Choosing the right annuity is an important financial decision, and we're here to help. This FAQ provides answers to common questions about American National Insurance Company's Multi-Year Guarantee Annuity (MYG Annuity), so you can feel informed and confident in your choices.
A multi-year guarantee annuity (MYG Annuity) is a fixed deferred annuity that offers a guaranteed interest rate for a set period.
You deposit a single premium at purchase, and the annuity earns a fixed interest rate for the interest rate guarantee period you selected.
When the selected guarantee period ends, you can withdraw your money, continue the annuity at an annual rate determined by the insurance company, or elect to receive a guaranteed stream of income for life or a set period by applying the value to available settlement options.
Multi-year guarantee annuities offer guaranteed growth, tax-deferred earnings, and protection from market risk.
A MYG Annuity from American National Insurance Company also provides access to funds through an annual penalty-free withdrawal option and waivers that allow early access to your money without any surrender charges for certain unexpected health care events. Restrictions apply.
Additionally, multi-year guarantee annuities include a death benefit that allows your beneficiaries to receive the full value of your annuity directly, avoiding probate—a potentially lengthy and costly legal process. This ensures a smoother and faster transfer of assets to your loved ones.
A multi-year guarantee annuity is intended for long-term accumulation needs. Access to your money is limited during the annuity accumulation period and early withdrawals may incur surrender charges and a market value adjustment if they exceed the annual penalty-free amount. Withdrawals before the age of 59 ½ also may be subject to a 10% federal tax penalty. Withdrawals, including interest-only withdrawals are subject to income tax and will reduce the amount of interest credited.
While both offer guaranteed interest rates, a MYG Annuity provides tax-deferred growth, allowing your savings to compound and grow faster without taxation on interest earned until the money is paid to you.
It also offers more flexible access to funds, with options for penalty-free withdrawals and waivers that allow early access to your money without any surrender charges for certain unexpected health care events. Restrictions apply.
Unlike CDs, annuities can bypass probate and the expenses that go with it, ensuring your beneficiaries receive the full annuity value directly.
Annuities are backed by the financial strength of the insurance company rather than the FDIC like CDs.
Unlike bonds, which can fluctuate in value if sold before maturity, multi-year guarantee annuities (MYGAs) provide stability. With a MYGA, your interest rate is locked in for the selected guarantee period. Additionally, MYGAs allow for penalty-free withdrawals up to a specified limit each year, offering both security and flexibility.
A MYG Annuity is ideal for individuals nearing or already in retirement who are looking for guaranteed, tax-deferred growth without market risk. However, because access to funds is limited during the annuity accumulation period, it may not be the best choice for those who prioritize liquidity and need full access to their money with no restrictions.
It can also be a great option for those who have maxed out contributions to other tax-advantaged accounts, such as a 401(k) or Roth IRA, and are looking for additional ways to grow their money.
Additionally, individuals seeking better tax efficiency can choose the guarantee period and strategically time limited withdrawals for greater control over tax planning.
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Your single premium will earn interest at the initial declared interest rate for the interest rate guarantee period you select. After the interest rate guarantee period, your annuity will be credited interest at a rate determined annually.
The Palladium MYG Annuity from American National Insurance Company offers the initial declared interest rate for the selected interest rate guarantee period. If your single premium is $100,000 or greater, we will credit additional interest to the annuity value for the duration of the selected interest rate guarantee. (Subject to change. May not be available in all states.)
After the interest rate guarantee period, we will credit interest at a rate determined by us annually on each contract anniversary. Interest rates declared after the interest rate guarantee period may be higher or lower than the current declared interest rate; however, subsequent declared interest rates will never be less than the Minimum Guaranteed Interest Rate specified in your contract.
Declared Interest Rate. This is the interest rate used in crediting interest to your contract. The initial declared interest rate will not change during the interest rate guarantee period. The declared interest rate does not include any additional interest. After the interest rate guarantee period, the declared interest rate is subject to change but can never be less than the Minimum Guaranteed Interest Rate.
Minimum Guaranteed Interest Rate. This is the minimum rate of interest that can be used in crediting interest to the contract. This rate is determined on the issue date of the contract and is not subject to change. Any withdrawals, including interest only withdrawals, will reduce the amount of interest credited to your contract.
Your policy goes into effect, and interest starts accruing on the day your funds are received and applied to your annuity.
It pays an annual “effective interest rate” based upon 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.
Yes, the Palladium MYG Annuity offers up to 10% access to funds each year. Any withdrawals above the free amount may be subject to surrender charges.
Up to 10% of the beginning contract year annuity value may be withdrawn without a surrender charge every year. Withdrawals are subject to income tax.
You have the flexibility to request withdrawals at any time before your annuity matures, whether for interest-only or fixed amounts. You can also adjust or stop withdrawals anytime with a written request. Choose a schedule that works best for you—monthly, quarterly, semi-annually, or annually. The minimum withdrawal amount is just $100, giving you control over how and when you access your funds. Withdrawals may be subject to surrender charges and federal income taxation.
For those unexpected health care events in your life, a MYG Annuity from American National Insurance Company provides a Confinement Waiver, Terminal Illness 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. Restrictions apply.
Yes, as the annuity owner you can start an online request from the account portal homepage or the forms directory. You will receive digital payments to a verified bank account (paper checks are not available). The process will take at least 5-7 days to complete and distribute the funds.
At the end of the selected guarantee period, you can:
The 30-day window is a special surrender option. At the end of the Interest Rate Guarantee Period, you can surrender the contract free of surrender charges and any market value adjustments. The request for the surrender must be made within the 30-day period following the end of the Interest Rate Guarantee Period. The special surrender option applies to a full surrender only and is not available for partial withdrawals or systematic withdrawals.
No annual fees but surrender charges may apply for early withdrawals beyond the penalty-free amount.
Federal income tax on annuity earnings is deferred until distributions are taken from the annuity.
At the end of the interest rate guarantee period selected, you have three options, each with different tax considerations depending on the source of the money you use to purchase your Palladium MYG annuity – whether qualified or non-qualified dollars.
1. Withdraw all your money without penalty during a special 30-day window.
2. Continue the annuity and earn an annual effective interest rate declared annually on the policy anniversary.
3. Convert the annuity surrender value into a guaranteed stream of income for the rest of your life or a set period.
Tax-deferred growth allows you to defer paying taxes on your earnings until withdrawal, which can help your savings grow faster. This is because you're able to reinvest the money you would have paid in taxes, which can compound over time.
With a Palladium MYG Annuity, you can select a guarantee period and time your withdrawals for better tax efficiency – including the opportunity to withdraw funds when you may be in a lower tax bracket, such as in retirement.
Withdrawals before age 59½ may be subject to a 10% federal tax penalty in addition to income taxes.
Up to 10% of the beginning contract year annuity value may be withdrawn without a surrender charge every year.
You can withdraw up to 10% of your annuity value each contract year without surrender charges or adjustments.
If you need to access more than the free withdrawal amount, surrender charges may apply and decrease over time based on your contract terms.
Partial Surrender: Minimum withdrawal is $250, and at least $2,000 must remain in the annuity. The surrender charge applies only to the portion exceeding the free withdrawal amount.
Surrender Charge = (Amount Over Free Withdrawal) x (Surrender Charge Percentage)
Full surrender: Upon written request, you may surrender your contract for its surrender value at any time. There is no surrender charge on any unused 10% free withdrawal amount. The free amount is reset each year.
Surrender Charge = (Annuity Value – Unused Free Withdrawal Amount) x (Surrender Charge Percentage)
View Surrender Charge Schedule
There are other circumstances under which the surrender charge may be waived including unexpected health events such as terminal illness, disability and confinement.
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With your online account, you have access to a variety of features to manage your annuity. Here’s what you can do:
You can update your account information online under the "My Profile" section in the client account portal.
You can name individual beneficiaries thereby bypassing probate and the expenses that go with it. Should you die, you can pass the full value of your Palladium® MYG Annuity to your beneficiary free of any surrender charges or additional expenses that could deplete your request.
At this time, beneficiaries cannot be updated online. You can call (866) 612-6981 to request the form via mail or OneSpan. Changes cannot be made over the phone.
Some notifications will be sent to the email address on file while others, such as semi-annual statements, will be mailed to the home address listed on the account.
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American National Insurance Company, headquartered in Galveston, Texas.
You have two convenient ways to purchase a MYG Annuity:
Online: You can buy direct by opening an account and completing your purchase in under 10 minutes using a simple, online form at annuities.americannational.com.
Through an Agent: You can connect with a local American National agent by visiting Find an Agent.
Unlike other financial products widely available online for do-it-yourself planning —such as stock trading, CDs, mutual funds and life insurance—annuities have remained less accessible. By offering direct access to our MYG Annuity, we are providing an additional option for those who prefer an independent approach to managing their savings.
By opening access to our MYG Annuity, we are empowering more individuals to take a portion of their retirement savings and protect it from market volatility while receiving guaranteed growth and other unique benefits not provided by other conservative product options.
A MYG Annuity is an excellent choice for do-it-yourself planners seeking guaranteed growth as part of their diversification strategy, using a straightforward insurance product that simplifies planning while offering a hands-off approach to growing savings. At the end of the accumulation period, you can 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.
In deciding whether an online purchase is right for you, please consider these important points:
Please closely read the Palladium MYG Annuity references and disclosures before completing your online purchase.
You can fund a MYG Annuity with as little as $5,000.
Currently, you can purchase directly online using money from your bank account or by transferring funds from a traditional or Roth IRA. If you’d like to use funds that aren’t currently accepted online, a local American National agent can help you complete your purchase. Find an agent here.
Qualified dollars are funds that come from tax-advantaged retirement accounts like a 401(k), traditional IRA, or other pre-tax retirement plan. These funds haven’t been taxed yet, so withdrawals are fully taxed as ordinary income.
Non-Qualified Dollars are funds that come from after-tax sources. Since you’ve already paid taxes on the principal, only the interest earned in the MYGA is taxable upon withdrawal.
Withdrawals above the 10% free amount are subject to surrender charges and adjustments.
No, the Palladium MYG Annuity is a single premium product, meaning additional contributions cannot be made after your initial purchase.
Your policy goes into effect on the day your funds are received and applied to your annuity.
You have a 30-day free look period, which begins on the day you receive your annuity contract. If you cancel within this time, you will receive a full refund of your premium with no penalties.
Currently, the MYG Annuity is not available for direct purchase in New York. However, residents of New York can purchase through a local American National agent. To find an agent, visit Find an Agent.
Of course! Please call (866) 612-6981 or visit the Find an Agent website.
American National is a group of companies writing a broad array of insurance products and services and operating in all 50 states. Life insurance, annuities, pension products, and other products and services are written through multiple companies. Each company has financial responsibility only for the products and services it issues.
American National Insurance Company, founded in 1905 and headquartered in Galveston, Texas, is licensed to conduct business in all states except New York.
In 2024, Forbes once again recognized American National as one of America’s best insurance companies.
Since 1905, American National Insurance Company has been a consistent source of financial strength and long-term planning, which has earned the respect of its policyowners, employees and business partners. The company’s financial strength and operating integrity have positioned it as a leader in the insurance industry.
The company has maintained at least an A rating from AM Best for an impressive 83 consecutive years and was one of the U.S. life/health insurers recognized for having maintained Best's Financial Strength Rating of A or higher for at least 75 years.
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Annuities are backed by American National Insurance Company’s strong financial foundation and commitment to its policyholders. Additionally, state guaranty associations provide another layer of protection, covering annuity contracts up to the limits set by each state.