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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
AG Secure Lifetime GUL® II
with AG Asset ProtectorSM
Accelerated Access Solution®
Lifestyle Income Solution®
Live Longer.
Retire Stronger.
Life insurance you don't have to die to use
Policies issued by American General Life Insurance Company, a member company of AIG
2
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Agenda
I’d like to describe how American General Life is revolutionizingthe way life insurance is bought and sold
By showing how you can turn illiquid death benefitsinto a liquid pool of money your clients can use
to protect their portfolio assets from the costs ofsevere illness and the risk of outliving their assets
So they can achieve a higher sense offinancial security during their retirement.
3
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
One of Three Things Will Likely Happen
Die Too Soon
Outlive Retirement
Assets
Become Seriously
Ill
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Chances of survival to age X for one spouse of a couple
What the Statistics Say
Prepared by Ernst & Young Insurance and Actuarial Advisory Services practice. The analysis uses the Annuity 2000 mortality table with Scale G2 mortality improvements.
5
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Financial Life Spectrum
BuildingAssets
ProtectingAssets
ExtendingAssets
Die Too Soon
Live Too Long
Get Sick Along
The Way
LifeInsurance
ChronicIllness
LongevityProtection
45 65 85 100
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
AG Secure Lifetime GUL II
Guaranteed Premiums and Death Benefits
Guaranteed Cash Value
50% ROP at Policy Year 20
100% ROP at Age 85
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Returned premiums are more
than 4x the guaranteed
cash surrender
value!
Returned premiums are more
than 4x the guaranteed
cash surrender
value!
50% ROP at Year 20
Hypothetical information for illustrative purposes only.
9
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Financial Life Spectrum
BuildingAssets
ProtectingAssets
ExtendingAssets
Die Too Soon
Live Too Long
Get Sick Along
The Way
LifeInsurance
ChronicIllness
LongevityProtection
45 65 85 100
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Benefits of Accelerated Access Solution: Chronic Illness
101(g)No LTC license necessary
2-out-of-6 ADLs; or Severe Cognitive ImpairmentDeemed to be Permanent
Indemnity BenefitNo Receipts
Spend benefits on anything
Flexible Benefit BaseBenefit = 50% up to 100% of Death Benefit
$50,000 minimum up to $1,500,000 maximum
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Benefits of Accelerated Access Solution: Chronic Illness
Flexible Monthly Benefit
1.IRS Per Diem capped at 2% per month
2.IRS Per Diem capped at 4% per month
3.IRS Per Diem with No Cap!
Max. Monthly Benefit = Total Benefit ÷ 12
IRS caps the maximum daily rate each year. The 2014 maximum is $330/day or $9,900/month. Subsequent years may be higher.
13
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Financial Life Spectrum
BuildingAssets
ProtectingAssets
ExtendingAssets
Die Too Soon
Live Too Long
Get Sick Along
The Way
LifeInsurance
ChronicIllness
LongevityProtection
45 65 85 100
14
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
The Case for Lifestyle Income Solution: Longevity Insurance
1 State of the Insured Retirement Industry: 2012 Recap and a 2013 Outlook, Insured Retirement Institute.
The positive aspects of living longercome with some financial concerns
48% of Americans age 45–70have no financial plans in placeto protect themselves against
outliving their assetsand the rising cost of
health care should theylive longer than expected.1
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Think about what may contribute tothe possibility of outliving your retirement income.
Do any of these issues concern your clients?
Debt Social Security Uncertainty
Historically Low Interest Rates Health Care Expenses
Stock Market Corrections Didn’t Save Enough
Rising Income Tax Rates Political Uncertainty
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Choosing to exercise rights under the Lifestyle Income Solution can impact cash available under the Accelerated Access Solution.
Please speak with your American General Life Insurance Company representative for more information.
Lifestyle Income Solution: Longevity Insurance
1.Accelerate up to 10% of DB per year
2.Primary requirement: Live to age 85
3.Tax-free up to basis; ordinary income after
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Premiums Returned!Premiums Returned!
100% ROP at Age 85
2.6x more!
Hypothetical information for illustrative purposes only.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
American General Life is…
Revolutionizing the way
YOU sell life insurance!
“Telling The Story”
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Risk Protection Spectrum
$
Reduced Socia
l Secu
rity In
comeIncome Replacement
Kids to College
Mortgage PayoffHealth Care Costs
Financial Risks
3 big risks get smaller over time.
3 other big risks get larger over time.
20-40 Years Prior to Retirement Retirement Years
$
Age 65 – 70
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
The
Illustratio
n Says It
All!
Hypothetical information for illustrative purposes only.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Change the way yousell life insurance:
Turn yourTerm Life Insurance Sales
IntoPermanent UL Sales!
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Sell The Value:
Clients are Protected Whether They:
Die Too Soon
Outlive Retirement
Assets
Become Seriously
Ill
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
AG Asset Protector:
Is It Really WorthThe Extra Premium?
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Male, 55, Standard-Plus$1,000,000 DB
“Ordinary” GULvs.
AG Asset Protector
Hypothetical information for illustrative purposes only.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
GUL to A100
AG Asset ProtectorTo A85
Premium $13,751 $18,073
Savings vs AG Asset Protector
$4,322 ------------
Available @ A85 $290,000* $1,000,000
Pre-Tax Equiv. Return = $1M 14.04% ------------
10-Year After-Tax Distributions
$35,485* $100,000
GUL vs. AG Asset Protector
* 6% growth, 20% tax rate, 4.8% net return; results rounded down for simplicity.Hypothetical information for illustrative purposes only.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Cumulative Premium Comparison
GUL: A100
Hypothetical information for illustrative purposes only.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Cumulative Premium Comparison
GUL: A100
AG Asset P
rotecto
r
Residual Asset Protector DB:
Approx. $450,000
Hypothetical information for illustrative purposes only.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Invested Premium Savings – Premiums to A100
* 6% growth, 20% tax rate, 4.8% net return; results rounded down for simplicity.
Chronic Illness at age 75?Less than $150,000
Chronic Illness at age 80?About $210,000*
Need extra cash at age 85?
$290,000* or $1,000,000?
Need extra cash at age 85?
$290,000* or $1,000,000?
Even at age 100 you’d be over $300,000 short
Hypothetical information for illustrative purposes only.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Invested Premium Savings – Premiums to A100
* 6% growth, 20% tax rate, 4.8% net return; results rounded down for simplicity.
If you accelerate your entireAG Asset Protector DB starting at age 85,
and invest it at 6% in a 20% tax rate,at age 100 it would be worth almost
$1,600,000!
Assumes AG Asset Protector distributions in excess of basis are taxed as ordinary income.
Projected value = $1,594,075
Hypothetical information for illustrative purposes only.
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Summary:
1. The level of liquidity created by the additional AG Asset Protector premium can’t be created any other way.
2. If you’ve made the decision to buy permanent UL, about the only reason you wouldn’t buy AG Asset Protector is because you simply can’t afford it.
– If you can afford it, what else can you do with the money to generate this kind of liquidity and value?
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Summary:
3. When clients – especially premium payers – realize that they can spend their entire Death Benefit while they’re still alive. . .
They’ll never want to ownlife insurance any other way!
AG Asset Protector provides an unmatched level of financial security, especially during retirement, whether you:
Die Too Soon
Outlive Retirement
Assets
Become Seriously
Ill
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
AG Asset Protector:
It Really IS Worth It!
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
American General Life is revolutionizing why
people buy life insurance, and how it’s sold.Become a part of
the next generationof life insurance!
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FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
Questions?
For additional information, please contact your American General Life Companies 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
Important Information
Policies issued by: American General Life Insurance Company (AGL), Policy Form Number 13460, ICC13-13460, Rider Form Number 13972, 13600, ICC13-13600. 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. Policies and riders not available in all states. These product specifications are not intended to be all-inclusive of product information. State variations may apply. Please refer to the policy for complete details. There may be a charge for each rider selected. See the rider for details regarding the benefit descriptions, limitations and exclusions.
Guarantees are backed by the claims-paying ability of the issuing insurance company.
AGLC107915
©2014. All rights reserved.
FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION
AG Secure Lifetime GUL® II
with AG Asset ProtectorSM
Accelerated Access Solution®
Lifestyle Income Solution®
Live Longer.
Retire Stronger.
Life insurance you don't have to die to use
Policies issued by American General Life Insurance Company, a member company of AIG