Transcript AMERICAN NATIONAL INSURANCE COMPANY

AMERICAN NATIONAL
INSURANCE COMPANY
A+ by AM Best & Co.
AA by Standard & Poor
Over $3 Billion in Capital Surplus
$125 in Assets for every $100 of Liabilities
Consolidated Assets of over $17 Billion
And a Comdex Score of 96!
For Agent Use Only
Fixed Annuities - What’s New?
Our ANICO Strategy Indexed Annuity or –
“ASIA”
We’ve come up with a truly winning formula
Annual Reset! Riders Galore!
For Agent Use Only
The ANICO Strategy Indexed Annuity
is Coming Your Way . . .
Want to learn about what is
the next best indexed annuity?
1.
Clean Simple Design
2.
Strong Guarantees
3. Innovative Riders Not Available on
any fixed or indexed annuities!
For Agent Use Only
ANICO Strategy Indexed Annuity
Indexed to the S&P 500
 Annual Reset/Point-to-Point, No Averaging
 100% Participation Locked in at Issue
 Annually Declared Cap Rate (Only Moving Part)
 Both an Index Interest & Fixed Interest Acct.
– Index interest based on S&P 500 Performance
– Fixed Interest declared annually
– Can reallocate funds between the two accounts on
policy anniversary – no restrictions on allocation %
For Agent Use Only
ANICO Strategy Indexed Annuity
Indexed to the S&P 500
 Issued to ages 0-85 Owner/Annuitant
 Single Premium Product
– $5,000 Minimum Premium for Non-Qualified
– $4,000 Minimum Premium for Qualified
 10% Penalty-Free Withdrawals of Annuity Value
after 1st Yr
 Both a 7 and a 10-yr Surrender (No MVA)
• 7-yr: 7,7,6,5,4,3,2,0
• 10 Yr: 9,9,8,7,6,5,4,3,2,1,0
• Walk-away at end of term
For Agent Use Only
ANICO Strategy Indexed Annuity
Indexed to the S&P 500
 Waiver of Surrender Charges
– 10% Partials after yr 1
• Based on full Account Value as of beginning of contract year
• Includes Indexed Interest Credits
– Required Minimum Distributions (ALL Yrs)
– Disability or Confinement in a:
• Hospital
• Hospice Facility
• Convalescent Care Facility
 Death Benefit
– Paid at the death of the Owner
– Greater of Full Annuity (Account) Value, including indexed
earnings up to the date of death OR
– Surrender Value
For Agent Use Only
ANICO Strategy Indexed Annuity
Indexed to the S&P 500 – Upgrades….
 Innovative (Optional) Riders: Lifetime Income Rider
– Payments can begin anytime after age 60
• No Minimum Waiting Period
• Income % is based on age at time of commencement
– Age 60-69 = 5%
– Age 70-79 = 6%
– Age 80+ = 7%
– Guarantees Income for Life Even if the Annuity Value
Declines to 0!
– It must be added at issue, but can be dropped anytime!
– Payment based on highest AV from date payments start –
but the payment cannot go down
For Agent Use Only
ANICO Strategy Indexed Annuity
Indexed to the S&P 500 – Upgrades….
 Innovative (Optional) Riders: Lifetime Income Rider
– Income Benefit is treated like a free partial withdrawal
• IT CAN BE STOPPED AT ANYTIME!
• That’s right – the guarantees of a lifetime annuitization with the
flexibility of systematic withdrawals – You Can’t Beat That!
• Payments can be re-started after having been stopped
• Can take less than the full amount available and increase it later
– The Cost for the rider is guaranteed at issue for the life of
the contract
• It is .40% of the account value per year
• Much lower than competing variable products!
• Only deducted in years when there’s positive AV Growth
– Past amounts not deducted for will be debited in future years when
AV growth is sufficient to accommodate such cost
For Agent Use Only
ANICO Strategy Indexed Annuity
Indexed to the S&P 500 – Upgrades . . .
 Innovative (Optional) Riders: Enhanced Death Benefit Rider
– Enhanced Death Benefit Rider – Increases DB by a % of AV gains
– Benefit Varies by Age Based on Issue Age
•
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Through age 69 = 45%
Ages 70 – 74 = 25%
Ages 75 – 80 = 20%
Ages 81+ = 15%
NO UNDERWRITING!
Rider Terminates at Age 95, BUT . . .
At age 95, the EDB Amount is added to the AV!
Must be added at issue, but can be dropped at anytime
Cost is guaranteed for the life of the contract
• Is anticipated to be .25% of the account value per year
For Agent Use Only
ANICO Strategy Indexed Annuity
Indexed to the S&P 500 – Upgrades . . .
 Totally Innovative Riders: Return of Premium Rider
– Gtd. Min. SV = Initial Premium – Withdrawals
– Must be added at issue
– Cannot be Dropped
– Cost will be a reduction in the declared cap rate and/or
the fixed interest rate
• Current reduction is .50% from the current cap rate or
• Current reduction is .20% from the fixed interest rate
For Agent Use Only
ANICO Strategy Indexed Annuity
Indexed to the S&P 500 – Commissions
 Commissions WITHOUT Trails:
– ‘ASIA’ 10
• 8%, Ages 0-75
• 6.5%, Ages 76-80
• 5%, Ages 81-85
– ‘ASIA’ 7
• 5%, Ages 0-75
• 4%, Ages 76-80
• 3%, Ages 81-85
For Agent Use Only
ANICO Strategy Indexed Annuity
Indexed to the S&P 500 – Commissions
 Commissions WITH Trails:
– ‘ASIA’ 10
• 5.5%, Ages 0-75
• 4.0%, Ages 76-80
• 2.5%, Ages 81-85
– ‘ASIA’ 7
• 3%, Ages 0-75
• 2%, Ages 76-80
• 1%, Ages 81-85
– TRAILS = .40% to the General Agent
For Agent Use Only
ANICO Strategy Indexed Annuity
Indexed to the S&P 500 - As of 8/1/06 . . .
 Minimum Guaranteed Surrender Value is
based on a Minimum Guaranteed Interest
Rate (MGIR) based on 90% of premium
– Indexed Interest Account
• ASIA 10: @ 3.00%
• ASIA 7: @ 2.75%
– Fixed Interest Account
• ASIA 10: @ 3.00%
• ASIA 7: @ 3.00%
For Agent Use Only
ANICO Strategy Indexed Annuity
Indexed to the S&P 500 – As of 8/1/06 . . .
 Annually Declared Cap Rates Are:
– ASIA 10 = 7.4%
– ASIA 7 = 8%
– Minimum Guarantee for contract yrs 2-10 is 4%
 Fixed Interest Bucket is Crediting:
– ASIA 10 = 3.85%
– ASIA 7 = 4.15%
 Client Notification at Renewal/Anniversary
– Policyholder receives a letter 5 weeks prior to
anniversary notifying them of renewal rates
For Agent Use Only
ANICO Strategy Indexed Annuity
Indexed to the S&P 500 – State Approvals
 ASIA Both the 7 and the 10
– Available in all states except the following:
MD
MA
MN
MT
ND
OK
OR
PA
TX
UT
VT
WA
For Agent Use Only
So, be on the look-out for
“ASIA”, the next BEST
For Agent Use Only
Other Winning Annuities . . .
MYG
Citadel 5 & 7 Century
SPIA
Multi-Yr Gtees
– 3 to 10 Yrs
5 or 7 Yr
10 Yr Surrender
Issued up to 90
SPDA
5-yr Minimum
Choice of a 1%,
Pay-out
Very Competitive
on 10-yr Certains
or longer
Best Pay-outs on
Life Contingencies
Surrender Charge
5 is SPDA
Great Rates
– 4, 5 & 6 are
7 is FPDA
the sweet spot
Principal Gtd
Non-renewing
10% P/F All Yrs
Surrender Charge
No Max Issue
Full AV @ Death
Age for Owner
10% P/F after Yr1
Full AV @ 1st
We are the
Death- owner/Annt
‘PLAYER’ in the
1% Bonus (Cit 5)
Multi-Year
2% Bonus (Cit 7)
Guarantee
– 1st 3 Yrs!
Market!
3%, 5%, 7% first
Yr. Interest Bonus
10% P/F All Yrs
Full AV @ Death
of Owner
5%-8% Comp
Trails Available
Great Bonus
Annuity Series
For Agent Use Only
–Sgl or Joint
10% Partials or
Full Surrender of
Commuted Value
After 3 Yrs or Even
at Death!
BY CONTRACT
Is That It?
For Agent Use Only
Heck No, How About our
“Cash Is King Contest for
Your Agents . . . ?
For Agent Use Only
Cash Bonus for Writing Agents:
7/1/06 – 9/30/06 on EIA Sales
 $250,000 - $500,000
=
$250
 $500,001 - $750,000
=
$500
 $750,001 - $1,000,000
=
$1,000
 $1,000,001 +
=
$2,000
 Based on cumulative premium written & paid
during contest period
For Agent Use Only
American National Insurance
Company
 Thanks for your
interest in American
National and
especially your
business!
 We look forward to a
long and profitable
relationship with you.
For Agent Use Only