The Independent Voice

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1 Independent Marketing Group Life Pensions Annuities , opt. 1 March 2015 The Independent Voice ANICO Strategy Indexed Annuity PLUS features FOUR ONE-YEAR INDEXED STRATEGIES! LEARN MORE Tax Return Sales Ideas Federal income taxes continue to rise each year as Federal debt and spending both continue to increase. Maximum Federal income tax rates are 39.6%. However, for higher income individuals, there is an additional tax on investment income of 3.8% which attaches to ordinary tax rates and capital gains rates which equate to 43.4% for ordinary income and 23.8% for capital gains. Add to that applicable state and local income taxes and now in many states the tax rate may be over 50% on certain income. Our clients are scrambling to reduce their taxes by protecting as much money as they can and we may be able to help! We have the products they can use to reduce their taxes and let the client decide what day they want to be taxed on their income and not the IRS! Inside This Issue: 3 Cash is King in 2015! 4 A Quick One Million Dollar Sales Idea! 5 Complimentary Pension Webinars 6 Creating an Appropriate Bucket List 7 What s Happening in New York? 8 March Rates 10 March Rates NY The first item is make sure they maximize their qualified plan contributions. If they are a closely held business owner, even if they currently have a plan, obtain an employee census and let the IMG pension team prepare a proposal. They can maximize benefits the ownership receives and structure a program that will provide benefits to both owners and employees. How many times have we called our clients or prospects in February, March and April to obtain a meeting and been told that they are in the middle of their taxes and will meet once tax season is over. Don t let this opportunity pass you by! When you meet with your clients and prospects let them know you have some ideas that may help reduce their taxes. Look for certain items on their tax return if it is available: Line 8B of the 1040 U.S. Federal tax return contains the amount of tax exempt interest an individual receives and that income is added in when determining whether an individual s social security will be taxable. If that income is currently not needed for living expenses the money could be placed into a fixed annuity that would grow tax deferred. Now the income is off the individual s tax return and it will not impact the taxability of their social Continued on Page 2 For Agent Use Only; Not for Distribution or Use with Consumers

2 Continued from Page 1 security. Line 8A of their 1040 contains taxable interest. If an individual is in retirement, you can ask them if their taxable interest has gone down and would they like to look at an asset that provides a steady income for life that they cannot outlive A SPIA. If the individual is still working, ask them if they need the interest to live on or will they be trying to accumulate it for retirement? If they do not need the interest to live on and are living off their salary, you may want to introduce a tax deferred annuity. Since the earnings from an annuity are taxable only upon withdrawal as ordinary income, they can choose the year it should be taxable on their return. Let s help them make that a date when they are in retirement and in a lower tax bracket. 1 Line 9A of their 1040 reflects the amount of dividends an individual receives. If the individual is still working, these dividends are in all likelihood not needed and the return on investment is being taxed away each and every year until they will need it. Why not help these clients get these dividends off their tax return and reduce their taxable income by placing assets in a deferred annuity where they will decide when it should be taxed and where the investment can grow tax deferred until they retire and need the income. Most people do not believe taxes will go down again and the federal debt will encourage lawmakers to continue to increase the tax burden on our clients. We have the products that may help our clients reduce their taxes. Products that can allow clients to control when their money will be taxed. We have a great story to tell. Let s make sure we do so! This is not intended to be tax or legal advice. Everyone s situation is different. Neither American National nor its representatives give tax or legal advice. Your clients should consult with their tax and legal advisors regarding their specific circumstances. If you re interested in learning more, please contact: Robert W. Schefft, JD, MBA, CFP x 5767 bob.schefft@anico.com 1. Clients should consider their income tax brackets, both current and anticipated, when making a decision between products. Interest earnings from other non-annuity or non-insurance products may be taxed annually and at rates that vary depending upon the nature of the earnings and the individual s tax bracket. Lower maximum tax rates on capital gains and dividends could make the return for the taxable product more favorable, thereby reducing the difference between a taxable product and a tax deferred product. Neither American National nor its representatives provide legal or tax advice. Please consult your attorney or tax advisor regarding specific circumstances TAX igo Live e-app Demonstration Submitting applications electronically for American National s Executive UL, Signature Indexed UL and Signature Term products is made easy and paperless using ipipeline s igo e-app system. This demonstration will cover the basics of how to begin, complete and submit electronic applications. (Click Date to Register) Wednesday, Mar 25, 2015 at 12:00 PM - 1:00 PM Eastern Time 2 For Agent Use Only; Not for Distribution or Use with Consumers

3 $500,001 - $750,000 $750 Cash Bonus Cash King IS IN 2015 CASH BONUS ON FIXED ANNUITY SALES! $750,001 - $1,000,000 $1,000 Cash Bonus $1,000,001 + $1,500 Cash Bonus Begins January 1 Ends April 30 Total of all Annuities written and paid. Minimum of 3 Applications This offer includes group annuity sales. Not Available in New York. This offer may not be available in all distributions. Contact your marketing area to confirm eligibility. Cash Bonus is non-cumulative and only paid to the writing agent. Questions? Call , Option 1 American National Insurance Company One Moody Plaza, Galveston, Texas For Agent Use Only; Not for Distribution or Use with Consumers IMG-X27 3

4 A Quick One Million Dollar Sales Idea! Imagine yourself saying, Congratulations Mr. Client. You now have ONE MILLION DOLLARS 1 - whether you live or die. If you live to age 62, you will receive $1,000,000 in cash, regardless of market fluctuations, for you to use as you please. If you die anytime before age 62, your family will also receive ONE MILLION DOLLARS 2. You can present such statements when you close a 412(e) Defined Benefit Plan sale which includes a million dollar face amount whole life policy and a promise of a one million dollar accumulation at the retirement age of 62. When the annual plan contribution is made, the Million Dollars, Live or Die, is GUARANTEED! Who is the prospect for such a sale and what is the cost? The best prospect would be a one person business that is making money and needs business deductions (pathologist, anesthesiologist, real estate broker). The second best prospect would be a two person business that is making money and needs deductions. The fewer employees, the better. The total plan costs at sample ages of 45, 50, and 55 with a retirement age of 62 are shown in the table below. One Million Dollars - Live or Die! Hypothetical Example: Age Affinity 7 Whole Life Q Life Insurance Premium Group Fixed Annuity Annuity Premium Total Annual Deductible Contribution 45 $17,800 $40,398 $58, $22,190 $63,782 $85, $27,890 $124,354 $152,244 This hypothetical illustration is for illustrative purposes only. Any changes to underlying assumptions will provide significantly different results. The total plan contribution is deductible to the business so Uncle Sam is subsidizing the contribution. The client is GUARANTEED ONE MILLION DOLLARS, LIVE OR DIE! Additionally, the annual plan costs shown above are reduced each year by the prior year s life insurance dividend (the Affinity 7Q Whole Life policy) and by the amount of interest paid on the annuity (the Palladium Group Fixed Annuity) in excess of 1%. If death occurs, the family will receive the one million dollar face amount of the policy PLUS the accumulation value of the annuity at the time of death. Create a TWO MILLION DOLLAR IDEA by doubling the numbers (approximately) or create a HALF MILLION DOLLAR IDEA by cutting the numbers in half. All we need is a census to get started! 1. Plan benefits are guaranteed and backed by the claims paying ability of the issuing insurance company. 2. Assumes premiums are timely paid for the underlying life policy and that the underlying life policy has not lapsed. The 412(e)(3) defined benefit pension plan is a tax-qualified retirement plan that must comply with the Employee Retirement Security Act of 1974, as amended (ERISA), the Internal Revenue Code of 1986, as amended and other applicable law. For these reasons, you may wish to consult an attorney in these matters before establishing a 412(e)(3) plan. The amount of funds accumulated and the interest earnings on the underlying products solely determine the benefit at retirement. Distributions made to a Participant before age 59 1/2 may be subject to a 10% premature IRS distribution penalty. Neither American National Insurance Company nor its agents give tax or legal advice. Clients should contact their attorney or tax advisor on their specific situation. IMGNL For Agent Use Only; Not for Distribution or Use with Consumers

5 Complimentary Pension Webinars You re Invited... Life Insurance in Pension Plans There are many opportunities to add life insurance to pension plans due to the advantages and cost effective method of purchase. Learn how and why so many small business owners elect to include life insurance in their pension plan. Wednesday, Mar 11, 2015 at 1:00 p.m. Eastern Time Wednesday, Mar 18, 2015 at 1:00 p.m. Eastern Time Retirement Plan Review Those of you in the life insurance market are familiar with life plan audits and policy review. They: Are Good for the Consumer Allow You Access to Existing Clients Provide Access to New Clients Generate Revenue Thursday, Mar 12, 2015 at 1:00 p.m. Eastern Time Thursday, Mar 19, 2015 at 1:00 p.m. Eastern Time Space is limited so click one of the links above to register now! These presentations will be recorded. To receive a link to the recording, please register even if you cannot attend the live presentation. Neither American National Insurance Company nor its agents offer tax or legal advice. Clients should consult their own tax and legal advisors. For Agent Use Only; Not for Distribution or Use with Consumers 5

6 Creating an Appropriate Bucket List No, this is not a Hollywood drama or list of currently unattainable activities; this is about choosing different indexing strategies with the new ANICO Strategy Indexed Annuity PLUS from American National. The Strategy PLUS has been designed to take advantage of different choices to provide contract holders with several indexing options. These choices are duration and participation rates. By combining these different choices a number of strategies can be chosen to better meet contract holder needs. Currently the Strategy PLUS offers nine different indexing options with a minimum amount of $5,000 per option. By using different options for near term, mid-term, and long term planning needs, contract holders have the opportunity for interest earnings that better match their needs. Based on the past 30 years performance of the S&P 500 Index as illustrated in our software, following are examples of possible strategy selections using current caps and participation rates: Near Term Mid Term 40% 10% 20% 30% Declared Rate (fixed) Performance (Trigger) 1yr Point to Point Monthly Sum 30% 10% 10% 30% 20% Monthly Sum 1 yr Point to Point Performance (Trigger) 3yr 50% (Participation) 5yr 50% (Participation) Near term (1 year) strategy choices seek interest earnings at least annually and is a strategy that may be used when income is planned to be withdrawn from the contract. Historical IRR is 3.06% Mid term (2 to 4 years) strategy choices generally seek interest earnings during the first several years of the contract when income withdrawals will not be needed. Historical IRR is 4.25% Click for Full Illustration Click for Full Illustration Long Term 10% 20% 60% 10% Monthly Sum 1yr Point to Point 3yr 50% (Participation) 5yr 50% (Participation) Long term (5 years or greater) strategy choices seek interest earnings over the duration of the contract. Historical IRR is 5.04% Click for Full Illustration By using the American National illustration system a test of our sample selections using a 30 year performance history (12/1/ /1/2014) will illustrate how our selections would have worked if the product was available during the historical time frame. Past performance is not a guarantee of future results. Our near term selection has interest earnings made to the contract in each year, the mid-term selection has 5 years without interest earnings over the period and the long term selection has a similar number of no interest earning years. The annualized internal rates of return perform as expected over the 30 year period with the near term averaging 3.06%, the mid-term 4.25%, and the long term 5.04%. Your American National wholesale team will be happy to help you with the illustration system and provide additional details on this exciting new product. IMGNL0008 Form Series IA13, PTP13, 1YRTS13, SRS13 (Forms may vary by state) ANICO Strategy Indexed Annuity PLUS is not a registered security or stock market investment. When a person buys this annuity, the person is not buying an ownership interest in any stock or index. Indexed strategies earn interest related to the performance of an Index. Whether an indexed strategy earns interest or not and how much interest is earned is dependent on a number of factors: index performance, participation rate, cap and segment term. It is possible to earn 0% interest for a given segment term. The performance of the index cannot be predicted over any given period of time. Past history of the Index is no guarantee of future performance. There is not one particular interest crediting strategy that will deliver the most interest under all economic conditions. American National Insurance Company and its agents do not make any recommendations regarding the selection of indexed strategies. American National Insurance Company and its agents do not guarantee the performance of any indexed strategies. The Declared Rate Strategy earns interest at an interest rate we declare at the beginning of each Contract Year and is guaranteed for one year. All strategies are not available in all states 6 For Agent Use Only; Not for Distribution or Use with Consumers

7 WHAT S HAPPENING IN NEW YORK? Business is conducted in New York by American National Life Insurance Company of New York, headquartered in Glenmont, New York Announcements New York: Senior-Specific Certifications and Designations As of November 21, 2014, New York producers have an additional requirement to comply with when using seniorspecific designations. Prior to this new law, New York prohibited insurance producers from using senior-specific certifications and professional designations that may mislead consumers to believe a producer has special senior-specific education or training in connection with providing life insurance sales or advice. A term may be considered a senior-specific designation if the combination of words or an acronym includes words like: senior, retirement, elder OR similar words in combination with words like: certified, registered, chartered, advisor, specialist, consultant, planner. A senior-specific certification or designation may only be used if: 1. the producer has earned the certification or designation; 2. it does not indicate or imply a level of occupational qualification through education or training that the producer does not have; and 3. the certification or designation is not self-conferred and is from an organization that maintains controls to ensure designees maintain a certain level of competency and professionalism. Under the new law, in addition to complying with the standards described above, a producer must clearly and prominently disclose the basis of any senior-specific designation used in an advertisement and in writing at an initial meeting or consultation with a prospective customer. Clear and prominent disclosure for printed material means: The disclosure is in a type size sufficiently noticeable for an ordinary customer to read For oral material, that the volume is sufficient for an ordinary customer to hear and comprehend. Take note, this law allows the Attorney General to seek to enjoin the use of a designation that violates this law without having to show that its use has actual caused injury or harm. American National encourages producers to limit their use to bona-fide senior-specific certifications and designations and to comply with these disclosure requirements. eapplications are available for life insurance in New York! Learn More! For Agent Use Only; Not for Distribution or Use with Consumers 7

8 Annuity Products American National Insurance Company ANICO Strategy Indexed Annuity (ASIA) PLUS 10-Year Effective Date: March 1, Year Premium Enhancement 1.00% 1.00% Interest Crediting Strategies: Declared Rate Method Declared Rate: One Year Performance Method Specified Rate: One Year Monthly Sum Method Monthly Cap: Point to Point Methods (1, 3, or 5 years) 2.00% 2.00% 3.00% 3.00% 2.00% 2.00% 1 year 100% Participation Cap: 4.25% 4.25% 1 year 75% Participation Cap: Currently Unavailable 1 year 50% Participation Cap: Currently Unavailable 3 year 100% Participation Cap: 10.00% 10.00% 3 year 75% Participation Cap: Currently Unavailable 3 year 50% Participation Cap: 27.00% 27.00% 5 year 100% Participation Cap: 20.00% 20.00% 5 year 75% Participation Cap: 30.00% 30.00% 5 year 50% Participation Cap: 40.00% 40.00% Lifetime Income Rider (Fixed) Fixed Rate: 7.00% 7.00% Accumulation Period: 10 Years 10 Years Rider Premium Enhancement: N/A N/A Rider Premium Charge: 0.60% 0.60% Lifetime Income Rider (Fixed + Index) Fixed Rate: 4.00% 4.00% Accumulation Period: 10 Years 10 Years Rider Premium Enhancement: N/A N/A Rider Premium Charge: 0.30% 0.30% ANICO Value-Lock 10 Indexed Annuity 10-Year Participation Rate 100% Rates in BOLD indicate a change from the previous rate. Single Premium Immediate Annuity (SPIA) For Quotes Call or use SPIA Express via our Web site at http//img.anicoweb.com Multi-Year Guarantee Annuity (MYG) Effective Yield 5-Year 2.00% 1.00% 1.20% 6-Year 1.30% 1.30% 1.30% 7-Year 2.90% 1.90% 2.04% 8-Year 1.90% 1.90% 1.90% 9-Year 3.70% 1.70% 1.92% 10-Year 2.80% 1.80% 1.90% Initial contributions of $100,000 or more receive an additional 10 basis points for the life of the contract. Rate subject to change for new issues at any time. WealthQuest Citadel 5 & 7 Diamond WQCD 5 * 2.20% 1.20% WQCD 7 ** 3.20% 1.20% Initial contributions of $100,000 or more receive an additional 10 basis points for the life of the contract.* Rate includes 1% interest rate enhancement on all premium payments received in the first year for one year. ** Rate includes 2% interest rate enhancement on all premium payments received in the first 36 months of the contract for one year. Century (Bonus Annuities) Rate Century 1.30% 1.30% Century I 2.30% 1.30% Century III 4.30% 1.30% Century V 6.30% 1.30% Century VII 8.30% 1.30% Premium Enhancement 2.00% is for the initial guarantee period only. It is not used for renewal rates beyond the initial guarantee period. Base rates are subject to change at any time. Group Fixed Annuity (Pension Annuity) 1.00% 1.00% NAIC Index: Minimum Guaranteed Indexed Rate in NAIC Indexed States is 1.00% for the MYG, Century, WealthQuest Citadel 5 & 7 Diamond Series, ANICO Value-Lock Annuity, ANICO Strategy Indexed Annuity PLUS and Group Fixed Annuity. For Agent Use Only; Not for Distribution or Use with Consumers. 8 For Agent Use Only; Not for Distribution or Use with Consumers

9 Life Products American National Insurance Company Effective Date: March 1, 2015 Rates in BOLD indicate a change from the previous rate. NEW! Signature Indexed Universal Life Fixed Account Fixed Rate: 4.00% Point to Point with Cap Participation Rate 100% Cap 14.00% Floor 0.00% Strategy Illustrated Rate 8.90% Point to Point with Cap and Higher Floor Participation Rate 100% Cap 10.00% Floor 1.50% Strategy Illustrated Rate 7.40% Point to Point with Specified Rate Specified Rate 7.50% Strategy Illustrated Rate 6.00% Variable Loan Rate 4.15% ANICO Executive Universal Life ANICO Executive Universal Life SI 4.00% 4.00% WealthQuest III Variable Universal Life Fixed Account Rate 3.75% ANICO Signature Term ANICO Signature Term SI Affinity 7 Whole Life For Quotes or More Information, call or visit our website at All registered variable products are offered through ANICO Financial Services, Inc. ( ANFS ), Member FINRA, One Moody Plaza, Suite 1423 Galveston, TX ANFS is a subsidiary of American National Insurance Company. American National Insurance Company, One Moody Plaza, Galveston, Texas For Agent For Use Agent Only; Use Only; Not Not for for Distribution or or Use Use with Consumers with Consumers. 9

10 American National Life Insurance Company of New York 1 (877) Effective Date: March 1, 2015 Annuity Products Multi-Year Guarantee Annuity (MYG) - NY Effective Yield 5-Year 2.00% 1.00% 1.20% 6-Year 1.30% 1.30% 1.30% 7-Year 2.90% 1.90% 2.04% 10-Year 2.80% 1.80% 1.90% Initial contributions of $100,000 or more receive an additional 10 basis points for the life of the contract. Rate subject to change for new issues at any time. Rates in BOLD indicate a change from the previous rate. Single Premium Immediate Annuity (SPIA) - NY For Quotes Call or use SPIA Express via our Web site at http//img.anicoweb.com WealthQuest Citadel 5 & 7 Diamond WQCD 5 * 2.20% 1.20% WQCD 7 ** 3.20% 1.20% Initial contributions of $100,000 or more receive an additional 10 basis points for the life of the contract.* Rate includes 1% interest rate enhancement on all premium payments received in the first year for one year. ** Rate includes 2% interest rate enhancement on all premium payments received in the first 36 months of the contract for one year. is for the initial guarantee period only. It is not used for renewal rates beyond the initial guarantee period. Base rates are subject to change at any time. NAIC Index: Minimum Guaranteed Indexed Rate in NAIC Indexed States is 1.00% for the MYG, WealthQuest Citadel 5 & 7 Diamond Series. Life Products Executive Universal Life - NY Executive SI Universal Life - NY 4.00% 4.00% Rates in BOLD indicate a change from the previous rate. ANICO Signature Term NY ANICO Signature Term SI NY For Quotes Call or visit our website at for more information. For Agent 10 For Use Agent Only; Use Only; Not Not for for Distribution Distribution or or Use Use with Consumers with Consumers.