that both these indices function differently, and thus, the S&P 500 FC Index’s return will be mostly lower than that of the S&P 500.
3. BNP Paribas Multi Asset Diversified 5 Index
The BNP Paribas Multi Asset Diversified 5 Index is a rules-based index that seeks to measure the performance of a diverse range of asset classes comprised of eight components (three equity futures indexes, three bond futures indexes, and two commodities indexes. On a daily basis, the BNPP MAD 5 Index dynamically rebalances the weightings of the components according to a proprietary methodology that seeks to identify weights for the components that would have resulted in the Hypothetical Portfolio with the highest past returns.
4. NASDAQ Fast Convergence Index
The NASDAQ Fast Convergence Index is powered by BofA (Bank of America) and uses a proprietary technology that aims to reduce risk and increase performance by adapting faster to changing market conditions. It has a 107.95% exposure in the NASDAQ 100 TR Index (which contains 100 of the most prominent large-cap stocks). It is important to know that this index employs a performance control mechanism wherein a portion of the returns of the Nasdaq FC Index is capped at 4% for the preceding one-month period. The NASDAQ FC Index was created in January 2020 and targets a 12.5% annualized realized volatility.
You will notice that besides the S&P 500 index, all the indexes apply a volatility control mechanism, which limits the range of both the positive and negative performance of the index. However, to make up for this, the company offers a higher participation rate on some of these indices.
Note: In addition to allocating the funds in the following indexes, the annuitant also has the option to allocate funds at a fixed interest. These Fixed Rates tend to change from time to time. The Fixed Value Rate at the time of writing this article was 4.55%.
Rates and Costs
The earnings crediting formula
The earnings crediting formula is the most important part of this annuity discussion. It is important to note that we don’t simply get the index return credited to our annuity. There are a few rate-limiting mechanisms (in the form of participation rates and caps) that the company has in place that affect our earnings. These rates are subject to change over time, and the updated rates can be checked on the company’s website.
The formula to calculate the earnings credited is:
- For Strategies with Participation: (Participation Rate % * Index Return)
- For Strategies with Caps: Index return over a given crediting period, with a maximum potential of earning the cap rate
Let's take a closer look at the Athene Protector rate sheet to understand how earnings are calculated. Please note that these rates are current as of the time this article was edited (October 2025) and apply only to the Athene Protector 7 FIA. For the most accurate and up-to-date rates, you may contact your trusted financial advisor or visit the company's website.
The first thing to note is that we have four indices. The S&P 500 has a 4 strategies. Besides the S&P 500, all other 3 indexes has a 1 strategy each. Additionally, we have a fixed rate strategy to choose from. All in, we get to choose from a total of eight strategies (seven index-based and one fixed). The company displays three types of crediting strategies across these rates (Participation, Cap, and Fixed). The Participation rate (index allocation rate) and the strategy caps are the most important.
Let’s quickly go through the terminologies described by Athene:
- Participation Rate (PR): The participation rate describes the annuitant’s participation percentage in a return of an index. For example, suppose the participation rate is 60%, and the index returned 10% over the agreed time. In that case, the annuitant will be eligible for only 60% of the return, i.e., 6%.
- Cap Rates: This refers to the rate at which your interest-earning capacity is capped. For example, if an index returns 12% but the contract’s cap rate is 6%, the annuitant will be eligible for an interest credit of 6% only. It doesn’t matter how much the index goes above the cap rate; the maximum interest that can be earned is the cap rate.
- Bailout Feature: If Athene lowers the declared 1-year point-to-point index strategy annual cap rate below the Bailout Cap rate, you’ll have full access to your annuity’s accumulated value - free of any charges - for up to 30 days after the contract anniversary in which the Bailout Cap Rate was pierced. After the 30-day Bailout window, all withdrawal charges and MVA will apply.
- Trigger Rate: A trigger rate is a crediting method used in certain fixed indexed annuities (FIAs) that offers a straightforward way to earn interest based on market performance. With this strategy, if the linked market index (such as the S&P 500) experiences a flat or positive return (even a 0% return) over a specified period, typically one year, you receive a predetermined fixed interest rate, known as the trigger rate. If the index return is negative, no interest is credited for that period, but importantly, your principal remains protected; you won't lose any of your initial investment or previously credited interest.
- Fixed Account Rate: If you opt for a fixed account rate, you simply earn the fixed rate for a particular period specified by the company before your policy begins. These rates usually tend to be very low compared to other fixed avenues, such as CDs and MYGAs, so you should avoid fixed rates in a general scenario. The 1-year fixed rate on this policy at the time of writing this article was 4.55%.
- Guaranteed Minimum Interest Credit Feature: If the total interest credited to your annuity’s Accumulated Value is less than the Minimum Interest Credit at the end of your Withdrawal Charge period, you will automatically receive a one-time interest credit equal to the difference. The Minimum Interest Credit is based on a percentage of your Initial Premium minus withdrawals. At the time of writing this article, the guaranteed minimum interest rate was 27%, meaning that at the end of the withdrawal charge period (7 years in this example), if your annuity didn’t earn 27% of the initial premium paid (assuming no withdrawals), you would receive a one-time interest credit equal to the difference. This feature comes at an annual cost of 0.20% of the contract value.
Out of all these indexes, I prefer the S&P 500 index and the BNP Paribas Multi Asset Diversified 5 Index the most. The S&P 500, due to its global importance, higher transparency, and relatively higher capitalization rate, and BNP MAD5, due to its decent real performance and relatively high index allocation rate (participation rate) offered by the company.
Accessing your Money
Each year, you are allowed a 10% free withdrawal of your contract value without incurring charges, fees, or penalties.
Should your needs change unexpectedly and you need to take an excess withdrawal (a withdrawal that exceeds the free withdrawal amount available in a given contract year), you may be entitled to access additional funds, although certain charges and penalties may apply. Any amount withdrawn in excess of the remaining free withdrawal amount is subject to a Surrender Charge. Below is the Surrender Charge schedule for the Athene Protector Fixed Indexed Annuity.
| Completed Contract Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8+ |
|---|---|---|---|---|---|---|---|---|
7-year withdrawal charge | 8% | 8% | 7% | 6% | 5% | 3.9% | 2.7% | 0% |
5-year withdrawal charge | 8% | 8% | 7% | 5.9% | 4.6% | 0% |
In case you need to surrender your policy, a Market Value Adjustment (MVA) will be applied to the portion of the withdrawal or surrender that exceeds the free withdrawal amount during the withdrawal charge period.
The surrender charge schedule is different for the different tenures of annuities. For a quick comparison of surrender charges across different Athene products, visit their fixed-indexed annuities product page.
The surrender charge of Athene Protector Fixed Indexed Annuity is in line with all the other annuity issuers.
Once the surrender charge period ends, you can typically access your full contract value without fees. However, any withdrawal reduces both your contract value and, if applicable, the income base tied to optional riders, which may impact future guaranteed income.
An annuitant can also convert the contract into a stream of guaranteed income, known as annuitization. They can choose from various payout options designed to meet different needs.
Life Only – Provides income for as long as you live.
Joint and Survivor Life – Continues payments over two lifetimes, often used by couples.
Life with Period Certain (up to 30 years) – Pays income for life, but guarantees payments for a minimum period even if death occurs earlier.
Period Certain (up to 30 years) – Provides guaranteed payments for a set number of years, regardless of lifespan.
Single Life or Joint Life with Cash Refund – Ensures that if the annuitant(s) pass away before receiving payments equal to the original premium, the difference is refunded to beneficiaries.
Single Life or Joint Life with Installment Refund – Similar to the cash refund, but any remaining balance is paid out over time in installments.
These options allow flexibility in balancing lifetime income needs with legacy goals, offering a way to customize how and when funds are accessed in retirement.
Death Benefit
Upon the annuitant’s death, the beneficiary can choose from (i) Accumulated Value (Lumpsum) (ii) Minimum Guaranteed Contract Value, or (iii) Return of Premium Benefit
Riders
The return of premium with a minimum interest credit rider is a key feature of the Athene Protector Fixed Indexed Annuity. The Athene Protector Fixed Indexed Annuity comes with a built-in paid return of premium rider that allows the annuitant to get protection from unpredictable circumstances. It gives the annuitant an option to surrender their annuity at any time during the withdrawal charge period and receive their entire initial purchase premium. This rider is useful if you anticipate surrendering your policy during the withdrawal charge period and do not want to incur Market Value Adjustments on your surrender value.
Rider Cost: For the built-in return of the premium rider, a charge of 0.40% is deducted annually
Is this the ideal rider for you? This is a mandatory rider costing 0.40% of your annuity's value annually. Although the expense isn't excessive, its utility may be limited. It can only be exercised during the withdrawal charge period, which is either 5 or 7 years for this annuity. Individuals who anticipate needing to surrender their annuity within that timeframe typically should not opt for an annuity to begin with. Even if unforeseen circumstances arise that necessitate an early surrender, one can proceed according to the regular contract terms. Specifically, the surrender value for a standard Athene annuity is the greater of: (i) the Accumulated Value (minus any withdrawal charges or Market Value Adjustments) or (ii) the Minimum Guaranteed Contract Value.
Also, as with most annuities, the Protector FIA has free in-built confinement and terminal illness waivers.
- Confinement Waiver: After the first contract year, an annuitant can withdraw up to 100% of the contract’s accumulated value if he is confined to a Qualified care facility for at least 60 consecutive days. No withdrawal charge or MVA applies if the owner qualifies for this benefit. Diagnosis must occur after the contract is issued, and written proof with supporting documentation is required from a qualified physician.
- Terminal Illness Waiver: After the first contract year, an annuitant can withdraw up to 100% of the contract’s accumulated value if he is diagnosed with a terminal illness with a prognosis of 12 months or less. No withdrawal charge or MVA applies if the owner qualifies for this benefit. Diagnosis must occur after the contract is issued, and written proof with supporting documentation is required from a qualified physician.
Contract/Administrative Charge
The Athene Protector Fixed Indexed Annuity levies no annual contract or administrative fees
What Makes this Product Stand Out?
Some of the features that I like about the Athene Protector Fixed Indexed Annuity are:
- Higher Caps on the S&P 500 Index - Compared to other similar annuities, Athene offers a higher cap on the S&P 500 Index.
- Minimum Interest Credit - Your Accumulated Value is safeguarded against any market downturns. The Minimum Interest Credit feature enhances this guarantee. If the total interest credited to your Accumulated Value is below the Minimum Interest Credit at the end of your withdrawal charge period, the difference will automatically be added as a one-time interest credit. This credit is calculated as a percentage of your Initial Premium after accounting for withdrawals and charges.
- Multiple Lifetime Withdrawal Options
- Free Confinement and Terminal Illness Waiver
What I Don’t Like
The only popular index that this plan offers is the S&P 500. All other indexes are volatility-controlled indexes, which limit the upside potential of returns.
While this annuity plan is decent, most annuitants would not need the “return of premium” feature that comes attached to this annuity at an extra cost. This feature only appeals to a very limited number of annuitants who want to be completely safeguarded against any unpredictable circumstances.
Company Details
You must always keep in mind that, unlike CDs, annuities are not guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other federal insurance agency. An annuity's "guarantee" is only as strong as the insurance company that issues the annuity, so it is always important to assess the issuing company before buying an annuity.
Athene Annuity and Life Company
Athene Annuity and Life Company have been in the business since 2009. It has been one of the largest providers of fixed and fixed indexed annuities in the US for many years and has been regularly in the top ten Fixed Indexed Annuity Sales.
It is rated as follows by the rating agencies:
| Rating Agency | Rating |
|---|---|
AM Best | A+ (2nd of 13 ratings) |
Fitch | A+ (5th of 19 ratings) |
S&P | A+ (5th of 21 ratings) |
Moody's | A1 (5th of 21 ratings) |
Athene Annuity and Life Company has maintained decent ratings for many years. It is considered to be financially strong and stable. As of December 31, 2024, some of the financial highlights for Athene Annuity include its:
- $71 billion in gross organic inflows
- $62 billion of regulatory capital
- $31 billion in spread relating earnings
- $3.2 billion in spread relating earnings
- $327 billion in total assets
Thus, based on the operating history and financial numbers, we can confidently conclude that you can trust your savings with Athene Annuity and Life Company.
On January 1, 2022, Athene Holding Ltd. merged with Apollo Global Management, Inc. (NYSE: APO). Apollo is a high-growth, global alternative asset manager listed on the NYSE that serves institutional and individual investors across the risk-return spectrum in yield, hybrid, and equity strategies.
Conclusion
With the advancement in healthcare and technology, the average American today is living longer than ever. Therefore, it’s crucial to have a steady stream of income that can grow safely and reliably, providing a guaranteed income during retirement years. This can help you maintain a decent standard of living even in retirement.
The Athene Protector is a fixed-indexed annuity that helps you grow and accumulate your savings with much less risk. Through its return of premium benefit rider, it provides the annuitant with a safeguard against unforeseen circumstances by allowing them to surrender their annuity at any time during the withdrawal charge period and receive their entire initial purchase premium.
If you are considering buying a Fixed Indexed Annuity that works best for protection and, at the same time, accumulating tax-deferred income to your retirement account, the Athene Protector FIA may be a decent product to look at. Although you should keep in mind that this is not the best annuity for someone seeking lifetime income payments or enhanced withdrawals.
We understand that choosing the right annuity can be a complex decision, influenced by a myriad of factors, including market conditions, individual financial goals, and evolving life circumstances. To better serve you in this critical decision-making process, we regularly conduct in-depth reviews of various annuity products, examining features, costs, and potential benefits. Delve deeper into our extensive reviews.