American National Smart Start Accumulator Fixed Indexed Annuity In-depth Review

Note: American National also offers the Smart Start Accumulator Plus annuity, which includes additional features such as a premium bonus and enhanced liquidity options. This product is covered separately in a dedicated article that discusses its structure and benefits in detail.

How does the American National Smart Start Accumulator Indexed Annuity policy work?

An annuitant (with a maximum age at the time of policy issue of 85) can purchase the American National Smart Start Accumulator FIA with a minimum initial purchase amount of $10,000. In return, they will earn market index returns (calculated using a formula that we will discuss shortly), credited according to the chosen crediting period. Apart from the regular crediting period, various events may trigger earnings credits, including free withdrawals, long-term care events, terminal illness or injury events, or when a death benefit is payable.

The American National Smart Start Accumulator allows annuitants to choose from one or more of five indexes to determine their earnings crediting formula. Each of these indexes offers a point-to-point strategy with a participation rate, along with a fixed-rate guaranteed interest option (making a total of six strategy choices). We will discuss each available index briefly below:

S&P 500 Index: The S&P 500 is a broad benchmark tracking 500 of the largest U.S. publicly traded companies across various sectors. It’s often used as a proxy for the performance of U.S. large-cap equity markets and is a staple choice in many indexed annuities because of its strong liquidity, long history, and general market representation.

S&P MARC 5% ER Index: The S&P MARC 5% Excess Return Index (Multi-Asset Risk Control 5%) seeks to provide multi-asset diversification across equities, commodities (e.g., gold), and fixed income (e.g., U.S. Treasuries), while managing to a target volatility of 5%. It adjusts allocations dynamically based on realized volatility and may add cash exposure when markets are turbulent. As an excess return index, it reports returns net of a benchmark interest rate (e.g., the federal funds rate). As a result, both the upside performance and downside risk of this index tend to be lower than those of a broad market benchmark, such as the regular S&P 500 Index.

S&P 500 Dynamic Intraday TCA Index: This index provides exposure to the S&P 500 via E-mini futures while employing an intraday volatility control and trend-following overlay. The index can rebalance up to 13 times per day using a time-weighted average price (TWAP) mechanism to smooth execution and manage trade impact. The goal is to capture upside in favorable trends while reducing exposure during volatile or adverse intraday conditions. Again, as a result, both the upside performance and downside risk of this index tend to be lower than those of a broad market benchmark, such as the regular S&P 500 Index.

Morningstar Global Wide Moat VC 7 Index: The Morningstar Global Wide Moat VC 7 Index is focused on companies with durable competitive advantages (wide moat) globally, with an eye on valuation and quality. The “VC 7” suffix suggests a variant with a volatility control or buffer component (VC). It blends the moat investing philosophy with volatility-aware structuring to offer a more stable equity exposure globally; however, due to the volatility-aware structure, the upside also tends to be smoother (and lower).

Invesco QQQ Portfolio Plus Index: This index is part of Invesco’s multi-asset and equity indexing suite, and is tied to the QQQ (Nasdaq-100) universe. It is designed to target a volatility of 12% and adapts to changes in market conditions by adjusting allocations to equities, bonds, and commodities, seeking to help mitigate wild swings in the market. As a result, both the upside performance and downside risk of this index tend to be lower than those of a broad market benchmark, such as the regular Nasdaq-100 Index.

It is essential to note that the American National Smart Start Accumulator FIA comes with a participation rate for these indexes, meaning that the account will be credited only a portion of the index return to your annuity. These rates are subject to frequent changes; I will discuss them in detail shortly.

Note: In addition to allocating funds across the available index options, annuitants may also choose to allocate a portion of their premium to a fixed interest option. The fixed rate is subject to change periodically based on market conditions. At the time of writing this article, the fixed rate was 3.50%.

Rates and Costs associated with the American National Smart Start Accumulator Fixed Indexed Annuity

The earnings crediting formula

The earnings crediting formula is the most important part of this annuity discussion. It is important to know that we don’t simply get the index return credited to our annuity. The company has several rate-limiting mechanisms (in the form of participation rates and cap rates) in place that affect our earnings.

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 have a look at the American National Smart Start Accumulator Fixed Indexed Annuity rate sheet (as of October 2025) to understand how the earnings are determined. Please note that these rates are subject to change over time, and you can always verify the updated rates with your financial advisor or on the company’s website.

From the above rate sheet, we can see that there are six interest crediting strategies—one indexing strategy for each of the five indexes, and one fixed-rate strategy. An annuitant can allocate their premium across multiple strategies based on their preferences. You will also notice that for each strategy, participation rates and cap rates apply, which limit the maximum interest-earning potential of each option.

Point to point with Participation Rate: The participation rate describes the annuitant’s participation percentage in the 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%.

Point to point with Cap: Cap rate is the most important terminology in an FIA. It means the rate at which your interest-earning capacity is capped. For example, if an index returned 13% but your contract’s cap rate is 7%. In this situation, you will be eligible for an interest credit of only 7%. It doesn’t matter how much the index goes above the cap rate; the maximum interest you can earn is the cap rate.

Fixed Account Rates: If you opt for a fixed account rate, you simply earn the fixed rates for a particular period specified by the company before your policy begins. These rates usually tend to be 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 3.50%, which is not that good compared to other FIA’s fixed-rate offerings.

Tailored Allocation Options

The American National Smart Start Accumulator annuity distinguishes itself by offering four allocation approaches — Conservative, Moderate, Aggressive, and Custom, allowing investors to align their strategy with their individual risk tolerance and financial goals.

The Conservative option focuses on stability and lower risk by allocating a larger portion of funds to the fixed account while spreading the remaining balance across several market indexes, offering modest growth potential with principal protection. The Moderate option seeks a balance between risk and reward by emphasizing capped strategies that limit potential gains but help reduce losses, while maintaining some exposure to uncapped index strategies for steady, moderate growth. The Aggressive option aims for higher accumulation potential by allocating more funds to uncapped strategies, providing greater upside opportunities while still maintaining a guaranteed 0% floor to protect against market declines.

For investors who prefer more control, the Custom Allocation option provides full flexibility to tailor allocations between fixed and indexed strategies according to personal preferences, investment objectives, and risk appetite. At the time of writing, the declared fixed rate stood at 4.75% for the Conservative model and 3.50% for the Custom allocation, with participation and cap rates varying across indexes such as the S&P 500, Invesco QQQ Portfolio Plus, S&P 500 Dynamic Intraday TCA, Morningstar Global Wide Moat VC7, and S&P MARC 5% ER Index.

In my opinion, the Moderate portfolio is likely the most suitable choice for an average annuitant, as it balances growth potential with a reasonable level of risk control. However, if you prefer building a custom portfolio, I would suggest allocating funds to the S&P 500 Point-to-Point with Cap strategy and the Morningstar Global Wide Moat VC 7 Index with Participation Rate. The S&P 500 stands out for its long track record, transparency, and reliability as a benchmark for U.S. large-cap equity performance, while the Global Wide Moat VC 7 Index offers the advantage of relatively higher participation rates, providing enhanced upside potential within a diversified global equity framework.

Best Entry Window Feature

One of the most distinctive features of the American National Smart Start Accumulator annuity is the Best Entry Window, designed to help reduce the risk of investing at an unfavorable market point. This feature acts as a built-in safeguard for new annuity holders who are concerned about market volatility at the time of purchase.

When your policy becomes effective, a 90-day Best Entry Window begins. During this period, the index value is continuously monitored. If the index value drops at any time within these 90 days, the policy automatically resets your starting index value to the lowest point reached, ensuring that your contract locks in at the most favorable entry level available during that window. This adjustment happens automatically and comes at no additional cost.

Best Entry Window in Action

As shown in the chart below, this feature can have a meaningful impact on long-term accumulation. In the illustrated example, without the Best Entry feature, the index started at 4,050.25 and ended at 4,129.78, generating a modest 1.96% gross return (capped at 1.96%). With the Best Entry feature, however, the starting point shifted down to 3,693.60, the lowest point during the 90-day period, resulting in a much higher 11.81% gross return, capped at 9.00% under the plan’s 9% cap rate.

This demonstrates how the Best Entry Window helps investors benefit from short-term market dips that often occur right after contract issue, allowing them to start from a lower index level and potentially earn higher long-term credits.

Accessing your Money

Each year, you are allowed a 5% 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 is above the free withdrawal amount available in a given contract year), you may be entitled to access additional monies; however, 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 Smart Start Accumulator Fixed Indexed Annuity.

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.

Note that this surrender charge schedule is only valid for the American National Smart Start Accumulator Fixed Indexed Annuity product for select states. For complete details about each state, you may visit the product’s resources here.

The American National Smart Start Accumulator Fixed Indexed Annuity offers 5% annual penalty-free withdrawals, which is slightly lower than most other Fixed Indexed Annuities that typically allow 10% free withdrawals each year.

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

The death benefit will be equal to the greater of the accumulated value or the surrender value.

Riders

The American National Smart Start Accumulator Fixed Indexed Annuity (FIA) includes a limited but thoughtful set of rider benefits, designed to add flexibility and protection at no additional cost to the annuitant.

One of the standout features, the Best Entry Window, is included free of charge. As discussed earlier, this 90-day feature automatically adjusts your starting index value to the lowest level reached within the first three months of the contract, ensuring a more favorable entry point and potentially stronger long-term accumulation.

Beyond this, the product does not offer any paid income or benefit riders, which may actually appeal to annuitants who prefer a simpler contract structure without the additional fees or complexities that often accompany income or performance riders. This straightforward design makes it more transparent and easier to understand than many competing FIAs that bundle optional add-ons at extra cost.

Like most fixed indexed annuities, the Smart Start Accumulator FIA also provides several standard waiver benefits that enhance liquidity in special circumstances:

Confinement Waiver: Surrender charges and Market Value Adjustments (MVA) may be waived if the contract owner is confined for 30 days or more to a licensed hospital, skilled nursing facility, custodial care facility, convalescent care center, or licensed hospice. This waiver becomes available 90 days after issue.

Disability Waiver: Available immediately after issue and prior to age 65, this waiver removes surrender charges and MVA if the contract owner becomes physically disabled or is diagnosed with a disabling terminal illness.

Terminal Illness Waiver: Surrender charges and MVA are waived if the contract owner is diagnosed with an injury or illness expected to result in death within 12 months.

Contract/Administrative Charge

The American National Smart Start Accumulator Fixed Indexed Annuity levies no annual contract or administrative fees.

What Makes the Product Stand Out

The American National Smart Start Accumulator Fixed Indexed Annuity (FIA) combines simplicity, flexibility, and protection features that make it appealing to conservative and moderate investors. The following aspects, in my view, make this product stand out:

Best Entry Window Feature: This built-in benefit automatically adjusts the starting index value to the lowest point reached during the first 90 days after contract issue. It helps reduce timing risk and allows investors to benefit from a more favorable market entry point without additional cost.

Pre-Selected Index Combinations Based on Risk Profile: The product offers three pre-defined allocation models—Conservative, Moderate, and Aggressive, along with a Custom option. These combinations simplify portfolio construction by aligning index allocations with different risk preferences, helping annuitants make allocation choices more easily.

No Paid Riders: The Smart Start Accumulator FIA does not include optional paid riders, which are often expensive and can make contracts complex. This approach keeps the product simple, transparent, and easier to understand for investors who prefer a straightforward annuity design.

Comprehensive Waiver Benefits: The inclusion of Confinement, Disability, and Terminal Illness waivers provides additional flexibility by allowing penalty-free access to funds under specific health-related conditions. These waivers enhance the overall protection and liquidity of the plan.

What I Don’t Like

While the American National Smart Start Accumulator Fixed Indexed Annuity (FIA) offers several appealing features, there are a few aspects that I believe could be improved.

Limited Indexing Options: The product offers a narrow set of index choices, with only the S&P 500 Index representing a broad-based market benchmark. The other available indexes are proprietary or volatility-controlled, which limits exposure to traditional equity market performance.

Relatively Low Participation and Cap Rates: Compared to other Fixed Indexed Annuities in the market, the participation and cap rates on this plan are modest. This restricts the potential upside and may make the product less attractive for investors who prioritize growth.

Lower Free Withdrawal Limit: The annuity allows only 5% annual penalty-free withdrawals, while many competitors typically offer up to 10%. This lower liquidity provision may be a drawback for investors who expect to access their funds more frequently.

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.

American National Insurance Company

American National Insurance Company has been in the business since 1973. It has been one of the largest providers of annuities in the US for many years and has regularly been in the top ten Fixed Indexed Annuity Sales.

It is rated as follows by the rating agencies:

American National Insurance Company has managed to maintain decent ratings for many years. It is considered to be strong and stable financially. In 2024, the company paid out nearly $5.4 billion in claims. As of year-end 2024, some of the other financial highlights for American National include its:

$5.5 billion in total sales / direct written premium

$10 billion of total stockholders’ equity

$680 million in net income

$121 billion in total assets

Thus, based on the operating history and financial numbers, we can confidently conclude that you can trust your savings with American National.

Conclusion

With advancements in healthcare and technology, the average American today lives longer than ever. Therefore, it’s very important to have a stream of income that can grow safely and provide a fixed, guaranteed income during retirement. This helps mitigate the risk of outliving your income and ensures that you continue to live a decent life even in retirement.

The American National Smart Start Accumulator Fixed Indexed Annuity (FIA) is an accumulation-focused product designed for conservative to moderate investors who value protection and simplicity. Its standout feature, the Best Entry Window, helps mitigate market-timing risk, while the pre-selected index combinations and Smart Market Entry approach make allocation decisions easier and more disciplined. The absence of paid riders keeps the contract straightforward and cost-efficient, complemented by valuable waiver benefits for health-related events.

However, potential buyers should also be mindful of its limited index variety, relatively modest participation and cap rates, and lower 5% free-withdrawal allowance, which slightly restrict liquidity and growth potential compared to peers. Overall, the Smart Start Accumulator FIA suits individuals seeking steady, low-risk accumulation and a transparent contract structure without unnecessary complexity.