What’s Covered In This ReviewIn this review, we’ll cover the following information on the American National Palladium Century 1 Annuity:
- Product Type
- Current Rates
- Realistic long term return expectations
- How it is used
- How it is most poorly used
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If you’re considering a financial vehicle that can offer you the protection of your principal, along with a guaranteed lifetime income in retirement, then the American National Palladium Century 1 fixed annuity could be a viable option for you. This fixed annuity has a number of guarantees that are actually built directly into it – which can be quite appealing.But, prior to moving full steam ahead with purchasing this annuity, it is essential that you first get a more in-depth understanding of how it works – and how it may or may not be aligned with your specific financial goals and needs. Then, after you have a deeper knowledge with regard to its inner workings, you will be much more comfortable with what you decide. Over the past several years, annuities have become more popular. One reason for this is because these products are able to offer an ongoing, guaranteed income in retirement. Therefore, those who know that they can rely on an annuity for income – regardless of how long they live – can eliminate the fear of outliving their savings in the future. But, even though this can be highly reassuring, it is also important that you realize that the purchase of any annuity should be considered a long-term commitment – and that these products will typically have a “surrender period” that lasts for several years. Because of that, if you happen to change your mind after you have purchased an annuity, it can be fairly costly to get out. Unfortunately, though, really knowing what it is that you’re getting into with an annuity product can be somewhat challenging. This is because these products oftentimes contain a myriad of “fine print” that can be highly confusing. Also, what can add even more confusion in regards to these products actually has less to do with the annuities themselves, but rather the way in which these products are sold to consumers. This is where we come in.
Annuity and Retirement Income Planning Advice That You Can TrustIf you’ve never been to our website before, then please allow us to personally welcome you to AnnuityGator.com. We encompass a team of experienced financial professionals who are highly focused on providing you with the most comprehensive and non-biased annuity reviews that can be found on the Internet today. There may be many reasons why you are looking for more information about annuities via the Internet. You may have heard friends, family, and/or co-workers talking about these financial products. You may also have attended a seminar recently about annuities, where the presenter offered you a free lunch or dinner in return for allowing him or her to present their product to you. This, in fact, may even be what has led you to this website right now. As you have conducted your annuity research, you may have noticed that there is a great deal of conflicting information about these products online. Even some very reputable websites that are devoted to marketing their annuities for sale will try to grab your attention (for the primary purpose of getting your contact information) by making claims like the following:
- Guaranteed Income For Life
- Highest Payouts
- Lowest Fees
- Top Rated A+ Companies
- Get Your Quote Now!
The American National Palladium Century 1 Fixed Annuity
|Product Name||Palladium Century 1|
|Issuer||American National Insurance Company|
|Type of Product||Fixed Annuity|
|Standard & Poor's Rating||A|
|Phone Number||(800) 252-9546|
Opening Thoughts on the American National Palladium Century 1 AnnuityAmerican National Insurance Company was founded in 1905, operating under the ideals of “strong management, prudent investment, and financial strength.” Over the past century, the company has grown into a well-respected member of the life insurance industry. The company offers a wide variety of insurance protection, such as life, health, and accident insurance, as well as retirement annuities, which can help its customers to ensure that they will have an ongoing, guaranteed income for the remainder of their lives. Due to its strong financial foundation, along with its positive reputation for quickly paying out its policyholder claims, American National has received high ratings from the insurer rating agencies – including an A from A.M. Best Company, and an A from Standard & Poor’s. Headquartered in Galveston, Texas, American National Insurance Company has more than 3,000 employees in its home office, as well as in affiliated offices in Glenmont, New York, and Springfield, Missouri. Over the past decade or so, the demand for annuities has skyrocketed. One reason for this is because of many retirees – as well as those who are planning to retire – no longer feel comfortable putting their hard earned dollars into a volatile stock market. In fact, one of the biggest fears on peoples’ minds today is that of running out of money in retirement. Because of that, both couples and individuals are looking for a safer place to put their savings, where they can obtain a nice return, along with a pension-like income in the future. A fixed annuity can provide them with just exactly that. However, due in large part to today’s low-interest rate environment, the return that has been offered on fixed annuities may not be enough for those who are in retirement to beat – or even to meet – future inflation. So, if you do plan to use the income from a fixed annuity as your primary source of future retirement income, then it could become difficult to maintain your ongoing purchasing power down the road.
Before getting into the gritty details, here are some legal disclosures…This is an independent product review, and it is not to be considered as a recommendation to purchase or to sell an annuity. American National Insurance Company has not endorsed this review in any way, nor do we receive any compensation for offering this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity product. Prior to purchasing any insurance or investment product, you should be sure to do your own due diligence and consult a properly licensed professional if you have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this review are the property of their respective owners. For additional information on how to compare annuities so that you can decide which may be the best one for you, click here to get access to our free annuity report.
How American National Describes the Palladium Century 1 AnnuityBased on the Palladium Century annuity literature, the Century 1 fixed annuity “can provide some of the assurance you need for your financial process for the long term.” The Palladium Century annuity is a fixed deferred annuity, which can provide the assurance of a guaranteed interest rate, a guaranteed death benefit, and tax deferral on all of the accumulation that takes place within the annuity. This annuity will also waive the normal surrender charges that may otherwise be incurred if funds from the annuity are needed and the annuitant is confined to a licensed hospital or convalescent home, or if he or she becomes physically disabled or diagnosed with a disabling terminal illness.
How a Financial Advisor Might “Pitch” this AnnuityIf you have been approached by an insurance or financial advisor regarding the American National Palladium Century 1 fixed annuity, it is likely that he or she placed a focus on the fixed rate guarantee, as well as the ability to attain an ongoing lifetime income with this annuity. In fact, if you have reviewed any literature regarding annuities of late, then you may have noticed that financial and insurance companies will do a great job of ensuring that their products sound very enticing. For example, based on the above description of the American National Palladium Century 1 annuity, you may feel that this could be a good product for you. But, when you really take a close look at it, you may find within the fine print that some of the features of this annuity can come at a cost. For example, while it does offer an interest rate guarantee, the reality is that the guarantee is only offered for one year on the initial premium that you submit. After that, the rates will be declared annually. And, according to the product brochure, “a renewal interest rate may be higher or lower than the current declared interest rate.” So, once you have locked up your money in this annuity, it can be extremely costly if you opt to take most or all of your funds out of it if another product comes along that may fit your needs better. Knowing just exactly what to look for in an annuity can be hard. But it is essential to understand just exactly what you are getting into, as it could determine your future income – and in turn, your future lifestyle in retirement. In order to learn more about what you should look for when purchasing an annuity, click here.
What About the American National Palladium Century 1 Annuity Fees?In addition to knowing how your money may perform over time in a fixed annuity, it can also be wise to know just exactly what type of fees you will be charged – both during the accumulation phase of the annuity, as well as after you begin to receive the income from it. With regard to the American National Palladium Century 1 annuity, there is an up-front sales commission that is paid out to the agent who sells the annuity. In addition, there will typically be administrative and/or contract fees. There are also surrender charges that could be imposed if you withdraw more than 10 percent of your overall contract value during the first full seven years of the annuity contract. These are as follows:
The Annuity Gator’s End Take on the American National Palladium Century 1 AnnuityWhere it works best: The American National Palladium Century 1 fixed annuity will generally work best for those who are looking for:
- Safety/protection of principal
- Slow but steady growth over time
- Guaranteed lifetime income stream
- Want to have access to their funds during the early years of the contract
- Want to get a high return on their money
- Will not be using the lifetime income feature