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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
AG Platinum Choice VULA variable universal life insurance product
Presented by…
Policies issued by American General Life Insurance Company, a member company of AIG
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
1Q 2014 Annualized Premium Growth
Product Type Affiliated Independent
Universal Life -14% -16%
Variable Universal Life 15% 25%
Term -4% -2%
Whole Life -6% 6%
Total -6% -9%
Source: LIMRA U.S. Retail Individual Life Insurance Sales First Quarter 2014 Report
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Introducing…
AG Platinum Choice VUL
Protection, choice and opportunity for today and beyond.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Target Markets
Individuals under the age of 65 who:
–Need the protection of life insurance and are seeking market
opportunities to accumulate tax-deferred assets to supplement
income-producing assets on a tax favored basis in the future
–Need the security life insurance provides and are searching for a
competitively priced death benefit with long term guarantees
coupled with market-driven asset growth potential
Also ideal for those clients who want to protect against asset
decline due to a chronic illness
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Key Features
Top-tier cash accumulation design for the supplemental retirement
income strategy sale
Flexibility for individual, business or estate planning needs
Competitive death benefit guarantees to choose from:
Optional long term death benefit guaranteed up to maturity through our
Lapse Protection Benefit Rider (especially competitive to age 100 or 105)+
Automatically included 20-Year Benefit Rider at no additional cost if Lapse
Protection Benefit Rider isn't purchased.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
46 investment choices from a stable of 15 well known fund companies
An excellent lineup of stock, bond and international funds
Specialty funds, commodity funds, and real estate investment funds
A socially responsible fund
Multiple index funds
A Dynamic Allocation Fund
Investment Options1
1 It is important to note that investment options offered within AG Platinum Choice VUL are part of a variable universal life insurance policy and are not mutual funds. If you select certain riders, there may be requirements regarding the investment options you choose. For a more detailed description of these options and any investment option requirements, please refer to the most current policy prospectus. Consult fund prospectuses for information about the fund.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Our Fund Managers and Sub-Advisors
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Dynamic Allocation Fund
Portfolio Goals
Each Portfolio seeks capital appreciation and current income while managing net equity exposure.
Portfolio Highlights
Actively managed fund-of-funds that draw on the expertise of more than 22 money managers
The Portfolio invests in a diversified mix of more than 33 underlying portfolios that cross the spectrum of asset classes and investment styles
Dynamic asset allocation technique is employed to help manage net equity exposure and the effects of volatile equity markets
As expected equity market volatility increases or decreases, the subadviser will use the overlay component to adjust the overall portfolio’s level of equity exposure up or down in an effort to maintain a relatively stable exposure to the equity market volatility over time
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Dynamic Allocation Fund
Asset Allocation Fund (PineBridge) International Equities Fund (PineBridge)
Blue Chip Growth Fund (T. Rowe Price) International Government Bond Fund (PineBridge)
Broad Cap Value Income Fund (Barrow Hanley) International Growth Fund (American Century/Invesco/MFS)
Capital Conservation Fund (PineBridge) Large Cap Core Fund (Columbia)
Core Equity Fund (BlackRock) Large Capital Growth Fund (SunAmerica/Invesco)
Dividend Value Fund (Blackrock/SunAmerica) Mid Cap Index Fund (SunAmerica)
Dynamic Allocation Fund (AllianceBerstein/SunAmerica) Mid Cap Strategic Growth Fund (Morgan Stanley/RCM)
Emerging Economies Fund (JP Morgan) Money Market I Fund
Foreign Value Fund (Franklin Templeton) Nasdaq-100® Index Fund (SunAmerica)
Global Real Estate Fund (Invesco/Goldman Sachs) Science and Technology Fund (T. Rowe Price/RCM/Wellington)
Global Social Awareness Fund (PineBridge) Small Cap Fund (Invesco/T.RowePrice/Bridgeway)
Global Strategy Fund (Franklin Templeton) Small Cap Aggressive Growth Fund (RS Investments)
Government Securities Fund (JP Morgan/SunAmerica) Small Cap Index Fund (SunAmerica)
Growth Fund (American Century) Small Cap Special Value Fund (Wells Cap/Dreman)
Growth and Income Fund (SunAmerica) Small-Mid Growth Fund (Wells Cap/Century Capital)
Health Sciences Fund (T. Rowe Price) Stock Index Fund (SunAmerica)
Inflation Protected Fund (PineBridge) Value Fund (Wellington)
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Risk Management Tools
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Dollar Cost Averaging
(cannot be used with Automatic Rebalancing)
Let time do the work for you!
Automatic Rebalancing
(cannot be used with Dollar Cost Averaging)
Take the work out of rebalancing your portfolio!
Client directed expense options
Risk Management Tools
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Automatic Rebalancing
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Dollar Cost Averaging
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Client Directed Expenses
Since charges are deducted from the underlying investment options of your client's policy on a monthly basis they could be selling losses within their investments in a down market.
By structuring the allocation of expenses to be deducted from a relatively stable or conservative investment option rather than a more volatile one, your clients can potentially limit the drain placed on allocated fund choices.
This type of strategy may prevent the situation of "Buying high and selling low".
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2
4
6
8
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Expense Allocation
Fund A Fund B
Fund C Fund D
Fund E (Lower volatility) Fund F
Fund G Fund H
Date
Un
it V
alu
es
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Policy Specifications
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Policy Specifications
Death Benefit Option 1 (Level) Pays the specified amount on the date of the insured person’s death
Death Benefit Option 2 (Increasing) Pays the sum of the specified amount on the date of the insured
person’s death and the policy’s accumulation value as of the date of
death
Issue Ages 0-80
Minimum Death Benefit $100,000
Underwriting Classes* Preferred Plus Non-TobaccoPreferred Non-Tobacco
Standard Plus Non-TobaccoStandard Non-Tobacco
Preferred TobaccoStandard Tobacco
*Special non-tobacco & Special tobacco classes not shown but available as well as substandard and table ratings
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Policy Loans
Non Preferred Loan Preferred Loan
Effective annual loan rate is 4.75%,
payable in advance at 4.53%
Current annual effective rate of 4.00%
credited to the portion of accumulation
value that equals the amount of policy
loans.
Net cost of 0.75%
Available after the 10th policy year
Effective annual loan rate is 4.00%,
payable in advance at 3.84%
Current annual effective rate of 4.00%
credited to the portion of accumulation
value that equals the amount of policy
loans.
Net cost of 0.00%
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Policy Specifications
Fixed Account Current
Minimum Guarantee 2.00%
Surrender Charge Period 9 Years
A new surrender charge period of 9 years will also
apply to any requested increases in the policy’s
specified amount
Account Value Enhancement
Beginning at the end of the 21st year
0.01% Guaranteed 0.15% Current
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Policy Fees & Charges
Charge When Charge is Deducted
Guaranteed Charge
Current Charge
Premium Tax Upon receipt of each premium
payment
3.5%1 of each premium payment
0.5% to 3.5%1 of each premium
payment
Premium Expense Charge
Policy years 1-52
Upon receipt of each premium
payment
10% of the premium payment remaining after deduction of the premium tax
charge
9.0% of the premium payment
remaining after deduction of the
premium tax charge
Transfer Fee Upon a transfer of accumulation value
First 12 transfers in a policy year are free of charge3
First 12 transfers in a policy year are free of charge3
1 Statutory premium tax rates vary by state. Certain local jurisdictions may assess additional premium taxes.2 After the 5th Policy year, the current premium expense charge will be as follows: Policy years 6‑10...........rate of 5% Policy years 11+.............rate of 2%These reductions do not apply to the guaranteed charge. The guaranteed maximum charge is 10% regardless of Policy year.
3 The first 12 transfers in a Policy year are free of charge. A $25 charge will be accessed after the first 12 transfers.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Policy Fees & Charges
Charge When Charge is Deducted
Guaranteed Charge
Current Charge
Monthly Administration Fee
Monthly, at the beginning of each
policy month
$10 $10
Cost of Insurance Monthly, at the beginning of each
policy month
Per $1,000 of net amount at risk1
Will vary dependent upon the insured’s sex, age, premium class, policy year
and specified amount
Monthly Charge per $1,000 of specified amount
Monthly, at the beginning of each
policy month, during the 1st 5 policy years
only
Per $1,000 of specified amount
Will vary dependent upon the insured’s sex, age, premium class, policy year
and specified amount
1The net amount at risk is the difference between the current death benefit of the policy and the accumulation value of the policy.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Riders
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Riders1
Accidental Death Benefit Rider
Accelerated Access Solution
Children’s Insurance Benefit Rider
20-Year Benefit Rider
Lapse Protection Benefit Rider
Spouse Term Rider
Terminal Illness Rider
Waiver of Monthly Deduction Rider
Overloan Protection Rider
1 There may be a charge for each rider you select. Some riders can only be purchased at the time the policy is issued. See the most current policy prospectus for more information. Adding or deleting riders and increasing or decreasing coverage under existing riders can have tax consequences. Policy owners should consult a qualified tax advisor. See rider for complete details.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Lapse Protection Benefit Rider
You must allocate a minimum of 25% of the total accumulation value (less loans) to the Dynamic Allocation Fund
No more than 30% of the accumulation value (less loans) can be allocated to the restricted funds (listed below)
American Funds IS Global Growth FundSM Oppenheimer Global Securities Fund/VA
American Funds IS International FundSM PIMCO CommodityRealReturn® Strategy Portfolio
Franklin Templeton VIP Franklin Small Cap Value Securities Fund
VALIC Co. I Emerging Economies Fund
Invesco V.I. Global Real Estate Fund VALIC Co. I Foreign Value Fund
Invesco V.I. International Growth Fund VALIC Co. I International Equities Fund
MFS® VIT New Discovery Series VALIC Co. I Small Cap Index Fund
VALIC Co. I Science & Technology Fund
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Lapse Protection Benefit Rider
With the Lapse Protection Benefit Rider, the coverage is guaranteed for life not to lapse regardless of market performance, as long as the required minimum premiums are paid to guarantee the death benefit.
This rider also provides flexibility, allowing the policyowner to select the number of years the death benefit will be guaranteed.
There is a cost associated with this rider and that cost will be deducted from the accumulation value of the policy.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
20-Year Benefit Rider
Provides a benefit available to the policyowner when the Lapse Protection Benefit Rider is not selected.
As long as the policyowner has met the monthly guarantee premium requirement, the policy will not lapse.
There is no charge associated with the rider.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Accelerated Access Solution
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Adult Daycare Assisted Living
Family Care Nursing Home Care
Virtually any expense,even those unrelated to the illness
A chronic illness1 rider for AG Platinum Choice VUL
The funds can be used to help pay for –
1Insured must be certified as chronically ill by a licensed physician and meet all eligibility requirements.
Adult Daycare Assisted Living
Family Care Nursing Home Care
Accelerated Access Solution®
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Benefits of Accelerated Access Solution
101(g)– No LTC license necessary: only Life / A&H– 2-out-of-6 ADLs or severe cognitive impairment– Deemed to be permanent
Indemnity– No receipts, spend benefits on anything
Choose your total AAS Benefit Base– Minimum = greater of 50% of DB or $50,000– Maximum = lesser of 100% of DB or $1,500,000
Maximum Monthly Benefit = IRS Monthly Per Diem, with choice of 3 caps:– 2% of AAS Benefit Base; – 4% of AAS Benefit Base; or – Per Diem
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Benefits of Accelerated Access Solution
Inflation hedge against future costs
Purchase more than today’s Per Diem limit!
– Many products won’t allow it!
– Provides inflation protection with a maximum monthly benefit cap
4% Cap – example:
– 4% of $300,000 = $12,000 per month
– Go on-claim in 2014: Collect $9,900 per month
– Go on-claim in the future when Per Diem = $15,000 per month: Collect $12,000 per month
Per Diem – example:
– $300,000 AAS benefit
– Maximum monthly benefit: $300,000 = $15,000 per month
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Accelerated Access Solution Specifications
Issue Ages 18 – 80
AAS Rider must be added at policy issue– Cannot be added to an existing policy
Available through Table D!
Upon approval for an accelerated benefit the value of each of the variable investment options will be transferred to the fixed account
Waiver of costs for the entire policy– If less than 100% is accelerated, 100% of policy costs
are still waived while on claim
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Questions?
For additional information, please contact your American General Life representative or visit our producer web site at
http://eStation.americangeneral.com
National Sales Desk can be reached at 1-800-677-3311
Or visit RetireStronger.com
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Policies issued by: American General Life Insurance Company (AGL), Policy Form Number 14904; Rider Form Numbers 14291, 13600, 82012, 82001, 07620, 13601, 88390, 82410. Issuing company AGL is responsible for financial obligations of insurance products and is a member of American International Group, Inc. (AIG). AGL does not solicit business in the state of New York. Products may not be available in all states and product features may vary by state. Guarantees are backed by the claims-paying ability of the issuing insurance company. Variable universal life insurance policies issued by AGL are distributed AIG Capital Services, Inc., member FINRA.
Investors should carefully consider the investment objectives, risks, fees, charges and expenses before investing. This and other information is contained in the policy prospectus and underlying fund prospectuses, which can be obtained from 1-800-340-2765 or visit www.aig.com/lifeinsurance.
Read the prospectuses carefully before investing.
AGLC108073
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in theUnited States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIG_LatestNews | LinkedIn: http://www.linkedin.com/company/aig
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.