A single premium fixed deferred annuity, such as the American National Palladium 6 MYGA, may fit your financial needs if you desire an attractive fixed interest rate and the ability to grow your earnings on a tax-deferred basis.
With American National’s Palladium 6 MYGA, you can choose from one of several guarantee periods and lock in a competitive accumulation interest rate for the period that fits your needs.
Depending on the guarantee period, you may also receive an interest rate enhancement during the first contract year.
However, the declared accumulation interest rate still applies throughout the guarantee period you choose.
Options After the Guarantee Period
When the guarantee period you’ve chosen comes to an end, American National Palladium 6 MYGA gives you flexibility and choice.
At the end of your guarantee period, you can either:
- Withdraw all money without penalty during a special 30-day window, OR
- Continue the annuity and earn an annual effective interest rate, declared annually on the policy anniversary.
Should you decide to continue your annuity, your contract has a Minimum Guaranteed Interest Rate to assure annual growth in your annuity after the end of your guarantee period.
This Minimum Guaranteed Interest Rate will be determined when your contract is issued and will remain the same for the life of the contract.
Control Your Taxes
American National Palladium 6 MYGA allows for tax-deferred growth until you need the money from your annuity.
- While it is growing tax-deferred, you will receive compounded interest on the entire amount in the annuity and not on the after-tax amount as you would with products that are taxable each year.
- Annual Effective Interest Rate American National Palladium 6 MYGA pays an annual “effective interest rate” based upon the compounding of both the principal and interest.
Interest will be credited to the annuity, compounded daily, based on a 365 day year.
Any withdrawals, including interest-only withdrawals, will reduce the amount of interest credited to your contract.
Access to Your Money
American National Palladium 6 MYGA withdrawal privileges offer peace of mind in knowing your money is not out of reach.
You can withdraw either:
- All interest earned in the first contract year
- Up to 10% per year after the first contract year free of surrender charges or market value adjustments.
Distributions can be taken monthly, quarterly, semiannually, or annually.
Access Your Money When You Need it Most
For those unexpected health care events in your life, American National Palladium 6 MYGA provides a Confinement Waiver and a Disability Waiver that allows you to have access to your money without any surrender charges, any applicable market value adjustments, or excess interest deduction.
All waivers may not be available in all states.
Protect Your Assets for the Future
American National Palladium 6 MYGA allows you to name individual beneficiaries, thereby bypassing probate and the expenses that go with it.
Should you die, you can pass the full value of your American National Palladium 6 MYGA to your beneficiary free of any surrender charges or additional expenses that could deplete your bequest.
However, any increase in the value of the annuity contract will be taxable as ordinary income, as would any withdrawals from a qualified contract.
American National Life Insurance is also an inexpensive way to leave a death benefit for beneficiaries tax-free.
Waiver of Surrender Charges
ANICO will waive the surrender charge upon full surrender or partial surrender until the total amount of such surrenders in a policy year exceeds 10% of the annuity value at the beginning of that policy year.
In addition, ANICO will waive the surrender charge on the full amount of any full or partial surrender if the contract owner(s):
- Are confined to a hospital, hospice facility, convalescent care facility,
- Become disabled, or
- Become terminally ill (not available on all products)
- For Joint Contracts: Both contract owners must meet the waiver requirements, except in New York, where either owner’s condition can be used to meet the waiver requirements.
- Owners who are corporations, trustees, or other non-natural persons are not eligible for these additional waivers of surrender charges.
- These additional waivers and any restrictions associated with such waivers are set forth below.
ANICO will waive the surrender charge for any full surrender or partial surrender made while you are confined in any of the following facilities for 30 or more consecutive days:
- (A) A hospital licensed or recognized as a general hospital by the state in which it is located, engaged in providing or operating diagnostic and major surgery facilities for the medical care and treatment of injured and sick persons on an inpatient basis for which a charge is made, and providing 24-hour nursing service by or under the supervision of a graduate registered nurse (R.N.);
- (B) A convalescent care facility licensed by the state as a convalescent care nursing facility, a skilled nursing facility, or a custodial care facility, providing continuous nursing service by or under the supervision of a physician or a graduate registered nurse (R.N.) And maintaining a daily record of each patient which is available for review by us, and administering a planned program of observation and treatment by a physician who is in accordance with existing standards of medical practice for the injury or sickness causing the confinement; or:
- (C) A hospice facility licensed, certified, or registered in accordance with state law, which provides a formal program of inpatient care under the direction of a physician for terminally ill patients whose life expectancy is less than 6 months.
Proof of confinement must be provided and must be accompanied by a written statement from a licensed physician that such confinement is medically necessary.
This waiver applies to full surrender or partial surrenders requested no later than 90 days after the last day of confinement to such facility.
The confinement waiver is not available if you are confined to a hospital, convalescent care, or hospice facility on the date of issue or if the application is signed by a power of attorney.
You must be 80 years old or younger on the date of issue.
ANICO will waive the surrender charge for any full surrender or partial surrender when you are physically disabled or diagnosed with a disabling terminal illness.
ANICO requires proof of such disability or disabling terminal illness, including written confirmation of receipt and approval of a claim for Social Security Disability benefits.
Proof of continued disability may be required through the date of any partial surrender.
ANICO reserves the right to have you examined by a licensed physician at our expense.
The disability waiver is not available if:
- you are receiving Social Security Disability benefits on the date of issue,
- you are age 65 or older when you become disabled, or
- you were diagnosed with a terminal illness prior to or on the date of issue.
Terminal Illness Waiver
ANICO will waive the surrender charge for any full surrender or partial surrender when the owner(s) is/are diagnosed with a terminal illness or injury that is expected to cause death within twelve (12) months.
ANICO requires proof of terminal illness- a written certification of terminal illness prepared by a licensed physician who has examined the owner(s) and is qualified to provide the certification.
Retirement Income Planning
If you’re spending the interest from a CD or a fixed annuity to supplement your retirement income, consider a deferred annuity with a lifetime income rider. These annuities would offer a guaranteed income for life (even if the annuity ran out of money), removing the concern of making your money last in retirement and running out of money.
Some lifetime income riders offer a retirement income that increases to keep up with inflation, help pay for long-term care expenses, and offer an enhanced death benefit to help your beneficiaries.