If you have people in your life that you care about, then it is likely that you need life insurance. With the proceeds from a life insurance policy, loved ones and survivors can ensure that they do not fall into financial hardship, and an already difficult time in their lives. That is because life insurance proceeds, which are received free of income taxation, can be used for the payoff of debt, the payment of ongoing living expenses, and/or for paying the insured’s funeral and other financial expenses.
Prior to purchasing a life insurance policy, however, it is important that you make sure that you are moving toward the purchase of the proper type and amount of protection. It is also wise to ensure that the insurance company you are getting the policy through is strong and stable financially and that it has a good reputation for paying its claims. One company that meets these criteria is American National Life Insurance Company.
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The History of American National Life
Founded in the year 1905, American National Insurance Company has evolved into a well-respected member of the insurance industry. This company offers a wide variety of life insurance, retirement annuities, pension plan products, accident and health insurance, credit insurance, and property / casualty insurance for personal lines, agribusiness, and targeted commercial exposures. The company’s products are distributed via career agents, as well as independent marketing organizations and multiple line exclusive agents. In addition, products are available via direct distribution channels.
American National’s main headquarters is in Galveston, Texas. The company also has offices in Springfield, Missouri, as well as in Glenmont, New York. The company’s products are available in all 50 of the U.S. states, and in Puerto Rico. American National Insurance Company is a stock insurance company, and its shares trade on the NASDAQ stock exchange under the trading symbol ANAT. The company has paid stockholder dividends for more than 100 consecutive years.
American National Life Review
Today, American National provides services to more than 5 million policyholders. American National Insurance Company is the parent company to American National Life Insurance Company of New York, American National Property and Casualty Company, Farm Family Companies, and Specialty Companies. The company also has a limited number of agreements with other companies in order to market specific products.
American National has earned numerous awards over the years, including being ranked in Forbes list of American’s Most Trustworthy Financial Companies. As of the third quarter of 2017, American National announced a 23.6% increase in quarterly income to $73.3 million, which is up from net income for the same period of 2016 of $59.3 million.
For this same quarter, the company brought in total premiums and other revenues of $872.8 million – which is an increase of $49.6 million over the prior-year quarter. Total life insurance in force reached $101 billion as of September 30, 2017.
Insurer Ratings and Better Business Bureau Grade
Due to its strong financial footing, and its timely payment of policyholder claims, American National Insurance Company has earned high ratings from the insurer rating agencies. These include an A from A.M. Best Company and an A from Standard & Poor’s. At this time, American National Insurance Company is not an accredited business through the Better Business Bureau (BBB), and the company has not been given a grade (of A+ to F) by the BBB.
Indexed Universal Life (IUL) Insurance Coverage Offered Through American National Life
Throughout the years, life insurance products have evolved from simply a way of ensuring financial stability for survivors via the payment of a basic death benefit to financial tools that can do many different things.
One of the newer products in the life insurance marketplace is indexed universal life or IUL. This is a form of permanent life insurance coverage that offers a death benefit as well as a cash value component.
As with other types of permanent life insurance, the cash that is in the cash component of the policy is allowed to grow on a tax-deferred basis. This means that there is no tax due on the gain unless or until the funds are withdrawn.
The return on this cash is based primarily on the performance of an underlying market index (or multiple indices) such as the S&P 500. If the underlying index performs well, then a return is credited, typically up to a set cap, or maximum.
If, however, the performance of the underlying index is negative, the policyholder won’t lose value because the return on the cash value for that time period is simply a 0%. For this reason, indexed universal life insurance offers an opportunity for market-linked returns, while at the same time providing protection of principal.
American National’s indexed universal life insurance products offer the same features as the company’s regular universal life – such as death benefit and cash value build up – but they also offer this ability to earn an additional amount of return.
Just some of the features of an indexed universal life insurance policy include the following:
- Flexible premiums – Policyholders may be able to vary their premiums within certain limits, provided that the policy retains a sufficient amount of cash value.
- Flexible benefits – Policies may also allow you to either increase or decrease the death benefit amount, based on changing needs (and subject to certain guidelines).
- Loan access – Policyholders borrow against a portion of the policy’s cash value in order to meet unexpected financial needs.
- Optional riders – Many of these policies can be customized using riders.
- Upside potential – Indexed universal life insurance polices may be credited with all or a portion of the gain from the index – which is expressed as a percentage – but at a lower risk, as the policy is not invested in the stock market.
In addition to using an indexed universal life insurance policy to ensure that loved ones will not be left in financial hardship, the flexible cash value can also provide added benefits while the insured is still alive. For instance, policyholders oftentimes use the funds that are in the cash value to supplement retirement income and/or to increase the amount that is deposited into tax-advantaged accounts.
Other Products and Services Available
In addition to indexed universal life insurance, American National offers term, whole life, and universal life insurance coverage. There are also variable universal life and credit life insurance policies available.
Term life insurance offers death benefit protection, without any cash value or savings build up. Because of this, term life insurance can be very affordable – especially for those who are younger and in good health at the time of application.
With term life insurance, coverage is purchased for a fixed period of time, such as ten years, fifteen years, twenty years, and even thirty years. During this time, the amount of coverage will remain the same, as will the premium payment. Many of these policies offer the ability to convert to permanent coverage – without the need to take a medical exam in order to qualify.
Whole life insurance is a type of permanent life coverage. This type of life insurance offers permanent protection, level premium payments, and the accumulation of cash value that is based on a return set by the insurance company.
With a whole life insurance policy, the coverage is intended to remain in force for the remainder of the insured’s entire lifetime – provided that the premium is paid – regardless of the insured’s increasing age, and whether they contract an adverse health condition.
American National also offers regular universal life insurance policies. As another form of permanent life insurance, universal life offers both death benefit protection and cash value build up. However, this type of coverage is considered to be more flexible than whole life insurance, as the insured is allowed – within certain guidelines – to alter the timing and amount of the premium, based on their specific needs.
You can also benefit by borrowing against a portion of the policy’s cash value to meet unexpected financial needs (although unpaid policy debt will reduce the proceeds payable at the insured’s death).
Many universal life insurance policies can be customized with riders such as accelerated benefits, disability waivers of premium or stipulated premium, children’s level term, and coverage continuation.
Variable universal life is also a permanent form of life insurance coverage. Here, there is death benefit protection, as well as investment build up. The return on the investment component is based upon the performance of underlying equities such as mutual funds. While this can allow for a higher return than that of a regular universal life insurance policy, it can also pose the risk of substantial losses.
There are also additional, optional riders available that can help to “customize” the coverage to meet specific needs and goals. There are also multiple investment portfolio options to help diversify for particular goals.
Other products offered by American National include:
- Annuities – Now more than ever, Americans are responsible for accumulating their retirement savings. Annuities can provide you with an ongoing, guaranteed income – regardless of how long you may need it. American National offers fixed deferred, and index deferred annuities, as well as variable deferred and single premium immediate annuity products.
- Health Insurance – There are a wide variety of health insurance plans offered by American National. These include Medicare Supplement insurance, supplemental health coverage, credit disability, and employer spot loss coverage that can help protect employers from catastrophic claims.
- Personal Property Insurance – American National has a long list of personal property insurance policies, including auto, home, renters, collector car, recreational vehicles, and umbrella coverage. There are also a variety of discounts and/or rewards available that can help to lower premium cost of these policies.
- Agribusiness Insurance – Specialized coverages for farms, ranches, equine owners, and country estates can be purchased through American National.
- Business Insurance – Business insurance coverage can help to protect specific needs, such as damage to property, liability, lost business income and extra expenses, commercial auto, worker’s compensation, and commercial umbrella.
How to Get the Best Premium Rates on Indexed Universal Life Insurance from American National Life
If you are seeking the best premium rates on indexed universal life insurance from American National Life Insurance Company – or from any company – then it is recommended that you work with an independent life insurance agency or brokerage. That way, you will be able to compare multiple life insurance benefits, policies, and premium quotes – and from there you can determine which one will work the best for you.
When you are ready to move forward, we can help. We are an independent life insurance brokerage, and we work with many of the top life insurance carriers in the industry today. We can provide you with all of the details that you need in order to make a well-informed life insurance purchasing decision. We can do this for you quickly and conveniently – all from your computer – and without having to meet with an insurance agent. If you are ready to start this easy process, then just simply take a moment to fill out the quote form on this page.
Should you find that you still have any additional questions or concerns about indexed universal life insurance – or life insurance overall, please feel free to reach out to us directly and speak with one of our experts. We are available to provide you with quotes, as well as to walk you through a variety of insurance-related situations. We can be reached toll-free by dialing 800-712-8519.
We know just how overwhelming it can be to try and determine which life insurance product is right for you. There are so many different variables and plans to choose from, and you want to be sure that you are going in the right direction. But the good news is that this can be made so much easier when you are working with an ally on your side. So, contact us today – we’re here to help.