American National

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American National

• Value-Lock Equity Indexed Annuities

AMERICAN NATIONAL INSURANCE COMPANY GALVESTON,
TEXAS
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ANICO VALUE-LOCK
Equity Indexed Annuity
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• Equity Index Annuity Terminology

Hedging
Index Period
High Water Mark
Averaging
Cap Rate
Vested Benefits
Margin Charge
SP 500
Monthly Design
Participation Rate
Spread Fee
Options
Point to Point
Annual Reset
NASDAQ
Guaranteed Rate
"Standard Poor's", "SP", "Standard Poors
500" and "500" are trademarks of The McGraw-Hill
Companies, Inc. and have been licensed for use by
American National. The product is not sponsored,
endorsed, sold or promoted by Standard Poors
and Standard Poors makes no representation
regarding the advisability of purchasing the
annuity.
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ANICO VALUE-LOCK
Equity Indexed Annuity
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What is The Best EIA Design?
Replicate the Index
End Term Design
Return
High Water Mark
Annual Reset
Fixed Annuities
Volatility of Return (Risk)
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What is The Best Design?

• Fixed Annuities Low Rate Environment
• Annual Reset Caps, Fees, Spreads, Etc.
• High Water Mark Complicated Formulas
• End Term No Credits Mid-Term
• Replicate the Index Risk of Principal Loss

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ANICO VALUE-LOCK
Equity Indexed Annuity

• Point to Point / End of Term Design
• 100 Participation SP 500 (Guaranteed _at_
  issue for the length of the contract)
• No Cap on Earnings
• No Spread or Margin Fee
• Issue Ages 0-80
• Ten Year or Seven Year Chassis
• Current Premium Bonus on 10-yr of 1
• Potential for 1-5 Premium Enhancement on the 10
  Year

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ANICO VALUE-LOCK
Equity Indexed Annuity

• End Term EIA Design

SP 500 Index
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ANICO VALUE-LOCK
Equity Indexed Annuity

• End Term EIA Design

SP 500 Index
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ANICO VALUE-LOCK
Equity Indexed Annuity

• End Term EIA Design

SP 500 Index
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ANICO VALUE-LOCK
Equity Indexed Annuity

• End Term EIA Design (Hypothetical Example)
• Starting Index Value 500
• Average of 120 Months 1021
• Total Percentage Increase 104
• Interest Credit (100) 104
• Effective Annual Rate 7.4

In This Hypothetical Example Interest Has Been
Earned at an Effective Annual Rate of 7.4
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ANICO VALUE-LOCK
Equity Indexed Annuity

• Unique Lock-In Feature
• Locks in Interest Related to Index Gain
• Prorated Share Credited at Lock-In
• Remaining Interest Credited Daily
• Ten Year - Lock at Any Time
• Seven Year Lock After Two Years

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ANICO VALUE-LOCK
Equity Indexed Annuity

• Unique Lock-In Feature

5th
SP 500 Index
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ANICO VALUE-LOCK
Equity Indexed Annuity

• Unique Lock-In Feature
• Starting Index Value 500
• Average of 60 Months 800
• Total Percentage Increase 60
• Interest Credit (50 at Lock-In) 30
• Interest Credit After Lock-In 6.32

(Hypothetical Example)
In This Hypothetical Example Interest Has Been
Earned at an Effective Annual Rate of 5.86 Over
Ten Years
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ANICO VALUE-LOCK
Equity Indexed Annuity

• Unique Lock-In Feature

7th
SP 500 Index
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ANICO VALUE-LOCK
Equity Indexed Annuity

• Unique Lock-In Feature
• Starting Index Value 500
• Average of 84 Months 1050
• Total Percentage Increase 110
• Interest Credit (70 at Lock-In) 77
• Interest Credit After Lock-In 7.98

(Hypothetical Example)
In This Hypothetical Example Interest Has Been
Earned at an Effective Annual Rate of 8.34 Over
Ten Years
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ANICO VALUE-LOCK
Equity Indexed Annuity

• Guaranteed Minimum Surrender Value
• Ten Year Chassis
• 90 of premium at 1.75
• or the NAIC index
• Seven Year Chassis
• 88.75 of premium at 1.75
• or the NAIC index

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ANICO VALUE-LOCK
Equity Indexed Annuity

• Surrender Charges
• Ten Year Chassis
• 12,12,11,10,9,8,7,6,5,3 (Plus MVA)
• Seven Year Chassis
• 8,8,7,6,5,4,2 (No MVA)
• Depending on the issue state.

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ANICO VALUE-LOCK
Equity Indexed Annuity

• Confinement Waiver
• 60 Days
• Free Withdrawal
• 10 (Amounts withdrawn prior to lock-in do not
  earn any interest related to index gains)
• Death Benefit Pre Lock-In
• Greater of Account Value, Full Lock-In Value,
  Surrender Value.

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ANICO VALUE-LOCK
Equity Indexed Annuity

• Premium Enhancement
• Ten Year Chassis
• Initially issued at 1
• Seven Year Chassis
• Not Available
• May change on a monthly basis.

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ANICO VALUE-LOCK
Equity Indexed Annuity

• Policy Issue Dates
• Weekly 1st, 8th, 16th, 24th
• (Of each month)

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ANICO VALUE-LOCK
Equity Indexed Annuity

• General Agent Compensation
• Ten Year Chassis
• 10
• Seven Year Chassis
• 6

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Value-Lock State Approvals as of 5/27/05

• Value-Lock 10
• AL, AK, AZ, AR, CO, DC, FL, HI, ID, KS, LA, MI,
  MS, MO, NE, NV, NH, NM, OH, SD, TN, WV, WI, WY
• Value-Lock 7
• AL, AK, AZ, AR, CO, DC, FL, HI, ID, KS, LA, MI,
  MS, MO, NE, NV, NH, OH, SD, TN, WV, WI, WY

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. . . In Review, We Have

• Unlimited up-side potential of a long-term
• point-to-point
• No Caps, No Spreads, No Margin Costs
• Vs. Annual or Bi-annual Resets
• 100 Participation Locked-in at issue
• Monthly averaging ONE TIME at end point
  (simple)
• Vs. 12 mos, then 24 mos, re-averaging the first
  12, etc.
• Control over when the end-point actually occurs
• Unique Lock-in Feature (only one in the industry)
• Mitigates the threat of losing previous gains due
  to a market decline in the later years
• Common w/ traditional long-term point-to-points
  high water marks

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ANICO VALUE-LOCK
Equity Indexed Annuity
So how does it compete?
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NEW VALUE-LOCK 10 EIAHow strong is American
Nationals Equity Index Annuity?
Consider the SP 500 Index over the last ten
years had the following products been available
and been in effect from 3/1/1995 through
3/1/2005, the interest credited on a single
premium payment of 100,000 would be as follows
Information compiled by American National,
Independent Marketing Group as of 5/15/05.
Performance listed above should be verified with
each issuing company. Please see carrier product
reference guide and disclosures for more complete
information. Past Performance Does Not Guarantee
Future Results.
Policy Form PIA 10A-NQ, PQ, or PIA10B-NQ, PQ is
issued by American National Insurance Company and
is not available in all states. Standard
Poors?, SP?, Standard Poors 500 and
500 are trademarks of the McGraw-Hill
Companies, Inc. and have been licensed for use by
American National. This product is not endorsed,
sold or promoted by Standard Poors?.
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ANICO VALUE-LOCK
Equity Indexed Annuity
Sales Strategies
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ANICO VALUE-LOCK
Equity Indexed Annuity
Sales Strategies

• 100 Value Lock
• Upside Potential Downside Protection
• 50 Value Lock 50 MYG Series
• Ladder MYGs For Different Yield Opportunities
• 50 Value Lock 50 Other Programs
• Value Lock Protection

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ANICO VALUE-LOCK - Legal Disclosures
When you buy this annuity you are not buying an
ownership interest in any stock or index.
Interest earnings are paid at a rate related to
the performance of the SP 500 Index.
Past performance of the Index is no guarantee of
future results. If the Index losses value over
the indexing term, you will receive the minimum
guaranteed interest rate as required by state law.
Indexed interest will be credited to the annuity
at the end of the indexing term or on the lock-in
date in a lump sum. The amount of interest that
is credited is based on a rate that represents
the average index percentage change. The average
is determined by considering the index value on
the date of issue and the index values on each
monthly anniversary after the annuities date of
issue.
Partial withdrawals and partial surrenders prior
to lock-in will not receive interest credits
related to the performance of the SP 500 Index
or any other interest credits. A premium
enhancement is considered interest earnings by
the IRS and is reported on form 1099 when
withdrawn from the policy. ANICO Value-Lock 7
Equity Indexed Annuity and ANICO Value-Lock 10
Equity Indexed Annuity are issued by American
National Insurance Company (Policy Form No.
PIA7C-NQ, PQ and PIA10A-NQ, PQ and PIA10B-NQ, PQ
respectively)
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ANICO VALUE-LOCK
Equity Indexed Annuity
The Value-Lock is easy to explain for you and
your client no moving parts vs. the trust me
of annual reset designs!