AIG’s Lifetime Income Choice℠ Offers Consumers
the Opportunity to Receive More Income Earlier in Retirement
AIG Life & Retirement, a division of American International
Group, Inc. (NYSE: AIG) and a leading provider of annuities, today
announced a new protected lifetime income benefit for The Power
Series of Index Annuities. Available exclusively through
independent marketing organizations (IMOs), the new Lifetime Income
Choice benefit guarantees income growth and creates added levels of
choice and flexibility, including the opportunity to receive more
income earlier in retirement.
Lifetime Income Choice offers two options—Max Income and Level
Income—to help consumers tailor their income strategy to their
individual lifestyle. The Max Income option maximizes income during
the early, more active years of retirement, when spending tends to
be highest, while Level Income provides a consistent and steady
income for life. For enhanced protection in changing markets, both
options guarantee income growth every year prior to activating
their lifetime income benefit.
“A key part of retirement planning is working with a financial
professional to discuss what you want your future to look like and
the income you’ll need to make that vision possible,” said Eric
Taylor, Senior Vice President, Distribution, Independent Annuities
at AIG. “Everyone’s retirement story is different, so our new
Lifetime Income Choice options let consumers select the income
strategy that works best for them. We’re excited to partner with
IMOs to bring consumers a more flexible income solution to help
meet their diverse retirement needs and goals.”
The Power Series of Index Annuities with Lifetime Income Choice
are retirement solutions designed for accumulation and income. In
addition to securing lifetime income, they offer the potential for
tax-deferred growth, based partly on the performance of an index,
while protecting principal against market downturns.
Notes for Editors
Lifetime Income Choice is designed to increase retirement income
in any market. It locks in the greater of cumulative interest
earned or an annual income credit of 5.50% every year that lifetime
withdrawals are not taken, ensuring that future income will
increase, even if index performance is flat or down.
When consumers are ready to take income, Max Income offers high
initial withdrawal rates of up to 7.25% per year, depending on the
owner’s age at the time of lifetime income activation and the
number of individuals covered. If the annuity’s account balance
becomes depleted, Max Income will provide protected income of up to
4.00% for life.
In contrast, the Level Income option offers a steady stream of
lifetime income, even if the annuity’s account balance is depleted.
Although maximum withdrawal rates are lower than Max Income at
5.85%, Level Income offers consumers the confidence and security of
knowing that their income will not decline for life.
The Power Series of Index Annuities are issued by American
General Life Insurance Company (AGL), an AIG member company.
Guarantees are backed by the claim-paying ability of AGL.
Note: All withdrawal rates mentioned specifically in the press
release are for the single life option, covering one individual
only. The Max Income option may not provide more cumulative income
than the Level Income option.
Index annuities are not a direct investment in the stock market.
They are long-term insurance products with guarantees backed by the
claims-paying ability of the issuing insurance company. They
provide the potential for interest to be credited based in part on
the performance of the specified index, without the risk of loss of
premium due to market downturns or fluctuations. Index annuities
may not be appropriate for all individuals.
Withdrawals may be subject to company-imposed withdrawal
charges. They may also be subject to federal and/or state income
taxes. An additional 10% federal tax may apply if you make
withdrawals or surrender your annuity before age 59½. Consult your
tax advisor regarding your specific situation.
Lifetime Income Choice is a guaranteed living benefit rider
automatically included at contract issue in the Power 7 Protector
Plus Income and Power 10 Protector Plus Income Index Annuities for
an annual fee of 1.10% of the Income Base. The Income Base is the
amount on which lifetime withdrawals are based it is not a part of
the contract value or death benefit and cannot be withdrawn
partially or in a lump sum. The Income Base is initially equal to
the first eligible premium and is increased each time an eligible
premium is made. It is also adjusted for withdrawals (prior to
activation) and excess withdrawals (after activation). On each
contract anniversary, your Income Base is set to equal the greater
of: (1) the anniversary value, if higher; or (2) the Income Base
plus any available income credits. Eligible premiums are all
premiums received in the first 30 days of the contract.
All contract and benefit guarantees, including the fixed account
crediting rates, are backed by the claims-paying ability of the
issuing insurance company. They are not backed by the broker/dealer
from which this annuity is purchased.
The Power Series of Index Annuities are issued by American
General Life Insurance Company (AGL), 2727-A Allen Parkway,
Houston, Texas 77019. Power Series Modified Single Premium Deferred
Fixed Index Annuity, Contract Numbers: AGL-800 (12/12), AG-801
(12/12), AG-800-ID (12/12) and AG-801-ID (12/12). AGL is a member
of the American International Group, Inc. (AIG) family of financial
services companies. The underwriting risks, financial and
contractual obligations and support functions associated with the
annuities issued by AGL are its responsibility. Guarantees are
backed by the claims-paying ability of AGL.
Not FDIC or NCUA/NCUSIF Insured May Lose Value • No Bank or Credit
Union Guarantee Not a Deposit • Not Insured by any Federal
Government Agency
About AIG Life & Retirement
AIG Life & Retirement brings together a broad portfolio of
protection, retirement savings, investment and lifetime income
solutions to help people achieve financial and retirement security.
The business consists of four operating segments – Individual
Retirement, AIG Retirement Services, Life Insurance and
Institutional Markets – and holds longstanding, leading market
positions in many of the markets it serves.
AIG Life & Retirement includes AIG member insurance
companies American General Life Insurance Company (Houston, TX),
The United States Life Insurance Company in the City of New York,
and The Variable Annuity Life Insurance Company (VALIC), Houston,
TX as well as their affiliates. Securities products are distributed
by AIG Capital Services, Inc., member FINRA. Additional information
about AIG Life & Retirement can be found at
www.linkedin.com/showcase/aig-life-&-retirement.
About AIG
American International Group, Inc. (AIG) is a leading global
insurance organization. AIG member companies provide a wide range
of property casualty insurance, life insurance, retirement
solutions, and other financial services to customers in
approximately 80 countries and jurisdictions. These diverse
offerings include products and services that help businesses and
individuals protect their assets, manage risks and provide for
retirement security. AIG common stock is listed on the New York
Stock Exchange.
Additional information about AIG can be found at www.aig.com |
YouTube: www.youtube.com/aig | Twitter: @AIGinsurance
www.twitter.com/AIGinsurance | LinkedIn:
www.linkedin.com/company/aig. These references with additional
information about AIG have been provided as a convenience, and the
information contained on such websites is not incorporated by
reference into this press release.
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 jurisdictions, and coverage is subject to
underwriting requirements and 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20210322005411/en/
Sabra Purtill (Investors): sabra.purtill@aig.com Shelley Singh
(Investors): shelley.singh@aig.com Marc Hazelton (Media):
marc.hazelton@aig.com Matt Burkhard (Media):
matt.burkhard@aig.com
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