If you’re looking at American National Insurance and wanting to know what exactly it sells, the answer is that it goes beyond just life insurance; American National is a combination of insurance companies which provide a range of products such as life insurance, annuities, property and casualty coverage, farm and ranch insurance, business insurance, and some health and disability products.
However, there is a important point to note: at present not all American National-branded products are available to new customers. The company states that it no longer provides new life insurance or health insurance in certain areas of its business, although it still carries out the servicing of existing policies. It has also been transferring some of its specialty products from its property and casualty operations to the Farm Family brand. Availability will vary according to the particular company, product and state.
It is therefore worth examining the products offered by American National according to product category rather than assuming that all the items listed under its name are available for purchase nowadays.
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What does American National Insurance entail?
The American National Insurance Company was established in 1905 and has its head office in Houston, Texas. At present, the term ‘American National’ is used to describe a number of affiliated insurance companies rather than denoting a single insurance company that offers all of its products through one type of policy.
For instance, the American National Insurance Company is in charge of certain life and annuity business, while other companies within the group look after those products in particular states or in specific product lines. In New York, some of the life and annuity business is carried out by the American National Life Insurance Company of New York.
It is important when comparing different policies since the company listed on your policy is the one liable for that specific coverage, and differences may be found in its licensing and policy forms as well as in its availability according to the state.
American National life insurance
Life insurance is a product category which the company has always had. Generally, a life insurance policy pays a death benefit to the beneficiaries of the policy on the death of the person insured, provided that the terms, exclusions and conditions of the policy apply.
People ought to be careful if they are looking into American National life insurance at the present time. While the company’s current contact details state that it does not provide new life insurance in one section of its business it still looks after its existing customers. Moreover, since other companies associated with American National still have life insurance operations, the answer will vary according to where you live and which company is in question.
Current policyholders could still make use of various services such as changing their policy, updating their beneficiaries, taking out a policy loan or filing a claim, according to the terms of their contract. For instance, American National’s forms library has forms available for changing beneficiaries, for taking out a policy loan and for cash surrenders with respect to life policies.
When you are thinking about taking out an older American National policy, do not suppose that the fact that the company is no longer selling the policy to new customers means that your current policy has come to an end; instead, the existing contracts usually carry on in accordance with their policy terms.
American National annuities
One of American National’s present product categories is annuities.
An annuity is an insurance agreement which is mainly intended for the purpose of accumulating funds, for generating income in retirement, or for both of these purposes. With different types of annuity you can pay a premium to the insurer and then receive interest or other credited amounts, after which you are entitled to make withdrawals or to receive income payments under the contract.
American National currently lists several types of annuities, including:
- Fixed deferred annuities
- Index deferred annuities
- Single premium fixed indexed annuities
- Single premium immediate annuities
The annuities offered by the company have fixed interest rate guarantees as well as others whose interest-crediting capacity is tied to an external market index.
Fixed deferred annuities
A fixed deferred annuity typically enables the money to accumulate at a predetermined or guaranteed interest rate over a certain period.
For instance, American National’s Multi-Year Guarantee Annuity, or MYGA, is a fixed deferred annuity which offers a guaranteed interest rate for a certain guarantee period; at the end of this period the contract may give the choice between various alternatives, such as withdrawing the funds, carrying on the annuity in accordance with the relevant terms, or selecting one of the available income options.
Though these products may attract people who prefer regular interest credits, they are not equivalent to a bank savings account or a certificate of deposit. It is necessary to carefully examine the contract terms, the withdrawal provisions, the surrender charges, the taxes and all the other conditions.
Indexed annuities
American National also provides annuity products which are linked to an index. These contracts offer the possibility of earning interest according to the performance of a particular index while incorporating clause provisions intended to limit exposure to certain market losses.
It doesn’t mean that the policyholder gets the full return of the index since the amount credited can be affected by interest-crediting methods, participation rates, caps, spreads and other terms of the contract.
The annuity materials currently supplied by American National expressly cautions that it is impossible to predict index performance and that past results do not ensure future ones.
Immediate annuities
A single premium immediate annuity is a means of converting a lump sum into a series of income payments. American National refers to its Palladium Single Premium product as a way of turning funds into certain income payments for life or for a specific period, provided that the terms of the contract allow it.
An annuity of this kind may be useful as part of retirement planning when what is important is a certain level of income. The drawback, however, is that in return for income you give up access to a lump sum and this can decrease your monetary flexibility.
Property and casualty insurance
American National has also had a connection with property and casualty insurance, covering such areas as homes and cars.
The system currently in use includes claims for homeowners and for automobiles together with those for farms, ranches and businesses.
Generally, property and casualty insurance covers losses that involve property, vehicles, or liability, the extent of the coverage depending on the policy.
For instance, an automobile policy could include liability coverage for the injuries or property damage that you cause to other people, while optional or mandatory coverages would provide protection for your own vehicle depending on the state and the policy.
Homeowners’ insurance usually provides coverage for certain types of loss relating to the house and the household belongings and might also offer liability coverage. However, it is important to note the exclusions, deductibles, and coverage limits. For instance, a homeowners policy does not automatically provide coverage for every kind of disaster or every sort of property loss.
The property and casualty services of American National should therefore be assessed according to the actual policy form and not simply on the basis of the company’s name.
Farm and ranch insurance
Farm and ranch insurance is also a significant element in the history of American National insurance.
There is at the moment a brand change that is worth being aware of: American National is transitioning its specialist property and casualty lines to the Farm Family brand, and its website sends customers looking for Farm & Ranch, Business and other property and casualty products to Farm Family.
Farm insurance is quite different from standard homeowners’ insurance since agricultural operations may include barns, equipment, livestock, crops, farm buildings and commercial activities.
Instead of obtaining a standard personal property policy, a farmer might have to buy protection for several of these risks.
Business insurance
American National has likewise provided insurance for businesses, including coverage for commercial property and related aspects.
The claims system at present handles cases for Farm & Ranch and for Business, even though the property and casualty divisions associated with those operations are being moved under the Farm Family brand.
Depending on the type of policy, business insurance can provide coverage for risks involving damage to business property, liability claims and commercial vehicles.
What matters to a small-business owner is not just whether an insurer offers business insurance, but whether the policy actually covers the type of business you have, your location, your equipment, your employees, your vehicles and your liability risks.
Health and disability insurance
American National is also associated with health and disability insurance products.
The contact details currently given for the company state that it no longer provides health insurance in that area of its business but does continue to serve its existing policyholders. On the same page, separate service information for disability insurance is given.
This point is especially relevant when someone is looking online for an ‘American national health insurance plan’. Since the website is old, the policy document or the listing from a third party might refer to products which are no longer available to new applicants.
Policyholders who currently have a policy should refer to the insurer’s up-to-date service information and to their policy documents rather than depending on an older product description.
Specialty insurance products
American National’s forms and the resources relating to claims also mention specialty products, such as credit life, credit disability, credit property, GAP coverage and other specialized types of protection.
They are not the same as conventional personal insurance; for instance, GAP cover can be linked to an auto loan or a lease and is intended to cover a specific financial gap in the event of a loss to the vehicle.
Since specialty insurance involves quite specific requirements as to eligibility and contractual definitions, the policy documents are particularly important.
Is it possible to buy every American National product at the present time?
That’s the most important point for anyone who is researching the company.
The website of American National provides details regarding its current products as well as policies which the company still serves. The company carries out its operations via a number of affiliated insurers, and the products vary from state to state.
For instance, American National now promotes annuities, whereas on its contact page it states that certain life and health products are no longer being offered to new customers and that property and casualty products have also been transferred to the Farm Family brand.
If you come across an older article stating that American National offers a certain policy, it is advisable to check the current insurer’s website or talk to an authorized agent before concluding that the product is available.
Before you purchase, what should you check?
When looking into an American National policy, you should first look at the coverage rather than the company’s name.
Look at the following:
The coverage limits refer to the greatest amount that the policy will pay in the case of a covered loss, on the condition that its terms are observed.
The deductible refers to the sum which you usually pay in relation to a covered loss before the insurance company pays the rest of the eligible amount.
The following situations and losses are not included within the coverage of the policy.
Premium: This is the amount you pay for the insurance; your premium may vary according to factors such as the type of policy, the level of coverage, your location, the risk characteristics and the underwriting.
The availability varies from state to state since insurance regulations and the approved policy forms differ from state to state, so the same product may not be available in all places.
With respect to annuities, you should also consider surrender charges, the rules regarding withdrawals, the interest-crediting arrangements, any guarantees, the different fees, and the tax implications. American National specifically points out that withdrawals from its annuity products may be taxable and could involve surrender charges, depending on the contract and the circumstances.
Pros and cons of American National insurance
The wide variety of insurance products offered by American National can be of use to you if you are seeking an insurer that has experience in the areas of life insurance, annuities, and property coverage.
A further practical benefit is that the company offers online policy services and claim resources for a number of product categories.
The problem is that the company’s structure is confusing since different affiliated insurers are in charge of different products, and some of the older product lines are no longer available to new customers. The shift of certain property and casualty products to Farm Family introduces yet another level of complexity for shoppers who are trying to work out which company currently writes a particular policy.
That doesn’t mean the coverage is unsuitable; it only implies that you should check the particular insurer and product before applying.
Frequently asked questions
Is American National Insurance still operating?
Yes, American National is a group of insurance companies which provide and carry out a range of insurance and financial products. The products currently available are annuities and other insurance-related ones, while some of the older product lines are still being serviced instead of being offered to new customers.
Does American National carry on selling life insurance?
The answer varies according to the American National company and the state in question. The contact details currently listed by the company indicate that one section of its business no longer provides new life insurance policies but does continue to handle existing ones, while its affiliated companies do have life insurance operations.
Does American National provide annuities?
Yes, American National does provide a number of annuity types, such as fixed deferred, index deferred, and single premium immediate annuities. However, the particular products and features may differ from state to state.
Does American National offer health insurance?
American National’s current contact page says it no longer offers health insurance in that business but continues servicing existing customers.
What happened to American National’s farm and business insurance?
Certain specialty property and casualty lines are transitioning from the American National brand to Farm Family. The company’s website directs customers to Farm Family for Farm & Ranch, Business and other property and casualty products.
The takeaway
American National Insurance offers a wide range of products, but its current lineup is not as simple as an ordinary insurance-company product list. Annuities remain an important current offering, while life, health, property and casualty products may involve different affiliated companies, existing-policy servicing or brand transitions.
If you are shopping for coverage, verify the exact product, issuing insurance company, state availability, exclusions, costs and contract terms before making a decision. That matters more than the American National name on the website or an older product description.
