for financial professional use only-not for public distribution ag secure lifetime gul ® ii with ag...

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


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


One of Three Things Will Likely Happen

Die Too Soon

Outlive Retirement

Assets

Become Seriously

Ill

4


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


Financial Life Spectrum

BuildingAssets

ProtectingAssets

ExtendingAssets

Die Too Soon

Live Too Long

Get Sick Along

The Way

LifeInsurance

ChronicIllness

LongevityProtection

45 65 85 100

6


AG Secure Lifetime GUL II

Guaranteed Premiums and Death Benefits

Guaranteed Cash Value

50% ROP at Policy Year 20

100% ROP at Age 85

8


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



BuildingAssets

ProtectingAssets

ExtendingAssets

Die Too Soon

Live Too Long

Get Sick Along

The Way

LifeInsurance

ChronicIllness

LongevityProtection

45 65 85 100

10


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

11


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



BuildingAssets

ProtectingAssets

ExtendingAssets

Die Too Soon

Live Too Long

Get Sick Along

The Way

LifeInsurance

ChronicIllness

LongevityProtection

45 65 85 100

14


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

15


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

17


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

18


Premiums Returned!Premiums Returned!

100% ROP at Age 85

2.6x more!


19


American General Life is…

Revolutionizing the way

YOU sell life insurance!

“Telling The Story”

20


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

21


The

Illustratio

n Says It

All!


22


Change the way yousell life insurance:

Turn yourTerm Life Insurance Sales

IntoPermanent UL Sales!

23


Sell The Value:

Clients are Protected Whether They:

Die Too Soon

Outlive Retirement

Assets

Become Seriously

Ill


AG Asset Protector:

Is It Really WorthThe Extra Premium?


Male, 55, Standard-Plus$1,000,000 DB

“Ordinary” GULvs.

AG Asset Protector


28


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.

30


Cumulative Premium Comparison

GUL: A100


32


Cumulative Premium Comparison

GUL: A100

AG Asset P

rotecto

r

Residual Asset Protector DB:

Approx. $450,000


34


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


35


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


36


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?

37


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


AG Asset Protector:

It Really IS Worth It!


American General Life is revolutionizing why

people buy life insurance, and how it’s sold.Become a part of

the next generationof life insurance!


Bring On Tomorrow!

41


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

42


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.


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

for financial professional use only-not for public distribution ag secure lifetime gul ® ii with ag...

Documents

financial professional

retirement assets

portfolio assets

public distribution

ill slide

costs of severe illness

guaranteed premiums

ernst young insurance