Why it earned this rating
Our assessment
The WealthQuest Citadel 5 Diamond is a traditional fixed annuity that does what traditional fixed annuities do — 100% principal guarantee, declared rate, tax deferral, 10% annual free withdrawal, and flexible premium. Simpler and older than the Palladium MYG series; buyers should compare rates carefully.
The short version
I'll be honest — the WealthQuest Citadel 5 Diamond is an older product that competes in the same space as the Palladium MYG. The Palladium MYG series is newer and generally more competitive. That said, the Citadel 5 Diamond has some distinct features (systematic withdrawal from day one, flexible premium, nursing home waiver for hospital stays, not just nursing facilities) that may suit specific buyers. Check current rates on both before deciding.
Key facts
American National Insurance Company, founded 1905, A (Excellent) A.M. Best. The WealthQuest Citadel 5 Diamond is a flexible-premium traditional fixed annuity with a 5-year declining surrender schedule. 100% principal guarantee. Minimum guaranteed interest rate varies by state.
The full review
Is American National WealthQuest Citadel 5 Diamond a Good Annuity?
Yes, for its intended purpose. A traditional fixed annuity with 100% principal protection, 10% annual free withdrawal, and simple structure from a carrier with over a century of history. The rate competitiveness relative to current market offerings should be confirmed before purchase.
Why Someone Would Buy This Annuity
A conservative retiree who simply wants a safe place to put money with a guaranteed interest rate, no exposure to indexes or market movements, 10% annual access, and the ability to continue making contributions over time. The flexible premium feature allows ongoing deposits, which the single-premium Smart Start Accumulator does not.
Who This Annuity Is Best For
Conservative savers who want the simplest possible fixed annuity structure — no indexes, no riders, no complex allocation decisions. Buyers who want flexible premiums and ongoing access through the systematic withdrawal feature. Not suited for buyers wanting any market participation or higher rates than traditional fixed annuities provide.
What You're Really Buying Here
A flexible-premium traditional fixed annuity. Your principal is 100% guaranteed. You earn a declared interest rate that is set by American National. You can take 10% per year without surrender charges. You can continue making contributions. At the end of five years, the full value is available without any charges.
How the Core Feature Works
American National declares an interest rate that applies to your annuity. The rate accrues on your principal and accumulated interest. You can take up to 10% of your annuity value per year without surrender charges — either as a lump sum or as systematic payments (monthly, quarterly, semi-annual, or annual, even as low as $50 per payment via direct deposit). A 5-year declining surrender schedule applies to amounts above 10%. At the end of five years (after the seventh year in the case of the full schedule below), the contract is fully liquid.
Why the Secondary Feature Matters
The flexible premium feature distinguishes this from single-premium-only FIAs. You can continue depositing money at any time, building the annuity value at the guaranteed rate with each new contribution. The systematic withdrawal feature — available for any amount you choose, in regular scheduled payments — also makes this useful as a simple income supplement tool.
Liquidity and Surrender Schedule
5-year declining surrender: 7,7,7,6,5,4,2. Free withdrawal: 10% of AV per year. Systematic withdrawal available. Emergency waivers: Nursing Home or Hospital Confinement (60+ consecutive days in licensed facility, owner ≤80 at issue), Disability (SS eligible, <65 at issue), Terminal Illness. Death benefit: full annuity value, no surrender charges, no extra expenses. Not all waivers available in all states.
Fees and Tradeoffs
No explicit annual fees. Minimum guaranteed interest rate varies by state. Rate is net of any carrier margin. Older product chassis — confirm current interest rate with agent.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Flexible Premium Traditional Fixed Annuity |
| Surrender Period | 5 Years (7-year declining schedule: 7,7,7,6,5,4,2) |
| Issue Ages | Not specified; typical 0–80 or 0–85 |
| Minimum Premium | Not stated; typical minimum applies |
| Interest Rate | Declared by American National; 100% principal guaranteed |
| Minimum Guaranteed Interest Rate | Varies by state |
| Free Withdrawal | 10% of AV per year; systematic withdrawals available |
| Surrender Schedule | 7, 7, 7, 6, 5, 4, 2 |
| MVA | Not applicable (traditional fixed annuity) |
| Waivers | Nursing Home/Hospital (60+ days, age ≤80), Disability (<65, SS eligible), Terminal Illness |
| Death Benefit | Full annuity value; no surrender charges; avoids probate with named beneficiary |
| Policy Form | WQ503-NQ, PQ (Rev. 12/07) |
Carrier snapshot
American National Insurance Company, founded 1905, Galveston, Texas. A.M. Best: A (Excellent). Part of Brookfield Reinsurance since 2022.
Final take
The WealthQuest Citadel 5 Diamond is a straightforward traditional fixed annuity from a carrier with a long track record. It's simpler than the Palladium MYG series, which is its primary competition within American National's lineup. Before purchasing, compare the current interest rate on this product against the Palladium MYG 5 — the Palladium MYG is typically the more competitive fixed annuity choice. If the Citadel's rate is competitive and the flexible premium feature is important to you, it's a reasonable option.