NU Online News Service, Sept. 19, 2003, 12:15 p.m. EDT – American National Insurance Company of Galveston, Texas, has introduced an equity-indexed annuity, the ANICO Equity Index Annuity.
American National is billing the new product as an equity index annuity that is easier to explain than most products in its class.
When American National issues the annuity, it will declare a specified rate of return for an initial term of six years.
Each year, the company will look to see whether the Standard & Poor’s 500 Index is up. If the S&P 500 Index is up, or changed, then American National will credit the specified rate of return to the account. If the index is down, then the account value will stay the same, American National says.