American National Insurance Company - Annuities

Annuities

* General Information
* Fixed Annuities
* Variable Annuities



General Information:A popular choice in retirement planning, an annuity refers to any type of periodic (generally monthly) payments made to an individual (called the annuitant). Payment options include lump sum, income for life, or income for a certain period of time.

Fixed Annuities: An annuity contract in which the premiums paid are invested in the general assets of the life insurance company, with the company guaranteeing a stream of fixed payments over the life of the annuity. The insurer, not the insured, takes the investment risk.

Variable Annuities : A variable annuity offers a range of investment portfolio options, with the annuity value and annuity payments varying depending on the performance of the portfolios chosen. The investment return of the portfolios in a variable annuity are subject to market fluctuations because the net premiums are invested in securities. The annuity contract owner assumes all investment risk with this product, including possible loss of principal amount invested. One of the many characteristics of an annuity is a death benefit payable to a named beneficiary, however, the death benefit guarantee is based on the claims paying ability of the issuing insurance company and does not extend to the separate account.