American National Strategy Index 10 review

Yes, and it is one of the stronger options in American National's lineup. It works well for someone who wants a longer accumulation horizon with multiple crediting strategies and the option to add lifetime income. It is less appealing for someone who wants a shorter commitment or who is uncomfortable with a 10-year surrender schedule starting at 10%.

The main reason to buy Strategy Index 10 is to access a broader crediting menu with four indices and seven strategies while building accumulation value over a 10-year horizon. The secondary reason is the optional lifetime income rider, which allows the buyer to build an income base and convert to guaranteed lifetime income when ready. In practical terms, this is the annuity for someone in their 50s who wants to accumulate for a decade and then potentially turn on income in their 60s.

I think Strategy Index 10 is best for someone who has a 10-year or longer time horizon, wants more index diversity than the 7-year version offers, and values having the BNPP Patriot Technology Index as an additional growth option. It is also a good fit for someone who appreciates the Diversified Blend Allocation option and does not want to manage individual index allocations. It is less attractive for someone who needs liquidity within the next decade or who wants full fee transparency before purchasing.

You are buying a principal-protected insurance contract with a 10-year commitment that credits interest based on the performance of four market indices. The premium enhancement gives you a head start, but it comes with a recapture schedule. The optional income rider adds a separate income base that can grow at a guaranteed rate, providing a floor for future income. The Diversified Blend Allocation option is a pre-built portfolio approach that spreads your allocation across multiple strategies automatically.

Strategy Index 10 offers seven crediting strategies across four indices plus a declared rate. The S&P 500 is available in three formats: Enhanced Value Cap (with a 20% maximum allocation), standard Value Cap, and uncapped point-to-point. The S&P MARC 5% offers an uncapped point-to-point with a participation rate. The Nasdaq-100 offers a capped point-to-point. The BNPP Patriot Technology Index offers an uncapped point-to-point with a participation rate. A declared fixed rate rounds out the options.

The Diversified Blend Allocation option is a pre-selected mix of the BNPP Patriot Technology uncapped, S&P MARC 5% uncapped, Nasdaq-100 capped, S&P 500 capped (limited to 20% allocation), and declared rate strategies. This is designed for buyers who want diversification without having to choose individual allocations.

Historical backtesting over 2005–2024 shows the BNPP Patriot Technology strategy averaging 8.14% with a 120% participation rate, while the S&P 500 Enhanced Value Cap averaged 6.85% with a 10% cap and 20% max allocation. The S&P MARC 5% averaged 10.54% with a 200% participation rate.

The optional lifetime income rider works identically to the Strategy Index 7 version. It comes in two options: fixed rate only, or fixed rate plus index credit. The income base grows for up to 10 years or until income payments begin. Income percentages range from 3.5% at age 50 to 7.5% at age 90 for single life, and 3.0% to 7.0% for joint life.

What makes this more compelling on the 10-year product is the alignment of the income base growth period with the surrender period. The income base grows for 10 years, and the surrender period is 10 years. This means a buyer can let the income base fully mature before the contract is out of surrender, at which point they can begin income with maximum flexibility. The fixed rate plus index credit option is particularly interesting here because it allows the income base to benefit from both guaranteed growth and index performance.

Strategy Index 10 allows free withdrawals of up to 10% of annuity value at the beginning of each contract year (minimum $250). Amounts above that are subject to the surrender schedule of **10% / 9% / 8% / 7% / 6% / 5% / 4% / 3% / 2% / 1% / 0%**. California has a slightly reduced schedule: **9% / 8% / 7% / 6% / 5% / 4% / 3% / 2% / 1% / 0%**. An MVA may also apply.

The premium enhancement is applied to all payments made within the first seven years, but it comes with a recapture schedule if you surrender early. This means the true cost of early exit includes both the surrender charge and the premium enhancement recapture.

The confinement, disability, and terminal illness waivers provide surrender-charge-free and MVA-free access in qualifying situations. The confinement waiver is available 90 days after issue, the disability waiver is available immediately but only prior to age 65, and the terminal illness waiver is available 2 years after issue.

The income rider carries a fee that is not disclosed in the brochure. The premium enhancement is subject to recapture on early surrender. There are no other explicit annual fees.

The structural tradeoffs include the 10-year commitment, caps and participation rates that limit upside, the MVA on excess withdrawals, and the S&P 500 Enhanced Value Cap strategy's 20% maximum allocation limit. The BNPP Patriot Technology Index, while offering uncapped potential, is a newer index with limited live track record — the historical performance shown is largely backtested.

Strategy Index 10 is issued by American National Insurance Company, headquartered in Galveston, Texas, and founded in 1905. American National carries an A.M. Best rating of A (Excellent), an S&P rating of A, a Fitch rating of A, and a Comdex score of 75. The company is licensed in all states except New York for this product and writes a broad array of insurance products including life, annuities, and property and casualty coverage.