Index universal life insurance product offers flexible
protection at a market-leading price — plus Optionality®
American International Group, Inc. (NYSE:AIG) today announced
the launch of Value+ IUL, an index universal life insurance product
issued by American General Life Insurance Company. The Value+ IUL
solution is designed to provide flexible business and personal
financial protection at a market-leading price, and two unique
options to access cash value in the policy without reducing the
initial death benefit.
“This product is the direct result of focus groups and
interviews with life insurance producers from across America, and
builds on more than 20 years of expertise in the IUL market,” said
James A. Mallon, President, Life Insurance, AIG Consumer Insurance.
“Value+ IUL offers meaningful guarantees, and flexibility in the
form of special features and interest crediting strategies that
help reduce costs and deliver maximum value. As agents and advisors
can explain to clients, this is ‘Life insurance with Optionality®.
Your needs. Your choices. Your way.’”
While most insurance policies lock in cash, Value+ IUL includes
two unparalleled provisions for accessing excess cash value in the
policy without decreasing the initial death benefit.1 Accessed cash
value can be used to purchase additional, paid-up life insurance
without further underwriting or for any purpose, including
supplemental retirement income. The two distinctive access options
include:
- Access to cash if strong index
performance – If values in the policy exceed benchmark assumptions
due to strong index performance, this one-of-a-kind liquidity
option allows clients to withdraw excess cash value, either in
policy year 20 or at age 85, with no reduction in the initial death
benefit or to the length of the death benefit guarantee. If they
choose, clients can use the cash value to buy additional, paid-up
life insurance without further underwriting.
- Access to cash from excess funding – If
the client pays extra into the policy to achieve additional,
tax-advantaged growth, he or she can use this unique liquidity
option to withdraw excess premiums in policy year 20, with no
decrease in the initial death benefit, if there is available cash
surrender value in the policy.
The Value+ IUL product also offers an early cash value access
option with unlocked surrender charges. If the policy is funded
early (for example, through a single-pay premium or a policy
transfer from another carrier), the client may withdraw funds above
the cumulative benchmark premium in years 3 through 14, to the
extent that accumulation value is available, and with no surrender
charge penalties. The funds are not locked in.
While Value+ IUL is not an investment, it provides clients with
the potential to earn index interest crediting based in part on an
underlying index while providing downside market protection. Index
interest will be based in part on the performance of the selected
indices, but will never be less than 0.25 percent per year. Also,
after year five, the policy will automatically begin receiving an
account value interest enhancement of 0.75 percent per year. This
percentage is guaranteed never to decrease.
Value+ IUL offers three crediting strategies. Clients may
allocate funds to a single strategy or to a combination of two or
three:
- an Index Interest Cap Account, with
interest crediting based in part on annual growth of the S&P
500®,2 along with an annual cap. The index interest account will
never be credited less than 0.25 percent, regardless of index
performance.
- a Strategic Participation Index
Account, with interest crediting based in part on a proprietary ML
Strategic Balanced IndexSM,3 a combination of the S&P 500 and
the Merrill Lynch 10-Year Treasury Futures (Total Return) Index,
subject to a participation rate. This index account will never be
credited less than 0.25 percent, regardless of index
performance.
- a Declared Interest Account, with
crediting declared by the issuing insurance company, with an annual
minimum guaranteed rate of 2.00 percent.
Value+ IUL also offers the potential for living benefits through
the Accelerated Access Solution®, available at an additional fee.
This rider allows policy holders access to a portion of the death
benefit, income tax free (based on current tax laws), if they meet
all eligibility requirements, including being certified by a
licensed physician as chronically ill, with the condition expected
to be permanent.
When the rider is triggered (after a 90-day elimination period),
the policy holder can take 2 percent or 4 percent of the benefit
amount per month, or can choose the IRS per-diem maximum (as
adjusted annually for inflation) to cover medical or virtually any
other bills. A waiver of deduction on the entire Value+ IUL policy
applies as long as the policy holder is on claim.
For more details on the features, customization options, and
benefits of Value+ IUL — reinvented life insurance that provides
outstanding protection and value at a market-leading price — visit
AIG.com/ValueIUL.
This information is general in nature and may be subject to
change. The Company, its financial professionals and other
representatives are not authorized to give legal, tax or accounting
advice. Applicable laws and regulations are complex and subject to
change. Any tax statements in this material are not intended to
suggest the avoidance of U.S. federal, state or local tax
penalties. For advice concerning your situation, consult your
professional attorney, tax advisor or accountant.
1 Under current federal tax law, partial withdrawals are
reportable to the policy owner and may be taxable.
2 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 AGL and US Life. Standard & Poor’s® and S&P® are
registered trademarks of Standard & Poor’s Financial Services
LLC (“S&P”). These trademarks have been licensed to SPDJI and
sublicensed for certain purposes to AGL and US Life. Value+ IUL is
not sponsored, endorsed, sold or promoted by SPDJI, S&P, or
their respective affiliates, and none of such parties make any
representation regarding the advisability of paying premiums for
Value+ IUL nor do they have any liability for any errors,
omissions, or interruptions of the Index.
3 The ML Strategic Balanced IndexSM provides systematic,
rules-based access to the blended performance of two underlying
indices—the S&P 500 (without dividends), which serves to
represent equity performance, and the Merrill Lynch 10-year U.S.
Treasury Futures Total Return Index, which serves to represent
fixed income performance. To help manage overall return volatility,
the Index may also systematically utilize Cash performance in
addition to the performance of the two underlying indices.
Important Note: The ML Strategic Balanced Index embeds an annual
index cost in the calculations of the change in Index Value over
the Index Term. This “embedded index cost” will reduce any change
in Index Value over the Index Term that would otherwise have been
used in the calculation of index interest, and it funds certain
operational and licensing costs for the index. It is not a fee paid
by you or received by the Company. The Company’s licensing
relationship with Merrill Lynch, Pierce, Fenner & Smith
Incorporated for use of the ML Strategic Balances Index and for use
of certain service marks includes the Company’s purchase of
financial instruments for purposes of meeting its interest
crediting obligations. Some portion of those instruments will, or
may be, purchased from Merrill Lynch, Pierce, Fenner & Smith
Incorporated or its Affiliates. Merrill Lynch, Pierce, Fenner &
Smith Incorporated and its affiliates (“BofA Merrill Lynch”)
indices and related information, the name “BofA Merrill Lynch”, and
related trademarks, are intellectual property licensed from BofA
Merrill Lynch, and may not be copied, used, or distributed without
BofA Merrill Lynch’s prior written approval. The products of
licensee (American General Life Insurance Company) have not been
passed on as to their legality or suitability, and are not
regulated, issued, endorsed, sold, guaranteed, or promoted by BofA
Merrill Lynch. BOFA MERRILL LYNCH MAKES NO WARRANTIES AND BEARS NO
LIABILITY WITH RESPECT TO ANY INDEX, ANY RELATED INFORMATION, ITS
TRADEMARKS, OR THE PRODUCT(S) (INCLUDING WITHOUT LIMITATION, ITS
QUALITY, ACCURACY, SUITABILITY AND/OR COMPLETENESS). The ML
Strategic Balanced Index (the “Index”) is the property of Merrill
Lynch, Pierce, Fenner & Smith Incorporated, which has
contracted with S&P Opco, LLC (a subsidiary of S&P Dow
Jones Indices LLC) to calculate and maintain the Index. The Index
is not sponsored by S&P Dow Jones Indices or its affiliates or
its third party licensors (collectively, “S&P Dow Jones
Indices”). S&P Dow Jones Indices will not be liable for any
errors or omissions in calculating the Index. “Calculated by
S&P Dow Jones Indices” and the related stylized mark(s) are
service marks of S&P Dow Jones Indices and have been licensed
for use by Merrill Lynch, Pierce, Fenner & Smith
Incorporated.
Policies issued by American General Life Insurance Company
(AGL). Issuing company AGL is responsible for financial obligations
of insurance products and is a member of American International
Group, Inc. (AIG). Guarantees are backed by the claims-paying
ability of AGL. May not be available in all states and product
features may vary by state. Policy Form Numbers ICC14-14779, 14779,
rider form numbers 13600, 82012, 82410, 88390, 1360, 07620,
14119.
American International Group, Inc. (AIG) is a leading
international insurance organization serving customers in more than
130 countries and jurisdictions. 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 the United 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: @AIGInsurance | 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.
AIG’s Life Insurance DivisionStasa Cushman,
713-831-6414stasa.cushman@aig.com
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