Value+ IUL
You asked for it – and we delivered.
Strong, flexible life protection at a market-leading price
-- plus Optionality!
Presented by…
Policies issued by The United States Life Insurance Company in the City of New York ,
a member company of AIG
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
1 Internal Revenue Code Section 1035 and associated rules are complex in nature. The policy owner may incur
surrender charges from the previous policy and be subject to new sales and surrender charges and other
limitations with the new policy. It is highly recommended that the policy owner consult a tax advisor prior to
exchanging a policy.
2 Depending on the client’s issue age, underwriting and level of planned premium payments.
3 Based on current assumed charges, interest crediting and premium payments.
2
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Clients are looking for lower prices.
With market-leading pricing -- as much as 10
percent below most GUL policies -Value+ IUL is well positioned to serve your
clients.
Its low-cost design, combined with the
advantages of Optionality, will help you serve
more clients and win more cases in all rate
classes.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Clients want the security of strong,
dependable life protection.
And Value+ IUL delivers. The death benefit can
be guaranteed all the way to age 85,
depending on the client’s age, underwriting and
payment of required premiums.
After the guarantee period, the policy can
continue on a non-guaranteed basis for the
client’s lifetime, based on current assumed
charges, interest crediting and premium
payments.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Value+ IUL Competitive Premium
Male, PPNT, $1M Level DB, Carry/Guarantee to Age 105. 6% Illustrated Rate for IULs.
GUL: Guarantee to Age 105
IUL: Carry to Age 105 (6%)
AIG’s
Value+ IUL
UL:
Carry to
Age 105
Lincoln
John
Hancock
Protective
John
Hancock
YourLife
NLG UL
LifeGuarantee
UL
Protection
IUL
Index
Choice UL
UL
Protective Prudential Nationwide
Age
(Carry to
A105)
45
55
65
$5,681
Custom
UL
Choice UL Protector
$6,052
$6,847
$6,032
$7,677
$6,242
$6,181
$5,974
(+7%)
(+21%)
(+6%)
(+35%)
(+10%)
(+9%)
(+5%)
$10,288
$11,250
$10,317
$11,838
$10,506
$10,865
$10,095
(+8%)
(+18%)
(+8%)
(+24%)
(+10%)
(+14%)
(+6%)
$18,179
$19,785
$19,185
$18,821
$19,206
$19,828
$18,157
(+3%)
(+12%)
(+9%)
(+7%)
(+9%)
(+12%)
(+3%)
$9,544
$17,650
Hypothetical representation for illustrative purposes only.
These comparisons cannot be used with the public. Complete personalized policy illustrations for each company product must be
presented or discussed with your client regarding guaranteed and nonguaranteed elements of the policy, including surrender
values, accumulation values, loans, withdrawals, death benefits and other important information.
Rates as of 12/18/2014. Illustrated for the state of Colorado. These carriers are peer group competitors of American General Life
Insurance Company. Value+ IUL (6%), Protective Custom Choice UL (policy form # UL-22, 2%), Prudential PruLife® Universal
Protector (policy form # ULNLG-2013; 2.50%), Nationwide YourLife® No-Lapse Guarantee UL (policy form #NWLA0444-CO:
3%); Lincoln LifeGuarantee UL (2013) (policy form #UL6000, 2%) , John Hancock Protection IUL (policy form #13PIUL, 6%),
Protective Index Choices UL (policy form # ICC13-UL23; 6.00%), John Hancock Protection UL (policy form #13PROUL, 5.05%).
5
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Value+ IUL Competitive Premium
Male, 45, PPNT, $1M Level DB, Carry/Guarantee to Age 105. 6% Illustrated Rate for IULs.
IUL: Carry to Age 105
(6%)
GUL: Guarantee to Age 105
AIG’s
Value+ IUL
Protective Prudential Nationwide
Lincoln
John
Hancock
Protective
UL:
Carry to Age
105
John
Hancock
Age
(Carry to
A105)
Level
10-pay
1-Pay
$5,681
Custom
UL
Choice UL Protector
YourLife
NLG UL
LifeGuarantee
UL
UL
$6,052
$6,847
$6,032
$7,677
$6,242
$6,181
$5,974
(+7%)
(+21%)
(+6%)
(+35%)
(+10%)
(+9%)
(+5%)
$18,225
$14,576
$15,692
$22,173
$12,464
$13,209
$11,638
(+59%)
(+27%)
(+37%)
(+93%)
(+9%)
(+15%)
(+1%)
$176,249
$137,726
$150,750
$197,733
$102,127
$102,649
$94,615
(+95%)
(+52%)
(+67%)
(+119%)
(+13%)
(+14%)
(+5%)
$11,467
$90,391
Protection
Index
IUL
Choice UL
Hypothetical representation for illustrative purposes only.
These comparisons cannot be used with the public. Complete personalized policy illustrations for each company product must be
presented or discussed with your client regarding guaranteed and nonguaranteed elements of the policy, including surrender
values, accumulation values, loans, withdrawals, death benefits and other important information.
Rates as of 12/18/2014. Illustrated for the state of Colorado. These carriers are peer group competitors of American General Life
Insurance Company. Value+ IUL (6%), Protective Custom Choice UL (policy form # UL-22, 2%), Prudential PruLife® Universal
Protector (policy form # ULNLG-2013; 2.50%), Nationwide YourLife® No-Lapse Guarantee UL (policy form #NWLA0444-CO:
3%); Lincoln LifeGuarantee UL (2013) (policy form #UL6000, 2%) , John Hancock Protection IUL (policy form #13PIUL, 6%),
Protective Index Choices UL (policy form # ICC13-UL23; 6.00%), John Hancock Protection UL (policy form #13PROUL, 5.05%).
6
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
7
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Key Terminology
Benchmark Premium:
The Benchmark Premium is a level annual premium which is intended to carry
your policy to or close to maturity on a current (non-guaranteed) assumption
basis assuming 1) a 6% illustrated rate and 2) that premiums have been paid
on time at the beginning of each policy year.
Benchmark Cash Value:
The Minimum Benchmark Cash Value is based on paying the Benchmark
Premium for the lifetime of the contract, and is set at a level where, continuing
to fund the policy at the Benchmark Premium level after the option date, the
policy will in all likelihood remain in force on a reasonable current assumption
basis.
8
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Value+ Cash Access
If the policy is funded early (either through a single-pay premium or the
transfer of a policy from another company or ), the client may withdraw
funds above the cumulative benchmark premiums in years 3 through
14 with no surrender charges, to the extent that Accumulation Value is
available.1 The funds are not locked in.2, 3
1. The Benchmark Premium is a level annual premium which is intended to carry the policy to or close to maturity on a current
(non-guaranteed) assumption basis assuming 1) a 6% illustrated rate and 2) that premiums have been paid on time at the
beginning of each policy year.
2. Under current federal tax law, partial withdrawals are reportable to the policy owner, and may be taxable.
3. Limitations apply.
9
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Male 45 PNT, $100,000 external 1035 Exchange DB is $1,000,000, 6.86%
Guarantee to Age 85 Carrying to Age 121. Benchmark Premium: $6,509
Year
CSV1 with Unlocked Surrender Charges
1
$70,726
2
$79,993
3
$100,000
4
$102,508
5
$113,539
6
$129,638
7
$146,925
8
$166,391
9
$186,339
10
$207,774
11
$232,789
12
$259,548
13
$288,187
14
$318,853
1 CSV = Cash Surrender Value
Hypothetical representation for illustrative purposes only.
Internal Revenue Code Section 1035 and associated rules are complex in nature. The policy owner may incur surrender
charges from the previous policy and be subject to new sales and surrender charges and other limitations with the new policy.
10
It is highly recommended that the policy owner consult a tax advisor prior to exchanging a policy.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Value+ Cash Access
If clients pay extra premium into their policy to achieve additional tax
advantaged growth, they can use this unique liquidity option to
withdraw excess premiums in policy year 20 with no decrease in their
initial death benefit,1 if there is available cash surrender value in the
policy.2, 3
1. Option election dates are at the end of the 20th policy for issue ages 0-64 or the later of age 85 or the end of the 5th policy
year for issue ages 65-85.
2. Under current federal tax law, partial withdrawals are reportable to the policy owner, and may be taxable.
3. Limitations apply.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
11
Assume the policyowner funds the policy at $2,000 above the Benchmark
Premium of $6,955 for 20 years, then they withdraw the additional funds
in year 20 and pay only Benchmark Premium in future years:
The policy earns a 6% hypothetical crediting rate:
Annual Premium
Cumulative Premiums
End of Policy Year 20
Benchmark Premium
$6,955
$139,100
Hypothetical Premium – Additional
$2,000/Year for 20 years
$8,955
$179,100
Funding Access Available
$40,000
Male 50 Preferred Non-Tobacco $750,000 DB
6.00% Illustrated Rate
12
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
What happens if the Policyowner exercises the Cash Access from
Excess Funding feature?
No Additional
Funding
With Additional Funding After
Withdrawal
Death Benefit
$750,000
$750,000
Cash Value Year 20
$148,266
$189,186
Premiums Years 1-20
$6,995
$8,995
Premiums at Years 21+
$6,995
$6,995
Policy Guarantees Death
Benefit To
Age 85
Age 85
Death Benefit Age 85
$750,000
$750,000
Policy Stays Inforce To
Age 121
Age 121
Cash Value at Age 100
$741,268
$1,383,365
Death Benefit Age 100
$750,000
$1,383,365
At 6.00% Hypothetical Crediting Rate
13
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Value+ Cash Access
If values in the policy exceed benchmark assumptions due to strong
index performance, this one-of-a-kind liquidity option allows clients to
withdraw the excess cash value, either in policy year 20 or at age 85 –
with no decrease in the initial death benefit or length of death benefit
guarantee.1 The cash can be used as desired, or to buy additional
paid-up life insurance without further underwriting.2
1. Option election dates are at the end of the 20th policy year (for issue ages 0-64) and the later of age 85 or the end of the
5th policy year (for all issue ages).
2. Under current federal tax law, partial withdrawals are reportable to the policy owner and may be taxable. Limitations
apply.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
14
Male 45 PNT, $500,000 DB
Assume the policyowner pays a premium of $3,395 which will guarantee the
policy to age 81 at a 6% rate of return:
If the policy actually earned 6.86% the results would be as follows:
End of Year 20
At Age 85
Benchmark Cash Value
$65,313
$157,905
Cash Surrender Value
$73,277
$277,171
At 6.86%, the policy would have additional Accumulation Value above the
Benchmark Cash Value that could either be withdrawn or used to purchase
additional paid-up life insurance:
End of Year 20
At Age 85
Cash Access from Strong
Index Performance
Available:
$7,964
$50,000
Additional Paid-Up Life
Insurance Available
$15,617
$63,150
Paid Up Life Insurance Option Only Available for Standard or Better
15
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Index Strategy Options
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Current Rates
Declared Interest Account
Current Rate
2.25%
Minimum Guarantee
2.00%
Cap Rate Index Account
Current Cap Rate
10.00%
Illustrated Rate
6.86%
Minimum Guarantee
0.25%
Participation Rate Index Account
Current Participation Rate
55%
Illustrated Rate
7.25%
Minimum Guarantee
0.25%
Guaranteed Account Value Enhancement
of 0.75% Beginning Year 6!
17
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
S&P 500 Interest Crediting Strategy
Account
Option
Annual Pointto-Point
Index Interest
Account
How It Works
Potential Advantages
Interest earned is based in part on
the annual change in the S&P 500
(excluding dividends) from one
strategy anniversary to the next,
subject to the annual index rate cap.
Can provide attractive
interest in years where
there is an annual pointto-point increase in the
value of the S&P 500.
• If the index is up at then end of
the term, interest would be
credited to the account.
• If the index is flat or down at the
end of the term the minimum
guarantee of 0.25% would be
credited.
18
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
S&P 500 Interest Crediting Strategy
Source: http://finance.yahoo.com
Just
Measuring
The Difference
Between Two
Points In Time
19
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
S&P 500 Interest Crediting Strategy with a Cap
In this example, index strategy:
• Provides the potential to be credited with up to 10.00% interest each
strategy anniversary
• Guarantees that the annual interest earned will never be less than 0.25%
S&P 500 Index
Value
S&P 500 Annual
Percent Change
Interest Credited
Strategy Creation
1,000
-
-
Anniversary 1
1,112
+10.61%
10.00%
Anniversary 2
1,180
+5.93%
5.93%
Anniversary 3
1,053
-11.37%
0.25%
Hypothetical example assumptions: S&P 500 value at 1,000 on issue date and a 10.00% annual index rate cap.
Note: The index cap is set at contract issue and subject to change. The example assumes the cap is reset at 10.00% every year.
20
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
S&P 500 Interest Crediting Strategy with a Participation Rate
Account
Option
Annual Pointto-Point
Index Interest
Account
How It Works
Potential Advantages
Interest earned is based on the one
year change in the S&P 500 Index
from one strategy anniversary to the
next.
Can provide attractive
interest in years where
there is an annual pointto-point increase in the
value of the S&P 500.
• If the result is positive, interest
would be credited to the policy.
There is no cap on the annual
interest.
• If the result is zero or negative,
the minimum guarantee of 0.25%
would be credited.
21
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
S&P 500 Interest Crediting Strategy with a Participation Rate
In this example, index strategy:
• Provides the potential to be credited with an uncapped return with a
participation rate of 55% each strategy anniversary
S&P 500 Index
Value
S&P 500 Annual
Percent Change
Apply the
Participation
Rate
Interest Credited
Strategy
Creation
1,000
-
-
Anniversary 1
1,083
+8.30%
55%
4.56%
Anniversary 2
1,144
+5.63%
55%
3.10%
Anniversary 3
1,092
-4.55%
-
0.25%
Hypothetical example assumptions: S&P 500 value at 1,000 on issue date and a 55% annual index participation rate.
Note: The index participation rate is set at contract issue and subject to change. The example assumes the cap is reset at 55% every year.
22
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
WinFlex
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Marketing Materials
aig.com/ValueIUL
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Important Information
Policies issued by American General Life Insurance Company (AGL), Policy Form
Numbers ICC14-14779, 14779; Rider Form Numbers 13600, 82012, 82410, 88390,
13601, 07620, 14119, 82001, 82001-5 Rev 0914 except in New York, where issued by
The United States Life Insurance Company in the City of New York (US Life), Policy
Form Numbers 14779N, 14779NU; Rider Form Numbers ADB 79-1E, CI 79-2E.1,
07620N, 14119N, 82001N. Issuing companies AGL and US Life are responsible for
financial obligations of insurance products and is a member of American International
Group, Inc. (AIG). Products may not be available in all states and product features may
vary by state.
©2015 AIG. All rights reserved.
AGLC108354-NY
25
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Index Disclosure for the S&P 500
The S&P 500 (the “Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by American
General Life Insurance Company (AGL). Standard & Poor’s®, S&P®, and S&P 500® are registered trademarks of Standard & Poor’s
Financial Services LLC (“S&P”). The trademarks have been licensed to SPDJI and have been sublicensed for use for certain purposes by
AGL.
The life insurance products underwritten and issued by AGL are not sponsored, endorsed, sold or promoted by SPDJI, S&P, or any of their
respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices does not make any representation or warranty, express
or implied, to the owners of AGL’s or any member of the public regarding the advisability of investing in securities generally or in AGL’s
products particularly or the ability of the Index to track general market performance. S&P Dow Jones Indices’ only relationship to AGL with
respect to the Index is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or
its licensors. The Index is determined, composed and calculated by S&P Dow Jones Indices without regard to AGL or its products. S&P Dow
Jones Indices has no obligation to take the needs of AGL or the owners of its products into consideration in determining, composing or
calculating the Index. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices, and amount of
AGL’s products or the timing of the issuance or sale of AGL’s products or in the determination or calculation of the equation by which AGL’s
products are to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in
connection with the administration, marketing or trading of AGL’s products. There is no assurance that investment products based on the
Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment
advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it
considered to be investment advice.
S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF
THE Index OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN
COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL
NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES
INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY AGL, OWNERS OF AGL’S
PRODUCTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE Index OR WITH RESPECT TO ANY DATA RELATED
THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE
LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO,
LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY
BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND AGL, OTHER THAN THE
LICENSORS OF S&P DOW JONES INDICES LLC.
26
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION