The American National Palladium Multi-Year Guaranteed Annuity (MYGA) is designed for conservative investors seeking a stable, tax-deferred, guaranteed return over a set period. In addition to fixed-rate guarantees, it offers nursing home and terminal illness benefits, allowing for flexible withdrawals in case of unexpected healthcare expenses.
Here’s the high-level fine print of the American National Palladium Multi-Year Guaranteed Annuity (MYGA).
| Product Name | Palladium MYGA |
|---|---|
Issuing Company | American National Life Insurance Company |
AM Best Rating | A (3rd of 13 ratings) |
MYGA Term | 3 and 5 year |
Surrender Charge Schedule | Varies as per annuity term |
Maximum Issue Age | 90 years |
Minimum Initial Purchase Amount | $5,000 |
Plan Types | IRA, Roth IRA, Nonqualified Account, SEP IRA, SIMPLE IRA, 401(a), etc. |
Free Withdrawals | 10% of the contract value can be withdrawn free of charge each year |
Death Benefit | Upon the annuitant’s death, the beneficiary will receive greater of (i) Contract Value without any surrender charges (ii) Surrender Value |
Free Benefits | Terminal Illness Waiver, Confinement Waiver, and Disability Waiver |
Additional Riders | N/A |
Surrender Value | Account Value less any withdrawal charges/ MVA |
RMD Friendly | Yes |
Renewal Conditions | Option to continue with the MYGA for the same guaranteed period after the initial guaranteed period ends, but at the new rates available at that time |
| Band | Premium | Rate |
|---|---|---|
Low Band | $5,000 - $99,999 | 4.45% |
Mid Band | $100,000 - $249,999 | 4.55% |
High Band | $249,999 + | 4.70% |
5-Year Term
| Band | Premium | Rate |
|---|---|---|
Low Band | $5,000 - $99,999 | 5.10% |
Mid Band | $100,000 - $249,999 | 5.20% |
High Band | $249,999 + | 5.35% |
Surrender/Early Withdrawal Charge
The American National Palladium Multi-Year Guaranteed Annuity (MYGA) allows up to 10% of the contract value to be withdrawn free of charge each year.
Should your needs change unexpectedly, and you need to take an excess withdrawal (a withdrawal that is above the free withdrawal amount available in a given contract year), you may be entitled to access additional monies, 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 Any amount withdrawn in excess of the remaining free withdrawal amount is subject to a Surrender Charge.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 American National Palladium Multi-Year Guaranteed Annuity (MYGA).
| Completed Contract Years | 1 | 2 | 3 | 4 | 5 | 6+ |
|---|---|---|---|---|---|---|
3-yr | 8% | 8% | 8% | 0% | ||
5-yr | 8% | 8% | 8% | 7% | 6% | 0% |
Market Value Adjustments - 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.
Contract/Administrative Charge
The American National Palladium Multi-Year Guaranteed Annuity (MYGA) levies no annual contract or administrative fees.
What are MYGAs?
A Multi-Year Guaranteed Annuity (MYGA) is a type of fixed annuity that provides a guaranteed interest rate for a specified number of years, typically ranging from 3 to 10. Unlike variable or indexed annuities, where returns are linked to market performance, MYGAs offer a steady, predetermined return over the selected term. This feature makes them popular among conservative investors who seek predictable, low-risk growth of their assets, particularly in a retirement context.
MYGAs work similarly to Certificates of Deposit (CDs) in terms of fixed interest rates and defined maturity periods, but they offer additional benefits that make them attractive as retirement planning tools. MYGA funds grow on a tax-deferred basis, meaning that investors do not pay taxes on their gains until they begin making withdrawals. This allows the investment to compound more effectively over time, providing a distinct advantage over taxable investments with similar yields. Additionally, MYGAs offer the benefit of principal protection, ensuring that the initial investment is safe from market fluctuations.
About American National Life Insurance Company
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.
American National Insurance Company (ANICO), established in 1905, is a prominent insurance corporation headquartered in Galveston, Texas. Operating across all 50 U.S. states and Puerto Rico, ANICO offers a comprehensive range of insurance products, including life insurance, annuities, health insurance, property and casualty insurance, credit insurance, and pension plan services.
ANICO operates through multiple subsidiaries, including American National Life Insurance Company of Texas, American National Life Insurance Company of New York, and American National Property and Casualty Company, among others. These subsidiaries enable the company to offer a diverse portfolio of products tailored to meet the varying needs of its clients.
The company has consistently demonstrated financial strength and stability. Notably, ANICO has maintained at least an 'A' rating for an impressive 83 consecutive years, underscoring its long-standing commitment to financial integrity.
As of January 2025, it is rated as follows by the rating agencies:
| Rating Agency | Rating |
|---|---|
AM Best | A |
Fitch | A |
S&P | A |
Simulator Data
| Product Name | Premium Band | AM Best | Max Issue Age | Additional Riders | Premium Range | Years | Interest Rate |
|---|---|---|---|---|---|---|---|
Palladium MYGA 3 | Low Band | A | 90 | N/A | $5,000 - $99,999 | 3 | 4.45% |
Palladium MYGA 3 | Mid Band | A | 90 | N/A | $100,000 - $249,999 | 3 | 4.55% |
Palladium MYGA 3 | High Band | A | 90 | N/A | $249,999 + | 3 | 4.70% |
Palladium MYGA 5 | Low Band | A | 90 | N/A | $5,000 - $99,999 | 5 | 5.10% |
Palladium MYGA 5 | Mid Band | A | 90 | N/A | $100,000 - $249,999 | 5 | 5.20% |
Palladium MYGA 5 | High Band | A | 90 | N/A | $249,999 + | 5 | 5.35% |
Rate Document - Individual Rates Obtained Manually from Internet Search