FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC Elite Global Plus ® II* Fixed index interest universal life insurance Presented by… Introducing… *Currently not approved in New York.
Dec 23, 2015
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Elite Global Plus® II*
Fixed index interest universal life insurance
Presented by…
Introducing…
*Currently not approved in New York.
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Target Market
Index Strategies
Product Specifications
Competition
Sales Concepts
Agenda:
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
The next generation IUL, positioned to outperform
the competition. American General Life Companies
pioneered global index universal life. Our innovation in
interest crediting methodologies and diversity of
global indices make Elite Global Plus II a compelling
choice for today’s clients who seek protection and
cash accumulation.
Elite Global Plus II:
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
*From the 2011 Retirement Re-Set Study by American General, as part of SunAmerica Financial Group, with Harris Interactive and Age Wave.
Indexed Universal Life
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Strongest accumulation potential of our UL
products, perfect for supplemental retirement
funding and other future income stream
needs.
Target Market
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Each policy is designed for clients in the 35-to-70 age bracket who want long-term death benefit protection with the potential for high cash value accumulation.
Each is applicable in all sales situations where current values are important, and is best suited for customers with a death benefit protection need of 20 years or more.
Target Market
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Each life insurance policy was designed to produce strong accumulation growth when heavily funded.
As a result, it performs best when heavily funded and with short-pay scenarios.
When paying significantly less than the maximum 7-pay premium, our other index universal life products may provide better death benefit protection and cash value accumulation.
Target Market
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Unsurpassed innovation in interest crediting methodology: Two
crediting options plus overweighting 2 of 3 best performing
indices for potentially higher interest crediting rates*.
More diversity than other carriers: three global indices: S&P 500,
EURO STOXX and Hang Seng*.
Strongest accumulation potential of UL products, perfect for
supplemental retirement funding and other future income stream
needs.
TOP Reasons…
* Global indices available on 5-year index interest account option only; not available in New York.
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Choice Loans option allows improved income stream options
with more flexibility to access cash value. Plus, loan amounts
remain in the accounts eligible for index or declared interest.
One-year point-to-point fixed index interest account with Index
Cap Rider provides an S&P 500 – only allocation option.
Higher targets: 24 month rolling targets* materially improved:
between 20% and 60% depending on age.
Improved cap and participation rates: 5-year* participation rate
65% and 1-year cap rate 10.75%.
What’s New?
*Rolling targets not approved in New York.
* Global indices available on 5-year index interest account option only; not available in New York.
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Interest Crediting Options
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
One-Year Index Account 1-year point-to-point linked to growth of S&P 500® 10.75% current cap and .25% minimum annual guarantee Current maximum illustration rate: 6.76%
Five-Year Index Account 5-year point-to-point linked to growth of 3 global indices Formula overweights top two performing indices (75/25/0) 65% current participation rate and 0% minimum annual guarantee Current maximum illustration rate: 9.28%
Declared Interest Account Current declared rate 3.00% 2.00% minimum annual guarantee
Three Interest Crediting Options
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Anniversary-to-anniversary hypothetical growth in the S&P 500 is18.00 percent, which is greater than the 10.00 percent assumed cap rate.
Guaranteed interest credited during the year....................0.25%
Index interest credited at the end of the year.....................9.75% Difference between 10.00 percent cap rate and 0.25 percent guaranteed interest credited during the index account year)
Total Interest credited during the index account year......10.00% (less policy charges, loans, withdrawals)
Index Interest Account with Index Cap
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Anniversary-to-anniversary hypothetical growth in the S&P 500 is9.00 percent, which is less than the 10.00 percent assumed cap rate. and greater than the guaranteed interest rate
Guaranteed interest credited during the year................... 0.25%
Index interest credited at the end of the year.............. .....8.75% (Difference between 9.00 percent growth and 0.25 percent guaranteed interest credited during the index account year)
Total interest credited during the index account year........9.00% (less policy charges, loans, withdrawals)
Index Interest Account with Index Cap
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Anniversary-to-anniversary hypothetical growth in the S&P 500 is-5.00 percent, which is less than the guaranteed interest rate.
Guaranteed interest credited during the year....................0.25%
No index interest due... ....................................................0.00%
Total interest credited during the index account year........0.25% (less policy charges, loans, withdrawals)
Index Interest Account with Index Cap
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Historical Values 1993–2012 (1-year)
*These hypothetical numbers are intended to demonstrate how interest rates would have been calculated based upon certain assumptions and historical index returns. They demonstrate how rates could vary from year to year. Each value presented above is based on the average of the month-end index value for that year. These figures do not represent actual interest that would have been credited because the cap rate could have affected actual results.
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Assume the Participation Rate is 60%
For this example, assume no loans or withdrawals are taken.
The equivalent of 0% guaranteed annual interest is credited monthly.
Assume the point-to-point returns are as follows:
S&P 500 = 60%EURO STOXX = -28%
Hang Seng = 120%
5-Year Point-to-Point Multiple Fixed Index Interest Account*
* Global indices available on 5-year index interest account option only; not available in New York.
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Hang Seng 120% x 75% = 90%
S&P 500 60% x 25% = 15%
Adjusted Index Return = 105%
Index return to be credited to the 5-year index account *=
105% x 60% Participation Rate = 57.899%
5-Year Point-to-Point Multiple Fixed Index Interest Account*
* Global indices available on 5-year index interest account option only; not available in New York.
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Assume the Participation Rate is 60%
For this example, assume no loans or withdrawals are taken.
The equivalent of 0% guaranteed annual interest is credited monthly.
Assume the point-to-point returns are as follows:
S&P 500 = -10%EURO STOXX = -15%
Hang Seng = -75%
5-Year Point-to-Point Multiple Fixed Index Interest Account*
* Global indices available on 5-year index interest account option only; not available in New York.
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
S&P 500 -10% x 75% = -7.5%
EURO STOXX -15% x 25% = -3.75%
Adjusted Index Return = -11.25%
Index return to be credited to the 5-year index account*=
0% x 60% Participation Rate = 0%
5-Year Point-to-Point Multiple Fixed Index Interest Account*
* Global indices available on 5-year index interest account option only; not available in New York.
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Historical Values 1993–2012 (5-year)
**The level annualized interest rate in column 6 compounded over 5 years, equals the amount in column 5.
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Policy Specifications
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Percent of Premium Load:
Current charge of 7.00 percent of all premiums
Maximum charge of 10.00 percent
Surrender Charges:
Nine-year surrender charge schedule
Policy Charges
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Current monthly administration fee of $5.00
(maximum charge of $20.00)
Five-year monthly expense charge per $1,000 of
specified amount of base policy
Current cost of insurance based on net amount at risk
Rider charges may also apply
Monthly Deductions
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Option 1 (Level): The death benefit is the level
specified amount*
Option 2 (Increasing): The death benefit is the
specified amount plus the accumulation value*
Death Benefit Options
* To the extent that declared and/or excess interest builds more accumulation value in the policy the beneficiary may receive a higher death benefit upon the insured’s death.
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Two Monthly Guarantee Premiums are identified on thepolicy Schedule pages for Elite Global Plus II.
The Monthly Guarantee Premium for First Year establishes a premium that if paid timely guarantees the policy will not lapse in the first policy year.
The Monthly Guarantee Premium for 10 years establishes a premium that if paid timely guarantees the policy will not lapse up to 10 years from the issue date (5 years for issue ages 71 and over).
Monthly Guarantee Premiums
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Standard Loan:
Effective annual loan rate is 4.00 percent (payable in
advance at the rate of 3.85 percent).
Annual effective rate of 3.00 percent will be credited to
the portion of the accumulation value that equals the
amount of policy loans.
Policy Loans
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Preferred Loan:
Available after 10 policy years.
Maximum preferred loan amount is the excess of the
cash surrender value at the beginning of the year less
the sum of premiums paid over partial withdrawals.
Loan rate (not guarantee) currently equals the credited
rate applied to the policy loan.
Policy Loans
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Choice Loans:
Amount of loan is not removed from any account and will be eligible for index or declared interest and does not impact interest crediting or deduction/partial allocation methodology.
Annual effective interest rate is 6.00%
Because an index account’s actual credited rate could be less than the annual loan interest rate, there is the risk the policy could lapse if poor index performance among the indices is sustained.
Policy Loans
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Choice Loans
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
The policy owner can switch between Standard and
Choice Loans two times during the life of the policy.
Changing Policy Loan Types
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Terminal Illness Rider*
Waiver of Monthly Deductions Rider
Overloan Protection Rider
Maturity Extension Option
Term Life Insurance Benefit Rider*
(Now Available In WinFlex)
Riders
*Not approved in New York
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
How Does It Stack Up?
$25k/year for 7 years, Min Non-MEC Face Value, Male 45 PNT, Distributions Age 66-85 with best loan option
Strong Cash Accumulation & Income Potentialat Max Illustrated Rates * Offers fixed loans only
Illustrations generated 3/19/2013 for the state of Colorado. Every attempt has been made to verify the accuracy of this information, but rates are subject to change at any time
Competitor Max Strategy Rate Income Target CV @A65
Allianz LifePro+Form P54350
Global 1 Yr 8.84% 80,611 8,621 597,985
North American Builder IULFrom ICC10LS172
S&P 500 1 Yr 8.30% 71,300 9,008 552,827
American GeneralElite Global Plus IIForm 12967/12967N
Global 5 Yr 9.28% 66,640 8,772 524,549
Minn Life EclipseForm ICC09-700
S&P 500 3 Yr 9.01% 66,643 9,238 521,255
Nationwide YourLife IULForm ICC11-NWLA-453
Blended 1 Yr 8.30% 60,311 9,549 488,972
Aviva Lifetime Builder IIIForm 2ECG10
S&P 500 2 Yr 7.60% 49,871 9,457 483,087
Hartford Frontier IUL 2012*Form ICC12-1377
S&P 1 Yr w Part 7.90% 44,620 9,623 498,615
TransamericaFreedom Global IUL*Form ICC11 IUL05
Global 1 Yr 8.67% 42,646 8,104 485,961
AXA Athena Index UL*Form 12-100
S&P 500 3Yr 7.64% 40,462 8,802 419,005
$25k/year for 7 years, Min Non-MEC Face Value, Male 45 PNT, Distributions Age 66-85 with best loan option
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
How Does It Stack Up?
$25k/year for 7 years, Min Non-MEC Face Value, Male 45 PNT, Distributions Age 66-85 with best loan optionat 20 yr look back rate for max illustrated strategies
Market Leading Performanceon a level playing field
* Offers fixed loans onlyIllustrations generated 3/19/2013 for the state of Colorado. Every attempt has been made to verify the accuracy of this information, but rates are subject to change at any time
Competitor Max Strategy Rate Income Target CV @A65
American General Elite Global Plus II
Global 5 Yr 9.28% 66,640 8,772 524,549
North AmericanBuilder IUL
S&P 500 1 Yr 7.80% 59,788 9,008 507,050
HartfordFrontier IUL 2012*
S&P 1 Yr w Part 7.86% 44,190 9,623 495,296
TransamericaFreedom Global IUL*
Global 1 Yr 8.67% 42,646 8,104 485,961
Minnesota LifeEclipse
S&P 500 3 Yr 7.38% 38,398 9,238 400,852
-16%
-1%
-42%
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Strong Cash & Income Potential
Hindsight Crediting
Global Diversification
Participating/ Capped Loans
AllianzLifePro+
North AmericanBuilder IUL
American GeneralElite Global Plus II
Minnesota LifeEclipse IUL
NationwideYourLife IUL
AvivaLifetime Builder III
HartfordFrontier IUL 2012*
TransamericaFreedom Global IUL*
AXAAthena Index UL*
34
How Does It Stack Up?
Strong Accumulation with Differentiated Design* Offers fixed loans onlyIllustrations generated 3/19/2013 for the state of Colorado. Every attempt has been made to verify the accuracy of this information, but rates are subject to change at any time
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Sales Concepts
Supplemental Retirement Savings Income for College Funding
Executive Bonus PlanPremium Financing
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Questions
FOR PRODUCER USE ONLY – NOT FOR DISSEMINATION TO THE PUBLIC
Policies issued by: American General Life Insurance Company, 2727-A Allen Parkway, Houston, Texas 77019. Policy form numbers 12967, ICC-12967. The United States Life Insurance Company in the City of New York, One World Financial Center, 200 Liberty Street, New York, New York, 10281. Elite Global Plus II Policy Form Number 12967N; Waiver of Monthly Deduction Form Number 82001N; Overloan Protection Rider Form Number 07620N. Elite Global Survivor Policy Form Number 08414N; Four Year Term Rider Form Number 01904N; Overloan Protection Rider Form Number 07620JTN. The underwriting risks, financial and contractual obligations and support functions associated with the products issued by American General Life Insurance Company (AGL) and The United States Life Insurance Company in the City of New York (US Life) are its responsibility. Guarantees are subject to the claims paying ability of the issuing insurance company. AGL does not solicit business in New York. Policies and riders not available in all states. American General Life Companies, www.americangerneral.com, is the marketing name for a group of affiliated domestic life insurers, including AGL and US Life. IMPORTANT: Prior to soliciting business, be certain that you are appropriately licensed and appointed with the insurer and that the product has been approved for sale by the insurer in that state. If uncertain, contact your American General Life Companies representative for assistance. Do not state or imply that the purchase of the Elite Global Plus II is like an investment or a means of participating in “securities,” “markets,” stocks,” “stock market index,” or “S&P 500.” STANDARD & POOR’S, S&P and S&P 500 are registered trademarks of Standard & Poor’s Financial Services LLC and have been licensed for use by American General Life Companies. The Product is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s makes no representation regarding the advisability of paying premiums for the Product.
FOR PRODUCER USE ONLY. NOT FOR DISSEMINATION TO THE PUBLIC.AGLC106841
Important Information