Our Professional Opinion
American National is a good annuity company with products worth comparing for both guaranteed growth and retirement income. American National Insurance Company has an A (Excellent) rating from AM Best, which is above our A− minimum. We are comfortable considering its annuities, but the company’s rating alone does not mean every product offers the best deal.
We like the company’s fixed annuities when their guaranteed rates are competitive and the term matches when you expect to need the money. If you can leave your savings alone longer, locking in a competitive rate for more years can protect you from having to renew at a lower rate later.
For lifetime income, we prefer an income rider that guarantees how the income calculation grows while you wait, rather than relying on future index performance. Even then, the actual guaranteed paycheck matters more than an impressive roll-up rate or income value.
What We Like
- Good insurance company: American National meets our financial-strength standard.
- Guaranteed-rate choices: Its fixed annuities offer different guarantee periods, allowing you to choose a term that fits your plans.
- Familiar index options: Some indexed annuities offer indexes such as the S&P 500 and Nasdaq-100, which we prefer over complicated engineered indexes.
- Guaranteed income growth: Some income riders provide contractual growth while you wait to begin lifetime withdrawals.
- Immediate income choices: Certain contracts can be useful for a specific need, such as a Social Security bridge or carefully structured Medicaid planning.
What We Don’t Like
- Indexed terms can change: Caps and participation rates on some strategies can be reduced at renewal, limiting future growth potential.
- Bonuses aren’t free money: A premium bonus can come with surrender restrictions or less attractive growth terms.
- Income riders can cost extra: Rider fees can reduce your account value, even when the lifetime income benefit is valuable.
- An income value isn’t cash: The value used to calculate lifetime payments is not necessarily the amount you can withdraw or leave to your family.
- Immediate income can limit access: Turning a deposit into scheduled payments can mean giving up control of that money. For ordinary lifetime income, we would compare a GLWB first.
Explore our individual American National annuity reviews using the links below to see what we like, what we don’t like, and which products may be worth considering.
What You Need to Know Before You Buy Life Insurance, Annuities, or Home and Auto Coverage from American National
American National Insurance Company (ANICO) has been in business since 1905, making it one of the oldest insurers in the country. With more than a century of experience, it offers a full suite of financial and insurance products in all 50 states and Puerto Rico. In 2022, the company was acquired by Brookfield Reinsurance, which brought additional resources and capital strength to the brand—but also triggered some changes to its financial ratings and operations.
This review outlines everything you need to know about American National—how it works, who should consider it, what the risks are, and why comparing premium rates, interest rates, and annuity income payouts is critical before you commit to a policy.
Financial Ratings & Company Strength
ANICO has more than 100 years of operating history and holds solid A-level ratings across major agencies. A Comdex score of 75 places it above average, indicating strong but not top-tier financial strength.
Why Company Stability Matters
When buying long-term products like annuities or life insurance, you’re relying on the insurer’s ability to:
- Maintain strong reserves
- Pay long-term guarantees
- Provide consistent policy service
- Weather long-term economic cycles
ANICO’s long operating history and A-level ratings support these requirements.
Why a Strong Rating Does Not Guarantee a Strong Product
Even highly rated companies may offer products that:
- Have higher premiums than competitors
- Provide modest cash-value growth.
- Include surrender periods that limit flexibility.
- Have lower participation rates or fewer index options in indexed annuities
- They are structured to favor the company rather than the consumer.
Issuer strength protects your guarantees, but product design determines long-term value.
What American National Sells
American National offers a wide range of insurance and retirement products:
- Life Insurance
- Types: Term Life, Whole Life, Universal Life (UL), and Indexed Universal Life (IUL)
- Use Cases: Income replacement, estate planning, tax-advantaged legacy strategies
- Notable Feature: Some whole life policies are dividend-eligible, though dividends are not guaranteed
- Annuities
- Types: Fixed Annuities, Fixed Indexed Annuities (FIAs), and Multi-Year Guaranteed Annuities (MYGAs)
- Use Cases: Guaranteed retirement income, tax deferral, principal protection
- Important Note: American National does not currently offer guaranteed lifetime income riders (GLWBs), which many retirees seek for a predictable income without annuitizing
- Auto and Homeowners Insurance
- Auto: Collision, comprehensive, liability, and optional add-ons like gap insurance
- Home: Standard homeowners coverage with optional endorsements like replacement cost or scheduled personal property
- Unique Feature: A deductible waiver applies if you’re in an accident with another ANICO policyholder
- Health and Supplemental Insurance
- Includes: Medicare Supplement, dental, vision, disability income, and accident policies
Compare American National Life Insurance With Over 25 Companies
In the News
Why It’s Important to Compare Premiums, Rates, and Payouts
When considering American National or any insurance company, it’s not enough to know they’ve been around for 100+ years. You need to compare:
- Premium Rates for Life Insurance: Other carriers may offer more competitive underwriting for your age and health class. Always shop around to see how your monthly premium stacks up.
- Fixed Interest Rates on MYGAs and Fixed Annuities: These vary by company and change frequently. Higher crediting rates can significantly impact how fast your money grows during deferral.
- Income Payouts from Annuities: If you’re using an annuity for lifetime income, some companies offer higher payouts for the same investment due to stronger internal rate assumptions, better GLWB options, or more favorable age-based factors.
Failing to compare these elements could cost you tens of thousands of dollars in lifetime income or death benefit value.
Compare American National Annuities With Other Companies
Pros and Cons of American National
Pros:
- Over 100 years in business with a national presence
- Wide variety of products for life, auto, home, and retirement planning
- Fewer-than-average complaints on auto insurance
- Offers dividend-eligible whole life for conservative growth potential
Cons:
- No income rider (GLWB) on annuities, limiting retirement income flexibility
- Life insurance dividends are not guaranteed.
- Recent downgrade by AM Best (from “a+” to “a”) reflects higher financial leverage post-acquisition
- Limited digital tools and online quoting compared to newer insurers
Who Needs It—and Who Doesn’t
Who Might Need It:
- Families or individuals looking to bundle home, auto, and life for possible discounts
- High-net-worth individuals using permanent life insurance for estate planning
- Conservative savers interested in fixed or indexed annuities without market risk
- Those who prefer face-to-face service through licensed agents
Who Might Not:
- Consumers looking for the highest annuity income payouts—other carriers with GLWB options can offer more
- Tech-savvy shoppers who want fully digital policy management
- Retirees seeking robust annuity liquidity or income riders for lifetime guarantees without annuitization
Other Insurance That May Help
If you’re considering American National for retirement or estate planning purposes, be aware that pairing an annuity with long-term care insurance or a low-cost term life policy can enhance protection. For example:
- A Fixed Indexed Annuity (FIA) from another insurer with an income rider could provide guaranteed lifetime income while allowing principal protection and market participation
- A term life policy from a carrier that offers up to 40 years of coverage can help preserve estate assets or pay off liabilities
- A long-term care annuity (not currently offered by American National) can double or triple in value for qualifying care expenses
Funding Options for Annuities
You can fund annuities through:
- IRA rollovers
- 401(k) rollovers
- Roth conversions
- Non-qualified cash savings
Each funding source affects tax treatment and liquidity differently.
Our American National Annuity Reviews
- American National Palladium MYGA
- American National Palladium SPIA
- American National Strategy Index Annuity
How to Evaluate American National Before Buying
- Compare quotes with multiple A-rated carriers.
- Review policy costs, riders, surrender charges, and flexibility.
- Evaluate cash-value projections for permanent life products.
- Compare indexed annuity options and crediting methods.
- Ensure the product aligns with your goals and timeline.
Always Compare Before Buying
A strong company alone does not guarantee a strong value. Always compare:
- Premiums
- Riders
- Flexibility
- Cash-value growth potential
- Long-term value relative to competitors
Doing so ensures the product works for your needs, not just the insurer’s
Final Thoughts
American National is a stable, diversified insurance company with deep roots and a full product suite. But when it comes to retirement income and annuities, their lack of GLWB options makes them less competitive in today’s market. Comparing premium costs, interest rates, and lifetime income options across multiple carriers is essential—especially if retirement income is your goal.
Want to compare annuity income payouts or insurance premiums? Contact The Annuity Expert for personalized advice and free quotes.
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